Globus CR Focuses on Value with ML-Driven Automation
Company Size
1,000+
Region
- Europe
Country
- Czech Republic
- Germany
- Luxembourg
- Russia
Product
- Luminate Demand Edge
- Luminate Store Fulfilment
Tech Stack
- Machine Learning
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
Technology Category
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Retail
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Predictive Replenishment
- Supply Chain Visibility
Services
- Data Science Services
About The Customer
Globus CR is a part of the Globus Group, which has 18,500 employees and operates in three countries. In addition to a total of 47 hypermarkets, 91 DIY stores, and six electronics stores in Germany, the Globus Group also includes 15 full-range stores in the Czech Republic, 15 in Russia, and two DIY stores in Luxembourg. The company operates in a market landscape that is extremely promotion and price-driven. They were facing challenges with their supply chain management strategy, particularly in the areas of promotion and inventory replenishment. The company was also struggling with maintaining both promotion leftovers and out-of-stocks at a reasonable level due to data insights and planning activities being housed across different parts of the business.
The Challenge
Globus CR, a part of the Globus Group, operates in three countries with a total of 47 hypermarkets, 91 DIY stores, and six electronics stores in Germany, 15 full-range stores in the Czech Republic, 15 in Russia, and two DIY stores in Luxembourg. The company was facing challenges with its supply chain management strategy, particularly in the areas of promotion and inventory replenishment. The market landscape they operate in is extremely promotion and price-driven, and their promotion planning processes were manual and cumbersome. This resulted in high leftover stocks after promotions and high planning and handling costs. The increasing labor costs were driving the need for automation. The company was also struggling with maintaining both promotion leftovers and out-of-stocks at a reasonable level due to data insights and planning activities being housed across different parts of the business.
The Solution
Globus CR partnered with Blue Yonder to implement Luminate Demand Edge and Luminate Store Fulfilment. These solutions helped the company achieve higher promotion forecast accuracy and more demand-driven, automated, and centralized promotion planning and replenishing processes. With Luminate Demand Edge, Globus CR was able to develop highly accurate forecasts that go beyond traditional deterministic forecasting algorithms by including hundreds of additional demand influencers. The company successfully moved from a store-based manual promotion process to a future-proof centralized and automated process to achieve greater value and serve their customers more effectively. The Globus and Blue Yonder joint team were particularly focused on managing the changes resulting from ML-driven automation and, in parallel, tracking the relevant KPI improvements.
Operational Impact
Quantitative Benefit
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