Major Home Improvement Retailer Concurrent Planning of Inventory, Fulfillment & Transportation
Retail
2000+ Stores
800+ Vendors
500,000 Shipments/Month in NA
Goals
Minimize the total cost of the supply chain network while ensuring SKU x Store availability targets are met
Determine optimal order quantity by considering trade-offs between inventory holding and transportation costs
Challenges
Conflicting KPIs among functional silos: store operations planning high availability through more frequent shipments vs. logistics reducing costs through more frequent FTL shipments vs. inventory management reducing inventory investment in the network
Fixed order schedules and static transportation planning limiting the ability to respond to seasonal or structural changes
No quantitative basis for network-wide improvement initiatives
Diverse SKU portfolio and vendor capabilities requiring different operating models and different planning parameters
Benefits
Internally consistent planning parameters related to order frequency, transportation mode, flow path, and availability targets for each SKU
What-if analyses on the transportation cost and inventory investment to meet availability targets
Total Cost to Serve optimization with explicit trade-offs among inventory, transportation, and store operations
Savings in annual inventory and transportation costs while maintaining store shelf availability
$ 105 M
Recurring inventory & transportation cost savings
Solutions
“Solvoyo provides strategic and tactical planning support while fulfilling our operational planning needs as well. We can seamlessly integrate with their platform and use their recommendations to minimize our costs and maximize efficiency. Solvoyo succeeded in automating the Supply Chain Planning at MOPAS in a very short time.”
Mahmut Ulku, CIO, MOPAS
