DinoSol Implements Oracle Retail, Reduces Inventory Costs By Millions Of Euros
DinoSol has implemented Oracle Retail Advanced Inventory Planning, completing the roll-out of Oracle Retail applications to help optimize inventory management within the supply chain and improve profitability across its four formats in Spain and the Canary Islands.
As a result of the Oracle Retail deployment, DinoSol has reduced stock levels, achieving savings of €21.8M Euros in 2011 and €25.2M Euros in the first quarter of 2012. These improvements in working capital have enabled DinoSol to reinvest in its organization, invest in new stores and introduce new projects to drive further benefits.
“The power of Oracle Retail lies in the ability to plan for the future. By implementing Oracle Retail inventory planning, we have enabled a synchronized supply chain and our customer demand drives that supply chain,” said Jorge Delgado, Director Supply Chain, DinoSol.
DinoSol has previously implemented Oracle Retail Replenishment Optimization and Oracle Retail Demand Forecasting to meet targeted inventory levels and achieve desired customer service goals within its HyperDino and SuperSol hypermarkets and supermarkets, Cash Diplo cash and carry and the convenience store chain, HyperDino Express.
With a strategy to competitively differentiate its offering by focusing on fresh produce and offering more localized product assortment, DinoSol recognized the importance of optimizing supply chain operations and facilitating a more coordinated movement of inventory throughout the distribution network.
To help achieve this goal and reduce its stock and associated costs to optimal levels, DinoSol invested in Oracle Retail Supply Chain Planning and Execution applications in February 2010.
Implementing Oracle Retail Advanced Inventory Planning is the final element of this project which has been supported since December 2010 by Logic Information Systems, a Gold level member of Oracle PartnerNetwork (OPN).
With Oracle Retail solutions, DinoSol is optimizing its business to plan, forecast and replenish more effectively to meet the many variables in consumer demand across its multiple formats and the geographical region.
The implementation has delivered visibility across the supply chain, connecting the head office with its eleven warehouses, 440 stores and multiple suppliers, to create an optimal inventory balance that meets defined revenue, profit and service level objectives. This is helping DinoSol to meet its goal of reducing eight days of supply chain stock within three years.
Another objective was to forecast future sales more accurately, rather than relying on historical data to predict consumer demand, and the Oracle Retail applications are now enabling DinoSol to forecast up to nine weeks ahead across the supply chain operation.
Additional benefits have resulted from more centralized and automated handling of replenishment, traditionally done by individual stores, now being managed at head office, including improved financial reconciliation and better allocation.
DinoSol expects Oracle Retail Advanced Inventory Planning to deliver further benefits around time-phased inventory replenishment by item, store, warehouse and channels in due course.
“DinoSol’s investment in Oracle Retail’s experience platform is helping to optimize inventory control and supply chain operations, and enable actionable insight that drives smarter decisions around profitability, performance, demand and the customer experience,” said Mike Webster, Senior Vice President and General Manager, Oracle Retail.
“Working in such a demanding project has been a very rewarding challenge for everyone involved. The DinoSol team has shown a strong business knowledge and expertise, which was crucial to improve the supply chain and steer the project in the right way. The delivery was completed on time and with business benefits closely measured by the DinoSol board. The entire team should be proud of their achievements and it is great to be part of this project,” said Pedro Silva, VP Europe and Latin America, Logic Information Systems, Inc.