Consulting for Retail (C4R) has successfully implemented a project to introduce a new system of forecasting of food and non-food categories in Magnum Cash&Carry

At the end of September 2020, the retailer Magnum Cash & Carry (Kazakhstan) successfully launched the first stage of the Symphony Retail GOLD Forecasting&Replenishment management system, the Symphony Retail Forecasting system, into productive operation.

The main tasks of the project were to improve the forecasting accuracy of the regular assortment of food categories and to launch forecasting for non-food categories for which no forecast had been made earlier.

The joint project team within a short pilot period achieved an increase in the forecast accuracy for food categories by 16.9% compared to the forecast after basic initialization. The process has been developed a technique improving the quality of prediction to be applied for industrial operation of the system on a permanent basis.

After the launch of the SR forecasting module, several indicators of low forecasting accuracy were identified, but among them the key one for us is the level of service of the supplier, which directly affects the level of representation on the shelf. One of the main business advantages of this solution for our company is the speed of calculating the forecast for the entire network, which is several times higher than the old forecasting system. It is also very important to be able to work with restrictions on the commodity groups and apply the settings in the network level and the individual objects that given the pace of growth of the network and the rapidly changing situation in the market allows you to make quick and reasonable decisions to order the optimal quantity of goods, - said Danil Lebedev, Project Manager Magnum Cash & Carry.

Over the entire period of the project, the forecast accuracy in the F&R system exceeded the calculations of the system used by 2.3% - 61.4% against 59.1%. The duration of the project was 5.5 months - from April to September 2020.

For us, this is the first stage of a project to optimize the product distribution chain, which includes further steps in planning promotional and product distribution as part of the digital transformation of our company. It is very important that both the forecasting system and the promotional planning and distribution systems are an integral part of Symphony Retail solutions, which greatly facilitates the implementation process, - said Maxim Bezrukov, project group manager.

Reference:
Consulting for Retail is an international technology consulting company. Provides services for the optimization of logistics processes, category management (assortment and display management), supply chain and human resource management through business consulting and implementation of IT solutions for retail.

Magnum Cash & Carry is the largest retail and trade network in Kazakhstan, one of the ten largest private companies in the country. The main activity is the sale of consumer goods. The chain owns 77 shopping malls of various formats (hypermarkets, supermarkets and small-format Magnum-express stores) in nine cities of Kazakhstan.