Supply chain stores
Logistic Challenge
- Network of 600 stores1 with short space for stocking
- Heavy logistic structure, with around 60 delivery points to stores (including warehouse)
- High logistic fixed costs
- Low service level <70%) and low supply frequency to stores
- Significative stock-outs in stores
- To minimize problems, suppliers were delivering both in warehouses and stores
1 Including agents
Solution
Results
- Decommissioning of 20 warehouses and their staff
- Lead-time of 24/48 hours to any store in the country
- Higher service level (>98%)
- Payment only takes place when the products are in store
- The system become able to manage new product lauch and sales peaks (e.g. promotions)
- Ability to deliver directly to final customer (B2C)