Coop Danmark, Denmarks largest consumer goods retailer, owns and operates five chains, which include some 1,140 mini-markets, low-priced outlets, supermarkets and hypermarket stores. Over recent years, competition has toughened for the biggest buyer of fast-moving consumer goods in the Nordic region. Copenhagen-based Coop faced the prospect of losing market share to new and established, country-wide discount chains. To counter this increased competition, the DKK 40 billion (5.4 billion) company wanted to continue offering a broad range of quality products and service at attractive prices while improving efficiency.
In order to optimise processes in the supply chain, Coop turned to JDA for its Advanced Store Replenishment by E3 (ASR) solution. This powerful tool has enabled Coop to optimise the flow of goods to stores by simplifying replenishment, forecasting and analysis processes. ASR also enables Coops personnel to more efficiently replenish items according to variables such as demand, season, order frequency, lead times, order quantities and service levels.
One of the advantages of ASR is simplifying the replenishment process, which has enabled store personnel to work more efficiently, stated Michael Djarnis, manager of supply chain development at Coop Danmark. We are now working on using the system to minimise our purchasing frequency, reduce the number of weekly deliveries within certain product areas and achieve optimal inventories in our warehouse. Were also looking to improve the effectiveness of other parts of the supply chain.
Coop Places Store Orders More Precisely Using ASR
Coop initially rolled out ASR in 87 Kvickly stores that offer an assortment of up to 14,000 fresh and frozen food, ambient and non-food items. Among the benefits that Coop received by deploying JDAs software solution:
- More Precise Ordering Ensures an accurate count of goods and improved efficiency of deliveries at the stores.
- Improved Service to Stores Confirms that shelves are properly filled by suggesting appropriate amounts of product to be delivered on the orders.
- Reduced Stock Gives store staff an enhanced awareness of on-shelf and on-stock needs, reducing the amount of unnecessary orders.
- Less Shrinkage Minimises wastage for stores, particularly in perishable foods.
Commenting on the reduced shrinkage, Djarnis stated, When we tested the system in our chilled foods categories in three stores, the replenishment accuracy of ASR helped us perceptibly reduce the amount of product that we must discard.
Djarnis says Coop has achieved benefits of ASR beyond its chilled food categories. ASR is also helping Coop more precisely replenish orders for the entire assortment. Coop is currently under way with the next phase of the implementation in more than 340 grocery stores with an assortment of up to 1,700 SKUs. Plans call for implementing ASR in the remaining stores operated by Coop over the next three years.
We can recommend ASR to other retailers. Our experience has persuaded us that both JDA and its products are very professional and reliable, added Djarnis. We will continue to look to JDA for additional solutions that may benefit our business.