Podrushka is a Moscow-based retailer with over 35,000 SKUs and operating 145 stores throughout Europe and China. With products covering personal care, cleaning, cosmetics, perfumes and jewelry, Podrushka selected Veltio to implement Oracle RDF and Veltio Allocation, Packing and Execution (APX) to help achieve its goal of becoming a leading drugstore in their markets.
- Forecast accuracy at SKU-week-store after deployment:
- 75% with promotion
- 90-95% without promotion
- Decreased overstock levels by as much as 13-15%
- Increased employee efficiency by 50%
- Decreased warehousing overstocks from 3-4 months to less than 3 weeks.
- Our Science Team built a hands-off, automated forecasting solution that will greatly improve margins and sell-through
- Increased revenues due to improvements in forecast accuracy for promotional and non-promotional items as well as reduction in out of stocks over promotion periods.
- Veltio’s deployed systems reduce losses, including write-offs due to expiration date, errors in orders and inefficient replenishment processes
- Veltio has deployed Oracle RDF and Allocation, Packing and Execution (APX) in multiple projects.
- Veltio provides ongoing Long Term Support services for Podrushka .
- Veltio created a solution to accurately calculate Podrushka’s lost sales
- Veltio implemented a custom, automated replenishment system as an add-on to the Oracle RDF configuration. APX is responsible for the calculation of recommended order quantities and the export of these orders to their transaction system
- The systems produce casual forecasts based on a combination of price and promotional forecasts for Podrushka’s unique business trends
Sainsbury’s Supermarkets Ltd – the United Kingdom’s second-largest supermarket chain – found themselves facing inefficiencies. With over 2,000 locations, Sainsbury’s used multiple applications to provide their forecasting models. In order to fulfill their vision of making Sainsbury’s “great again”, they sought Oracle’s Retail Demand Forecasting solution (RDF) combined with Veltio’s system integration.
- Planning/executing design workshops with Sainsbury’s core IT team
- Preparation of detail designs for functional requirements
- Creation of a solution to address business and to-be process flows
- Preparation of technical designs/architecture, testing plan and user documentation
- Testing and User Acceptance training prior to roll-out
- Dinosol faced a myriad of logistical challenges and liquidity constraints caused by inventory inefficiencies.
- Veltio was chosen for integration of Oracle Retail Demand Forecasting and Oracle Replenishment Optimization
- A custom, innovative solution was created by Veltio consultants for Dinosol’s unique pain-points.
- The average value of inventory on hand was reduced by $25 million within 6-months, releasing liquidity for other investments.
- Fresh & Easy, a US based grocery chain, was in the midst of an acquisition and with their planning systems set to change they chose Veltio to integrate Oracle RDF, AIP and RO.
- Specifically configured inventory tracking system was created to meet Fresh & Easy’s needs.
- Customized intraday procurement system was created.
- Planning/executing design workshops with core Fresh and Easy team
- Multi-phased project stream implementation with full coordination and communication with key stakeholders
- Ability of creating their own “reports” by manipulating their views
- Enhanced visibility into different hierarchies by product and location.
- Improved workflows with component and forecasting replenishment.
- Superior logic and significant upgrade over their previous applications in terms of seasonality.
- Enhanced feature to flag out stock more appropriately and grouping by casual and distinct variables to provide more accurate uplift and forecasts.
Tesco chose Oracle Retail Demand Forecasting as they further emphasized a promotional-based strategy. Veltio was chosen as the system integrator of choice due to Tesco’s need for a combination of strong consulting leadership with best-in-class technology.
Veltio has served as partnered with Tesco on multiple projects dating back to 2005. Veltio’s consulting team supplied Tesco with a unique RDF solution driven by science and engineered for maximum ROI.
- Consultants lead the investigation of adding additional causal factors in accurate forecasting
- Principal Consultants documented and redefined exception and alert management requirements
- Principal Consultants participated the creation of new business processes to further their promotional strategies within RDF
- The data flows into and out of RDF were cleaned and adjusted for maximum use in the confines of Tesco’s new organizational strategies. This included the identification and creation of data that was not currently available or captured.
- Technical Consultants participated in the resolution of current technical issues as well as the set up and support of DBMS
With over $5 billion in annual sales, 25 own retail brands and 40 franchised brands in over 20 countries in the Middle East, Landmark Group has a complicated supply chain and several challenges in their planning business processes.
Since 2010, Veltio and Landmark have a strategic relationship for the rollout of multiple Oracle Planning and Optimization solutions, from MFP and AP/SPO to Forecasting, Allocation and Replenishment.
- Veltio has implemented MFP, SPO, RDF, LP and Veltio APX (Allocation, Packing and Execution) at Landmark in multiple projects since 2010
- Veltio’s Consultants have worked together with Landmark to improve their supply chain business processes
- Veltio has collaborated on the solution architecture of multiple complex systems
- The Veltio team has developed and optimized several deployments that are some of the largest RPAS installations in the world (over 3 million SKUs, over 2000 stores)
- Sportmaster & O’Stin, the largest sportswear chain in Russia intended to maximize each store’s sales potential.
- They chose Veltio to share their expertise in consulting and integration of Oracle Assortment Planning.
- Recommendation / creation of a solution to cluster stores based on climate, store space and performance.
- Reorganization / creation of placeholders based on module’s traits (brand, intake/exit date and store allocation)
- Determine total buy quantity per style-color based on attribute matching by using client data.
- Decrease by 65% in required labor due to improved automation.
- ROI boost upon completion of modules.
- Automated placeholder to historical style-color matching based on user selected attributes.
Sterling Jewelers is one of the largest jewelers in the retail industry. With over 1,400 stores, and high SKU levels spread across many brands, Sterling was in need of improving their Supply Chain platforms.
Veltio was chosen as the system integrator due to our unparalleled experience in the configuration and deployment of Advanced Inventory Planning as well as our ability to create additional, custom configurations for new product and promotional forecasting that integrate seamlessly with Retail Demand Forecasting (RDF).
- Our best-in-class development team provided many custom configurations and add-ons to account for Sterling’s needs for additional reporting, promotional measurement and new item forecasting
- Veltio implemented a new science-driven store splitting strategy to account for low sales velocity
- After several weeks of design with Sterling’s stakeholders, Veltio developed a solution that increased forecasting accuracy for e-commerce and Bricks and Mortar
- Veltio Consulting created a process to account for differing promo strategies between business units
- Veltio Consulting assisted with the creation of a new Buy-Out process to further align their business with the AIP.
- Veltio customized workbooks to account for inventory which is not available for immediate distribution
Forever 21 Challenge
With over $4 billion in annual sales and 750 stores globally, Forever 21 saw a growing need for an intelligent assortment planning system. In order to efficiently and accurately project assortment needs across the globe, and via e-commerce, Veltio was chosen to implement a solution for Assortment Planning and Size Profile Optimization.
- Consulting team provided analysis of As-Is and To-Be processes to identify gaps and create plan for full end-to-end solution
- The system generates optimal profiles of size distribution and prepacks by merchandise area for each store
- Veltio Consultants improved Forever 21’s change-readiness strategy
- Veltio improved the cleansing process for increased forecasting accuracy
- Integration provided scalable and flexible modules to allow for exponential growth
- AT&T found themselves sending each of their 2,200 + retail locations with the national assortment.
- Hoping to greatly diminish their product obsolescence, they chose Veltio for integration of Store Clustering which was later extended to include Assortment Planning.
- Deployed a system that provides the ability to plan assortments for a future time period while selecting item performance periods from any range of time periods.
- Developed a functionality to see optimal number of performance groups for each cluster scheme
- Developed additional end-user functionality that allows flagging items as mandatory or the assignment of specific items to specific clusters and floor resets
- Enabled AT&T end users to have different and optimal assortments by cluster
- Ability to see actual data indicating which items have performed well historically within selected clusters.
- Ability to create test clusters for new products to evaluate product performance earlier and maximize national expansion.
Disney Stores Challenge
Disney Stores saw a growing need to integrate their North American and European RGBUs Merchandise Financial Planning systems. While they desired one instance of a planning system, Disney Stores required the ability to modify certain aspects of the system based on regional need.
Additionally, Disney’s Integrated Retail department, who works directly with Merchandise Licensees, was seeking to improve their financial reporting, plans and metrics. Gathering data from multiple sources and applying this data effectively was proving increasingly difficult.
Disney chose Veltio to implement Merchandise Financial Planning due to our global footprint, a history of implementing complex, multi-continental installations and reputation for retail planning innovation.
- Veltio created one instance of MFP for two Regional Business Units (RBUs): North America and Europe
- Disney’s MFP system can support the use of a snapshot of their prior forecast to retain /compare with current plans
- Veltio’s solution provided the ability to edit elapsed period sales data to accommodate for corrected information from retailers
- Veltio delivered the ability to plan and / or selectively apply a “Build” measure, which is a factor increase/decrease over the previous period (month, qtr., year)
- Veltio delivered a system that updated elapsed periods in the current plan with actuals
- Veltio assisted Disney in implementing a process to initialize new franchise property plans with sister property sales history.
Grupo Eroski (Eroski) is a large grocery retailer in Spain, operating over 1,000 multi-format stores. Their products include food, bakery, pharmaceuticals, household items, general merchandise, textiles, electrical appliances, perfumes, educational items and sports goods. Looking to the future, Eroski chose Veltio to implement Category Management in order to improve their category planning process and improve financial visibility outside each category.
- Tie the company financial plan to the store merchandise
- Create a clear, consistent planning process across each categories
- Guide Category Managers in creating the proper product assortment for the different store locations while retaining localization
- Create transparent category financial plans that give visibility to multiple management positions outside the Category Management role
- Struggling grocery retailer facing bankruptcy needed to get a handle on their inventory
- Company needed to reduce stock to optimal levels and minimize inventory carrying costs while not negatively impacting their in-stock levels
- Its goal was to reduce eight days of supply chain stock within three years
- Veltio was asked to install and fine tune Oracle’s Replenishment Optimization for their specific needs. Veltio augmented Oracle’s replenishment optimization with additional forecasting and replenishment functionality to it —within an 8-month time window
- This company’s pain points needed an innovative, not out-of-the-box solution. Veltio created from scratch a process that would be easy for the business to understand but provide a more accurate picture of their demand to drive replenishment optimization
- Within 6 months of going live on Veltio’s answer to Replenishment Optimization, the client saved $25M on inventory costs, allowing them to fund further installations for even greater savings and pulling the company away from potential bankruptcy
- Put them back on strong financial footing