Tackling Coronavirus’s Impact on The Canadian Grocery Retail Supply Chain with the Help of Supply Chain Operations Analytics – A Case Study

Mar 20, 2020

Engagement Summary

In a recent engagement, Quantzig collaborated with a Canadian supermarket to help them address the issues around supply chain disruptions due to the COVID-19 outbreak. In this success story, our supply chain analytics experts share insights on how COVID-19 is weighing on the global economy and how Canadian grocery stores can become more resilient by leveraging supply chain analytics to improve supply chain operations and diversify supply chains.

About the Client

The client is a well-known Canadian grocery retailer with a business scale of 10,000+ product categories, 900+ brands, and more than 1 lakh products on offer. Catering to a huge customer base, the client was recognized as one of the best grocery stores in Canada known for its prompt services and customer support initiatives.

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Business Challenge

With COVID-19 being declared a global pandemic, the Canadian grocery retailer witnessed a sudden surge in demand for daily utilities and groceries due to which they faced several challenges such as inventory shortages, warehouse discrepancies, and out of stock scenarios.

With the rise in demand, the client was looking at improving its supply chain operations by ensuring the on-shelf availability of essential products. Considering the multiple complexities involved, achieving their ambitious targets seemed to be an uphill task that required a deeper understanding of customer buying patterns and advanced supply chain operations analytics capabilities to undertake correction and realign supply chain operations in the shortest possible time. This is when the Canadian grocery retailer approached Quantzig looking to leverage its supply chain analytics capabilities to drive improvements in supply chain operations.

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The challenges faced by the Canadian grocery retailer included:

  • Disparate, siloed systems for BI, data visualization, and analysis
  • Lack of synchronization between supply chain planning and execution
  • Limitations in supporting supply chain initiatives and platform capabilities
  • Irregular reviews of inventory stock levels, causing frequent stock-outs
  • Lack of flexibility in the supply chain network and distribution footprint, that made it difficult for decision-makers to prioritize between cost-to-serve and customer satisfaction
  • The high lead time associated with the analysis of unstructured supply chain data sets

Supply Chain Operations Analytics Engagement: Key Deliverables

  • Reduce inventory stock-outs and deliver growth
  • Improve inventory forecast accuracy and eliminate wastage
  • Conduct root cause analysis for stock-outs across the nodes
  • Support reconfiguration of the supply network by identifying all feasible network scenarios
  • Reduce cost-to-serve and improve service levels

Supply chain operations analytics helps you act on data-driven insights to reduce cost-to-serve and improve service levels. Request a free demo to learn more about its benefits.

Solution Offered

By collaborating with Quantzig the Canadian supermarket giant embarked on a supply chain operations transformation journey that revolved around catering to the needs of its customers to improve turnover rates using a scalable analytics-driven solution. To help the client address their challenges the supply chain operations analytics experts at Quantzig adopted a comprehensive approach that led to a complete overhaul of the existing supply chain management system and betterment of supply chain operations.

The initial stage of this supply chain operations analytics engagement revolved around statistical analysis that leveraged exploratory techniques and predictive modeling to forecast product demand at a large scale. The use of inventory optimization models further enabled the client to devise a robust strategy for addressing complex supply chain issues with multiple constraints. By performing a detailed analysis of factors impacting inventory stock-outs, our supply chain analytics experts also highlighted slow-moving and low-margin SKUs that were negatively impacting inventory costs. This, in turn, helped the client to rationalize 30% of the SKUs and achieve a 55% reduction in inventory costs.

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Business Outcome

Our supply chain operations analytics solutions enabled the Canadian grocery retailer to identify an additional opportunity to redeploy 15% of the assets held at the point of sale and achieve savings by reducing CapEx and cost to serve.

The benefits also included:

  • Streamlined supply chains & improved business agility
  • Reduced supply chain shock levels
  • Re-defined stock replenishment plans
  • Improved supply chain operations management & customer service levels

Why Choose Quantzig’s Supply Chain Operations Analytics Solutions?

With deep-rooted expertise in carrying out advanced supply chain analytics engagements and helping leading businesses from across industries, Quantzig today stands out as a premier supply chain analytics solutions provider. By collaborating with its clients, Quantzig develops and delivers innovative business models and analytics-driven insights to address the unique supply chain requirements of businesses.

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