Case International retailer - Long term S&OP
An international omnichannel retailer faced severe capacity issues. The commercial department aggressively grew sales: more assortment, more channels and more service options. And with success, the business grew double digit. The supply chain department had to make sure the warehouse capacities and capabilities were aligned with volume growth.
Districon build a business simulation tool in AIMMS. All locations, productivities, rates, capacities, order flows and profiles, etc were put into this model. Then we developed and simulated, together with this retailer, different scenarios and sanity checks. Examples are basket size development, volume scenarios, return changes, key city policies, greenfield and brownfield scenarios, etc.
- Fast development: the model is built in 4 months
- Relatively low development costs: a small team build this model iterative.
- Scenarios can be reviewed on the spot as many as you can believe make sense
Learnings en challenges:
- The biggest challenge is to define the right scenarios together
- And, you have to choose which business rules are hard coded in the software and which rules are parameterized.
By running this model in a frequent way this retailer has strengthened its decision making. It leads to more flexibility, lower costs and better anticipation on future development.
Interested? Get in contact with Victor Ponsioen