The footwear manufacturer company RALF RINGER and the developer of business applications Cifra Project have solved the optimizing task of replenishing the commodity stock in company stores.
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One of the largest footwear retail networks RALF RINGER has more than 130 stores and several tens of thousands of trade items. The RALF RINGER employees daily calculated optimal supplies using the functions of Microsoft Excel and manually input into the system the orders for replenishment. A new concept of stock management assumes usage of specialized tools for performing automatic calculations and comprehensive analysis of calculation results.
As result of successful implementation of the solution “Cifra Project: Replenishment of Stores” it was already possible in two months to calculate with high accuracy the replenishment of stores and to do this daily automatically within minutes. The purpose of the system is to ensure maximum completeness of assortment in the stores. Solution “Cifra Project: Replenishment of Stores” consists of a data storage uploaded with data for calculations and calculation engine and the system of OLAP-reporting controlled by RALF RINGER analysts.
In the course of the project the experts of Cifra Project proposed to complicate the rules for calculation of store replenishment consisting of three calculation blocks: calculation of the composite rating of replenishment, calculation of replenishment limit and replenishment calculation.
The developed logistics intelligent system is able to relieve an expert specialist of routine tasks of maintaining auxiliary calculations in Microsoft Excel files to calculate replenishment for each commodity item in each store taking into account the given parameters. An expert controls calculation processes by changing the startup parameters, may get several variants of calculation and choose the best out of them. For calculating each variant not more than 10 minutes is spent after which the experts review the results of machine calculations in reports and make a decision on distribution of available stock to the stores.
Director of Logistics in RALF RINGER considers: «The digital logistics creates a new quality of analytics and allows making decisions aimed at creation of advantages for buyers. For example, as a result of optimizing the replenishment of trade divisions the width of assortment grew by groups that have high sales in a specific period of time, a term of availability of scarce goods increased at locomotive trade points, the level of stock in the stores lowered due to intelligent calculation of demand. There appeared an opportunity to react in a flexible way to specific needs of the stores and their regional conditions.»
Further on, the intelligent logistics system may be developed, for example, by adding new calculations towards marketing and production, and by adding new components of Artificial Intelligence if application of mathematical methods of forecasting is required.
About RALF RINGER Company
The group of companies RALF RINGER is one of the largest Russian producing company and retailer of footwear, one of the leaders on the national market. The company produces footwear for the entire family exclusively from natural materials and sells its products within middle price segment.