Case Study

Case Study: A North American Grocery Chain Adopts Transparent Allocation And Replenishment

October 16th, 2007
George Lawrie, Vice President, Principal Analyst
George Lawrie Vice President, Principal Analyst
With contributors:
Sharyn Leaver , Elisse Gaynor

Summary

A leading grocery chain used physical reorganization, reassignment of responsibility for inventory, and a deeper understanding of the relationship between service levels and inventory to tackle vendor reliability, overtime costs, and stock-out issues. Despite heavy seasonality, the chain was able to increase service levels to a constant and impressive 96% availability at the distribution center (DC), to reduce inventory balances by 10%, and to increase revenues by 6%.

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