Prisma Peremarket, a well-known Estonian grocery retail brand operated by SOK, has been a staple in the Estonian retail landscape. With 13 stores and a wide range of products of more than 70,000 SKUs, Prisma Peremarket prides themselves on providing a smooth shopping experience for their customers. However, like many retailers, Prisma Peremarket faced challenges in their operations that impacted their ability to deliver the best possible service.
One of the major challenges Prisma Peremarket encountered was around deliveries arriving at stores unevenly on weekdays. This led to bottlenecks in shelving that subsequently translated into availability issues as products could not be shelved in time during peak weekend shopping periods. The substantial peak in deliveries on Fridays, accounting for a significant portion of their weekly deliveries, created operational imbalances that intensified the availability issue, as labor hours were distributed evenly throughout the week.
Events influencing demand, such as holidays, further exacerbated the challenges, causing even more unbalanced deliveries and impacting overall store efficiency. Additionally, the need to even out deliveries and manage workforce hours more effectively was critical for Prisma Peremarket to maintain a balanced workload and ensure a consistent consumer shopping experience.
Prisma Peremarket’s existing processes were reactive rather than proactive, leading to inefficiencies and challenges in workforce planning. With a small team of employees handling replenishment operations, there was a clear need for automation and optimization to improve accuracy and speed in managing deliveries and product availability.
Optimizing operations: Implementing RELEX at Prisma Peremarket
Prisma Peremarket selected RELEX in 2020 to enhance the accuracy of their demand forecasts and to automate replenishment. Following a successful deployment of the RELEX forecasting and replenishment solutions, Prisma Peremarket began exploring how RELEX could further automate and streamline tasks to enhance their store operational efficiency. In 2023, Prisma Peremarket chose to expand their use of RELEX to include capacity optimization capabilities.
The implementation began with a comprehensive evaluation of Prisma Peremarket’s existing processes and challenges. Working closely with RELEX, Prisma Peremarket identified the key areas for improvement and tailored the implementation plan to address these specific needs. One of the primary objectives of the implementation was to smooth the flow of deliveries throughout the week in order to schedule their store personnel more efficiently. Another key focus was to enhance product availability on store shelves.
Throughout the first phase of the process of implementing the capacity optimization solution, which began in early 2023, Prisma Peremarket and RELEX worked closely together to ensure a smooth transition and minimal disruption to daily operations with a step-by-step rollout across each of their stores. over a six-week timeline. The successful implementation has transformed Prisma Peremarket’s store operations, setting the stage for continued growth and success in the future.
Transforming retail operations: Prisma Peremarket’s success with RELEX
Prisma Peremarket’s collaboration with RELEX yielded substantial results, optimizing their store operations, and enhancing the overall shopping experience for their customers. By implementing capacity optimization solutions, Prisma Peremarket achieved remarkable improvements in several key areas.
One of the primary goals was to address the substantial peak in deliveries on Fridays, which accounted for a significant portion of their weekly deliveries.
Their highest-performing store experienced dramatic improvements, with Friday deliveries decreasing from 31.4% to 22.6% of weekly deliveries. This significant shift was observed across all locations, leading to a notable reduction in delivery peaks. This change was more than just a logistical adjustment; it fundamentally transformed store operations and the shopping experience. By scheduling the arrival of non-perishable goods earlier in the week, stores capitalized on quieter periods for shelving these items. This strategic timing meant that during the store’s busiest hours, personnel were not occupied with restocking non-perishable goods, thereby avoiding disruptions to the customer shopping experience and ensuring better product availability.
Moreover, this approach allowed store personnel to dedicate more time to managing perishable goods during peak hours, ensuring these items were promptly moved from the back room to the shelves. The result was a dual benefit: greater efficiency and an enhanced shopping experience due to improved product availability. Ultimately, this strategic realignment of delivery and shelving schedules ensured a more balanced workload for the staff, leading a smoother operation overall.
Prisma Peremarket has advanced their capacity optimization efforts, particularly during peak seasons like the winter holidays, by implementing limit-based capacity optimization and inventory planning. This approach allows for strategic, early deliveries of products in anticipation of increased demand during events like Christmas and Easter. Recognizing the challenge of substantial delivery volumes and timing challenges with supplier holiday closures, Prisma Peremarket, in collaboration with RELEX, has optimized their supply chain to smooth deliveries over a period longer than the usual week, ensuring products arrive two to three weeks in advance.
This limit-based strategy also involves identifying which products can be delivered early and which cannot, to avoid storage congestion and operational slowdowns. For instance, large pallet items and frozen goods, which require significant storage space or have limited freezer capacity, are scheduled closer to the event or holiday to maintain efficiency and store functionality. This approach underscores Prisma Peremarket’s commitment to operational excellence and their trust in RELEX to navigate seasonal bottlenecks effectively. Overall, Prisma Peremarket’s work with RELEX has not only addressed their initial challenges but has also transformed their store operations, paving the way for enhanced efficiency, improved customer satisfaction, and sustained growth.