Argon

The company was founded in 1995 and today it is the largest retail operator in Vinnitsa region in Ukraine. «Argon» includes a number of chains: Grosh hypermarket and Grosh-Express stores.

locations

More than 40 000

items of assortment

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Background

Before the project implementation, there was a decentralized ordering system. There were 15 people involved in each of the stores.

There was a manual ordering of each item, the quality of the order itself is low. The physical place of order generation is in the client's accounting system on the company's servers.

It was impossible to qualitatively manage inventories, analyze the reasons for shortages and surpluses of goods.

The network experienced shortages in some product lines and overstocks in others. The company was short of sales and profits.

Project Goals

Ensuring optimal inventory levels to ensure sales and constant availability of merchandise in the store.

Reducing the level of excess inventory and optimizing the assortment based on store demand.

Accelerating inventory turnover.

Promptness in obtaining information.

Progress of the project

Optimization

A centralized order and inventory system was created on the basis of Inventory AVM. Data exchange between the client’s commodity accounting system ASTOR and the inventory management system ABM Inventory was realized.

Automation

92 thousand SKUs and 100 suppliers are connected to the inventory management system. At the initial stage, buffers were calculated for each item, and then the system automatically adjusted to the current demand. Management of goods by cross-docking.

Methodological and technical support

Consultations are held to discuss the network’s key inventory management metrics (turnover, missed sales rate, etc.), make recommendations on how to improve performance and deal with problem items.

Implementation results

The results obtained for Argon:

As a result of the optimization, the efficiency of assortment management was significantly improved. Three specialists effectively manage 80,000 SKUs, reducing missed sales to 2.4% and accelerating product turnover. Optimization of delivery schedules and assortment matrices allowed us to focus on in-demand products, increasing customer satisfaction and reducing costs.

2,4

the level of lost sales (10-12%) was reduced.

Qualitative changes:

Staff optimization: 3 people manage 80000 SKUs.
Accelerated turnover of goods.
Revised and optimized delivery schedules for many suppliers.
Revised assortment matrices – optimized assortment, do not deal with those products that lie on the shelf and do not sell.

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