Major retailer signs up for smooth forward-ordering process

A Dutch supermarket chain replenishes most of its stores based on advanced forecasts. But when it comes to limited-time offers, such as seasonal products and promotions, each store has to pre-commit to individual quantities separately. To automate this complex process, we developed a Mendix application that continuously synchronises data with SAP S/4HANA.

What was the challenge?

Retailers want a simple but reliable replenishment system that tends to be automated and uses advanced forecasting and fulfilment processes. For limited-time offers, however, the data required for accurate sales projections is often unavailable. Each store decides for itself which items to receive and in what quantities by forward-ordering them in advance. Stores base these pre-commitment decisions on historical data, trends, sales figures for similar items and advice from head office.

Forward-ordering poses a challenge, not least because it often takes place months before the actual delivery. The limited shelf life of perishable goods adds to the complexity. The process used by this particular retailer also included a number of manual steps, which increased the chance of error, and staff found the process complex and lacking in transparency. These challenges impinged on their core responsibilities and placed additional demands on their time.

What solution did we deliver?

Stores now have a dedicated Mendix application where the items available for forward-ordering are grouped and logically organised. This is important because in each store different teams handle different product categories. In addition, staff now see only the products and delivery weeks that are relevant to their own store. All data is retrieved directly from SAP: product details, photo(s), retail price, shelf life and comparable items from the previous year, which helps project how well an item will sell.

Under the bonnet, the entire process is streamlined and fully automated. Head office directly enters items, delivery weeks and other information into the Mendix application. There is also the option to exclude certain stores from forward-ordering items. The application sends this data to SAP, which matches items with stores. SAP then communicates each store’s deliveries to the application. Forward-ordering is now just a matter of ticking a box.

Where did the complexity lie?

The biggest challenge involved matching the list of products with the available delivery weeks for each store. This requires a continuous exchange of data between the Mendix application and SAP. And we are not talking about a small amount of data: because the supermarket chain has hundreds of outlets, each store’s available delivery weeks require thousands of lines of data. Every line needs to be matched with the product range to determine the available delivery times for each item per store.

Each store is then shown the available delivery weeks for an item on its own screen in the application. When a store forward-orders a particular item, this information is immediately passed on to SAP. This means that the retailer now always has a real-time overview of forward-ordered items. Head office can place orders with the different suppliers in the appropriate quantities, which will then be delivered to the stores at the designated times.

How did we make the difference?

The project was executed in two phases. First, we built a minimum viable product (MVP) to gather user feedback quickly and easily. The product range was then uploaded to the MVP, while the data quality was immediately verified. Second, a file containing the available delivery weeks for each store was then exported from SAP and uploaded to the application. The configuration of both files allowed the application to match items, individual stores and available delivery weeks automatically.

The MVP enabled store employees to forward-order items without requiring additional manual steps. This was a significant improvement. While the company incorporated the new application into its operating processes, we worked to automate the uploading of the two data files. And we were able to instantly incorporate user feedback and other issues that came to light during the second phase into the final Mendix application. This ensured that the project moved forward efficiently and swiftly.