Inventory management and stock control in “Essen” group of companies

ABM Cloud reports about a project completion on automatic order and inventory management system implementation in retail chain “Essen”.

ABM Inventory inventory system implementation for Essen retail store chain was a way to improve turnover indicators of the company and at the same time reduce inventory surplus. Project effects have shown that only in 11 months average warehouse turnover has considerably improved:

• hypermarkets and supermarkets – by 5%,
  
• convenience stores – by 18%,
  
• DCs – by 24%.
  

At the moment of the company’s preproject audit, existing inventory management problems and reasons that caused them were revealed, which allowed to enhance these processes taking into account industry specifics and customer’s wishes. Inventory management optimization process demanded reorganization of work with orders and creation of merchandising department. After suppliers had been connected to the system, order function passed from store managers to merchandising department specialists. In hypermarkets and supermarkets instead of section managers, procurement managers were involved.

At present time, the system automatically creates supplier orders, considering the actual left-over stock and other factors influencing order size (delivery date, minimal delivery lots, reserves, etc.). All orders from stores to the central warehouse are sent automatically every day, the system also automatically creates and distributes orders to 86 suppliers. To control status, the reporting system (more than 30 specialized reports) is implemented and used. ABM Inventory software utilization allowed a chain to improve Essen inventory turnover indicators on DCs , in hypermarkets, convenience stores significantly. Using information on inventory management indicators dynamics, the company has developed KPI system with a reference to motivation for employees involved in procurement process.

We are grateful to the project team for professionalism and prolific work. We wish GC Essen new opportunities for development and business expansion, effective objectives achievement, successful projects and stable improvement of performance indicators!