Retailer cuts costs by a fifth
Owner of Spar uses software to reduce wastage by 10 per cent
Food wholesaler and retailer Henderson Group has cut costs by 20 per cent and reduced wastage by 10 per cent using warehouse replenishment software.
The owner of Spar convenience shops uses the software to manage its 4,500 grocery lines, 1,100 fresh food lines and selection of non-food lines at three warehouses.
The automatic replenishment process enables Hendersons’ buyers to access current information and accurate figures, allowing them to plan promotions effectively.
Henderson’s operations team can also plan deliveries more efficiently, enabling it to increase stock in-store, reduce overstocks and improve safety stock levels.
‘Previously, our buyers did everything manually,’ said group IT director Andrew Logan. ‘We have achieved significant time savings so our buyers have more time to focus on the profitability of product lines.
Additionally, Henderson has achieved greater productivity across the business, improved product availability in retail locations and enhanced supply chain visibility from the warehouse to store.
The retailer has exceeded its return on investment targets of reducing inventory and freeing up warehouse space by 10 per cent.
‘We have experienced savings as high as 20 per cent,’ Logan added. ‘It has enabled us to reduce wastage by 10 per cent and increase service levels by one per cent.
‘We have also seen a one per cent increase in availability of products at the warehouse level, which has had a positive effect at the retail level too.’
Henderson Group chose JDA Portfolio’s Advanced Warehouse Replenishment (AWR) software.
It will soon start using the software to manage the complex replenishment needs of its fresh and frozen food lines. Logan says Hendersons will also look to JDA to help it improve other operations such as store replenishment and space planning.
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