API is one of Australia's leading pharmaceutical distributors and growing health and beauty retailers
Parent company of Priceline Pharmacy, Soul Pattinson Chemist, Pharmacist Advice and Clear Skincare Clinics
Services: wholesale product delivery, retail services, marketing programs and business advisory services
More than 420 stores
Founded in 1910, listed on the ASX since 1997
Over 3,000 employees
Revenue of more than $3.5bn AUD
Further information: www.api.net.au
API: Improved demand cognizance for enhanced forecasting
Inconsistent and unrealistic forecasts led to excess inventory.
To correct the inherent problems, API decided to revamp the demand signal which was being fed to SAP UDF application.
Inconsistent and unrealistic (inflated) demand signals unsuitable for statistical analysis
Need for manual intervention to offset inflated demand
Overforecast situations despite manual interventions
Erosion in trust of system/applications by business
Identification of the demand forecast
The project involved both retailsolutions and API teams carrying out extensive analysis of demand signals to arrive at possible combinations of demand quantity and demand dates that can be used to arrive at a demand forecast that fits API business processes.
Inventory reduction in excess of $8.7m AUD driven by an annual reduction in intolerable forecast-driven overstocks
Improved the service level for A&B products to 99.5% using UDF statistical smarts
Dramatic upturn in forecast accuracy (weekly error reduction of up to 10%)
Improved responsiveness to customer demands/trends
We extremely value retailsolutions for their expertise in helping organisations like ours to maximise the return on investment from SAP CAR and SAP F&R implementation.
We are continuing an ongoing engagement with them to achieve further system efficiencies.
Operational Excellence Manager –
The store apps we deployed together with retailsolutions were received so well that store managers and franchisees have actually called me to tell me how happy they were with them and how much easier it makes their lives.
Usually, they are a bit harder to please.
Project Manager, Coop Norge
Thanks to Neptune based store-apps from retailsolutions, we massively simplified inventory management, increased automated replenishment with SAP F&R and reduced costs. Stores now have increased availability, reduced waste and more time to serve customers.
Program Manager, Coop Norge SA
Significantly improved shelf availability and thus increased sales, while reducing inventory, personnel costs and markdowns. At shop level alone, inventories were reduced by 8%, with corresponding effects on capital costs and spoilage.
CIO Coop Switzerland