RETAIL REPLENISHMENT

Indonesia

Sector

Retail Logistics


Issue

The client, a leading sporting goods retailer with over 300 outlets wanted to find the optimal replenishment frequency for their outlets – balancing cost against the critical need for rapid replenishment where outlets may only hold 1-2 units of an item in stock


Solution

  • Detailed analysis of the daily sales of all Java and Bali stores
  • Review of replenishment fleet configuration (particularly box size)
  • Drop frequency simulation (direct for Jakarta, via cross-docks for remainder)
  • Adjustment of replenishment pick/pack policy

Results

  • Every outlet to be replenished every day – doubling replenishment drops
  • Easy to manage ‘Clockwork’ operations (due to same schedule every day)
  • Overall 10% reduction in transport cost
  • Critical increase in product availability at outlets
  • Positive impact on client’s total sales