Background
Orders were manually generated by store managers, leading to inconsistencies and inefficiencies in inventory management.
There were no standardized processes for inventory control, resulting in varied practices and outcomes across different outlets.
Operational and commercial departments operated independently, causing communication gaps and conflicting strategies in product assortment and promotions.
Manual data entry and communication methods (e.g., phone, email) for order placement hindered real-time updates and data accuracy.
Poor visibility into inventory levels and turnover rates made it difficult to make informed decisions and plan effectively.
Without effective tools, optimizing product offerings based on demand and seasonal trends was challenging, impacting sales and customer satisfaction.
Analyzing key performance metrics across stores was cumbersome due to decentralized data and lack of centralized reporting mechanisms.
Progress of Implementation
Identification of Challenges
Toimart identified key challenges in their inventory management system, including decentralized order generation, lack of standardized processes, and insufficient integration between operational and commercial departments. These issues led to inconsistencies in inventory levels, product availability, and operational inefficiencies.
Solution Selection
To address these challenges, Toimart opted for the ABM Inventory solution. The decision was based on the system's technical capabilities, which aligned with Toimart's requirements, and the expertise of the ABM Inventory team in auditing and optimizing retail processes.
Formation of Project Team
To ensure successful implementation, Toimart formed a dedicated project team. This team included heads of the Commercial Department, Analytics, Operations, IT Director, Business Analyst, and Project Manager. Their role was crucial in overseeing the integration process and ensuring alignment with business goals.
Implementation Planning
The implementation process began with detailed planning sessions facilitated by ABM Inventory AI project manager. These sessions outlined the integration steps, data exchange requirements, and timeline for deployment. Clear objectives were set to centralize inventory management and automate order processes.
Integration and Data Exchange
In the initial phase, the ABM Inventory team worked closely with Toimart to integrate their inventory management solution with the existing accounting system. This involved setting up automatic data exchange protocols to ensure seamless communication and real-time updates between systems.
Training and Onboarding
Approximately 100 employees across Toimart's chain were trained on using the ABM Inventory. Training sessions focused on familiarizing users with the new tools, processes, and best practices for efficient inventory management and order handling.
Process Optimization
Alongside system integration, Toimart restructured internal processes related to assortment management, product lifecycle, and supply schedule management. This involved establishing a new department dedicated to product flow management and automating order creation workflows.
Centralization and Standardization
With ABM Inventory in place, Toimart successfully transitioned from decentralized to centralized inventory management. A single specialist now oversees order management across the entire chain, ensuring consistency in ordering decisions and adherence to inventory optimization strategies.
Measurement and Evaluation
Post-implementation, Toimart monitored key metrics closely through ABM Inventory dashboard. This enabled them to track KPIs such as product availability, inventory turnover, and operational efficiency. Regular evaluations allowed adjustments to optimize performance further.
Key effects from the implementation
The results obtained for Toimart:
In conclusion, the implementation of ABM Inventory has enabled Toimart to achieve significant operational improvements, enhancing their competitive edge in the retail market through streamlined processes and data-driven decision-making capabilities.
Qualitative changes:
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Establishment of standardized processes for assortment and category management, leading to better inventory control and strategic decision-making.
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Improved transparency in inventory management, facilitated by ABM Inventory dashboard for tracking key performance indicators (KPIs) and visualizing data.
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Enhanced employee productivity as store managers can focus more on customer service and strategic initiatives rather than administrative tasks.
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Transition from 2-3 managers per outlet handling orders to a centralized approach managed by a single specialist, reducing labor costs and streamlining operations.
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Automation of order dispatch through EDI and email, enhancing speed and accuracy in supplier communications.