Inventory Optimisation, Demand & Replenishment Planning 3

Client: Office Supplies Retailer

The client was looking to reduce and optimise inventory in Retail Stores and Distribution Centres, while improving in-stock position and service levels. The client also wanted the following outcomes:

  • Creation of standard, inventory planning processes across product category teams
  • Reduced manual ordering and store ordering
  • Improved forecasting using advanced forecasting techniques
  • Developing standard demand planning and replenishment planning processes across disparate product categories
  • Bottom up demand planning for 27,000 SKUs across 160 locations
  • Educating Inventory Team Members on the importance of demand planning and best practice inventory management
  • Remove the ability for stores to make unrestricted stock requests
  • Reduce inventory team members’ replenishment planning workload
  • Poor data quality and inconsistent maintenance practices

A project was commissioned with GRA to:

  • implement an advanced inventory planning system (GAINS)
  • develop a nightly processing schedule to refresh all data and recalculate forecasts and replenishment recommendations
  • configure user screens and custom fields for multiple roles
  • educate and train the business in best practice demand and replenishment planning processes
  • develop standardised demand and replenishment planning processes for all product categories
  • mentor inventory team members in demand planning and inventory optimisation
  • educate inventory support team on GAINS reporting tools and management of new store requirements
  • measure and analyse impact on inventory and key performance metrics during the Go Live period
  • educate system administrators to manage ongoing support
  • Overall 6.6% reduction in inventory across the network in 3 weeks
  • 18% inventory reduction in Distribution Centres and Customer Fulfilment Centres in 3 weeks
  • 11% Reduction in Excess Stock for ranged lines
  • No negative impact on customer service levels or in-stock position
  • 40% reduction in the number of lines projected to have stock-outs
  • Common demand planning and replenishment planning processes across all categories
  • Positive user experience, with inventory team members working independently within a few weeks
  • Improved data quality and consistency more closely managed by the merchandise team


Download this Case Study


"GRA provided us with the vision on what an advanced inventory management system could deliver for us, along with the benefits. To date the benefits are being delivered in line with the business case and the user experience is excellent. GRA, throughout the project, acted in an very professional manner and delivered on our expectations."

– Chris Wigg, Group Planning Manager, The Laminex Group

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)