Benchmarks & Client Cases
Retail Replenishment Flow
The Challenge
Problem
• High pallet return rate to the warehouse: 27%
• 83% of the time of the replenishment team allocated to non-value-added tasks
• Customers leave the store after prolonged periods waiting for support from a salesperson
Root Causes
• Goods received not organised by store category, resulting in significant movements
• Several failed attempts to replenish the same article, due to inaccuracies with the store planogram
• Items that do not have a defined location are replenished, causing entropy in the operation
• Team of busy salespeople replenishing during the day, as opposed to selling
The Solution
• Sorting cell to reorganise incoming goods, minimising redundant storage movements
• Creation of an accessible area for goods to be brought close to the shelves to reduce the replenishment time. Dedication of the replenishment team to this task
• Easy-access area for easy replenishment of high turnover items
• Daily team meetings for replenishment and sales
• Receipt of goods 5 days per week, rather than 3, reducing the stock level in the store
The Results
The project generated a stock reduction and sales increase totalling £12m/year.
Productivity
Productivity increased by 33%
Pallet return rate
Pallet return rate decreased by 70%
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