The strategic move of Masoutis in the Supply Chain through the Collaborative SCM solutions of Retail@Link

Need & Initiative

For Masoutis the high centralization was an imminent need of optimizing and organizing its productivity. The daily needs of fulfillment, the decrease of the stock levels/shortages and the high targets of Service Level, was a priority in order for the shelves at the retail stores to have products at any time.
The manual procedures of ordering, data entry and management of different order formats, corrections of errors, stock control and maintenance of product catalogues, deprived valuable time of the quick responsiveness to demand therefore sales were lost and the quality of the service of the final customer was decreased.

 

Challenges

o The daily management of 2600 skus for 262 stores on a 6-day basis with 5,8 millions of boxes transferred per year
o The peculiarities of ordering for the products of fridge (packaged and non-packaged), liquors, food, cosmetics, paper, detergents with very little lead time, frequency of deliveries and returns
o The building of trust with the suppliers for the confidentiality of data they share and the exchange of communication with the retailer through the service provider

Diamantis Masoutis SA, within the context of the optimum organization and the introduction of innovative models in the operation of the warehouse, applied a program of continuous development and automation of the supply chain making the most of the tools that helped to make the transition to the digital supply chain. Diamantis Masoutis SA, following the vision for continuous innovation and development, trusted Retail@Link for the flexibility / usability of the solution as well as the speed / accuracy of the data in the implementation of the cooperative model R@L VMI (Vendor Management Inventory) and the optimization of the procedures based on the below measurable benefits:

1. Visibility/Transparency for Diamantis Masoutis SA and the suppliers for the strengthening of their cooperation and the mutual trust between them for the common goals
2. Decease of the operational cost of stock replenishment
3. Decrease of the operational overload for Diamantis Masoutis SA and the suppliers

Retail@Link created for the supply chain of Diamantis Masoutis SA a hub of mutual communication with the suppliers for the elimination of the manual procedures of communication, management, data entry of the orders in the ERP of Diamantis Masoutis SA immediately and without mistakes, improving the stock levels, the fast routing and the just-in-time delivery of the orders with mutual win-win benefits through the whole supply chain.

Retail@Link receives on a daily basis the stock records of the warehouse of Diamantis Masoutis SA sends them to the 10 integrated suppliers in the service R@L VMI as well as with a proposed order by Retail@Link, based on the agreed safety stock per product/category/supplier. The suppliers evaluate the data and the order proposal and send to Retail@Link the final order. Retail@Link is responsible for the processing and the unification of the orders in 1 codified file that is sent and automatically entered in the ERP of the retailer who fills up his central warehouses with the respective stocks. The procedure is repeated on a daily basis under the responsibility and control of Retail@Link that uses supportive control procedures to ensure the unhindered operation of the system.
Additionally, Retail@Link, supported through the common digital environment of synergies, the procedures of Diamantis Masoutis SA of introducing new suppliers in the service R@L VMI as it is involved in all the stages of evaluating the prerequisites of their operational introduction to the solution.
The complexity of the solution was increased because of the peculiarity of the deliveries of the product categories handled by Retail@Link (products of the fridge, liquors, food cosmetics, paper, detergents) that require the quickest response to: lead time, frequency of deliveries, minimum returns.
As a result, Diamantis Masoutis made the most of the flexible SaaS solutions of Collaborative Supply Chain Management by Retail@Link, has full knowledge of the stock records until the previous night succeeding the balance between Service Level & Stock Availability. Through the solution R@L VMI there is full visibility/transparency of the ordering flow, strengthening the commercial relationships for the common achievement of the KPI’s and with the win-win benefits to be spread throughout the supply chain.

Within the context of optimization, the daily time consuming and costly manual procedures are modernized & automatized through the:
1. Automated dispatch of the stock records of the warehouse
2. Automated reception/dispatch/data entry/ control of the orders
3. Automated proposal of the optimum order based on algorithms & historical data
4. Overview & Management of the orders at a glance
5. Automated synchronization / updates of the suppliers’ product catalogues
6. Electronic management of the orders with automated control of the approved skus to be ordered in order to avoid mistakes
7. Automated data entry of orders
8. Statistical analysis
9. Report on the status of the orders
10. Archiving of the orders and historical data παραγγελιών

Through this cooperative and conclusive management tool, Diamantis Masoutis SA receives accurate real-time data that increase the competitiveness, improve the Route to market through the automated procedures securely, with confidentiality and credibility, having visibility of the whole replenishment line. The supplier knows his products and their availability, and the retailer knows his stock levels on a daily basis through thanks to the data exchange through the modern ordering & replenishment methods of the central warehouses in an automated way, daily, easily and with mutual benefits for Diamantis Masoutis SA and the suppliers.

Definition of requests

  • Setting of parameters
  • Minimum quantity of order/code or category & Definition of safety stock
  • Agreement of the time of the order dispatch by the supplier.

 

Preparation

  • Synchronization of the product catalogues of the suppliers with the stock records of the warehouse
  • Time plan

 

Implementation

  • Upload of the agreed parameters in the algorithm of the order proposals
  • Automations

 

Go live

Diamantis Masoutis SA made the most of the cutting edge technologies through the outsourcing solutions of Retail@Link and increased the operational optimization by skyrocketing the competitiveness. Through the common creation of a cooperative ecosystem, the benefits of the supply chain were multiplied offering value-added services & win-win methods of cooperation, but most of all an important tool of commercial collaboration.

Qualitative evaluation

  • Balance between Service Level & Stock Availability
  • Complete/Daily dispatch of stocks and order proposal in order to better respond to market demands without losing sales
  • Tremendous decrease of returns & operational cost
  • Efficient allocation of the storage areas
  • Strengthening of the cooperation with the suppliers
  • Transparency/Visibility with easy agreements on the replenishment operations
  • Increase of productivity through automated procedures
  • Decrease of visits to the stores for the stock replenishment
  • Improvement of the Route to market
  • Valuable tool of strategic decisions with mutual satisfaction from the solution
  • Cooperation with outsourced SaaS services & easy scalability
  • Introduction to the R@L community of >55.000 cooperating businesses through the B2B hub with immediate interconnection
  • Focus on the qualitative service of the final customer
  • Automated estimation of the optimum order based on the special needs of every collaboration/ product
  • Over time monitoring of the efficiency and continuously increasing competitive advantage through more accurate estimations

 

With the continuous support of Retail@Link the benefits Diamantis Masoutis SA acquired from the implementation of the collaborative solution R@L VMI based on cutting edge technologies, are shown below:

Quantitative results

Centralization before/after 50% /78%
Service level before/after 91,1% /95%
Stock days before/after 22 /17
Decrease of returns 30%
Decrease of operational time 70%
Savings (Human hours) 70%
Stores fulfillment 98%
Just in time deliveries 100%
Stock-out rate 1%
% Backorders 0,8%
Stock accuracy (approved skus/supplier) 100%
Lead time 2-3 days
Inventory turnover 21,2 times

 

Diamantis Masoutis SA aims at the evolution of the collaborative model and plans the transition to the 100% Digital Supply Chain without manual procedures for the end-to-end automation of all the processes  including the control of the stocks of every store and the respective order proposal per store based on historical data & seasonality. The scalability of the solution is estimated to increase tremendously the effectiveness of the operations as the benefits increase geometrically through the overtime monitoring of the results.

Mr Karaisaridis, Logistics Manager at Diamantis Masoutis SA, states: In the empowerment of the commercial relationships that are based on mutual trust and common achievement of goals, the trustworthy solution R@L Vendor Management Inventory (VMI) found the absolute implementation at Diamantis Masoutis SA as the mutual benefits are aligned with the vision of the digitalization and the constant improvement of efficiency. The solution of Retail@Link gives full flexibility in the central management with mutual visibility & transparency in the whole value chain. Diamantis Masoutis SA trusted the specialized service provider Retail@Link and made the most of the increase in valuable productive time that was reallocated in added-value services to suppliers & final customers.