New planning applications help Spanish grocer enhance inventory management and improve performance

New planning applications help Spanish grocer enhance inventory management and improve performance

DinoSol, the Spanish grocery retail group, has selected Oracle Retail planning applications as part of a strategic initiative, which the retailer expects will help improve performance and profitability across its four store formats.

Formerly part of Ahold Spain, the now Permier- owned DinoSol operates HiperDino hypermarkets and supermarkets in the Canary Islands; SuperSol hypermarkets and supermarkets in mainland Spain; cash and carry chain Cash Diplo; and the Canary Islands convenience store format, HiperDino Express.

DinoSol identified Oracle Retail Demand Forecasting, Oracle Retail Replenishment Optimisation and Oracle Retail Advanced Inventory Planning as key to helping it to reduce stock to optimal levels and minimise inventory carrying costs.

Streamlined stock holdings

Oracle added that its solutions can offer the capabilities to improve management of the grocer’s replenishment and forecasting processes and help it to meet its goal of reducing eight days of supply chain stock within the next three years.

The integrated application suite is also anticipated to support the success of the company’s new strategy – to focus on adapting product range to the local market and leveraging the fresh product assortment.

With complete visibility to the inventory throughout the supply chain, at head office, warehouse and store-level, DinoSol expects to deliver more effectively on its mission to provide customers with the best price, quality and service ratio.

Other enterprise-wide benefits anticipated include improved cashflow, reconciling supply chain management with financial planning processes to support increased in service levels and ultimately, maximise sales.

Phased approach supports strategy

DinoSol will pursue a phased approach to implementation, starting with the deployment of Oracle Retail Replenishment Optimisation, which is expected to complete by the end of the year.

And the implementation, which is being managed by Capgemini, will culminate with the deployment of Oracle Retail Advanced Inventory Planning.

“Oracle’s local and retail expertise and its rapid deployment model were key factors in the selection process,” said Javier Perez de Leza, Dinosol chief executive. “With Oracle’s solutions, we expect to see a number of short-term benefits, including a reduction in inventory holding, while increasing our overall service levels and delivering measurable ROI [return on investment].”