Sustainable, responsible, and innovative: The Tyrolean family-owned company MPREIS places a strong emphasis on regional products as well as sustainability and social responsibility in its grocery stores. To ensure that its approximately 280 stores are managed optimally, MPREIS relies on a software solution from REMIRA for forecast & rpelenishment that uses rule-based AI. This has not only significantly reduced the effort involved in ordering but, above all, has also significantly reduced inventory levels.
The MPREIS stores are located primarily in the core region of Tyrol, but also in Salzburg, Carinthia, Vorarlberg, Upper Austria, and South Tyrol. In addition to its food retail operations, MPREIS also owns two production facilities: the Therese Mölk Bakery and the Alpenmetzgerei. Both are located in Völs, where the family-owned company’s headquarters are also based. With 6,000 employees, MPREIS is not only one of the most important employers in the Tyrol region but also one of the largest operators of photovoltaic systems in Austria. MPREIS is also known for the unique architecture of its stores, which are individually designed for each location.
Resource savings through forecast & replenishment software
99% of MPREIS’s items are distributed to the stores from the central warehouse in Völs near Innsbruck. The only exceptions are a few direct suppliers in the frozen food and beer sectors. Christian Klement, Head of the Planning Department, has been with MPREIS for over 25 years and was even part of the team that used a program developed in-house by the company’s IT department back in the day. He knows that today’s volume of inventory planning at MPREIS would be impossible to manage without specialized software and is pleased with the streamlining of the processes:
“We currently have a planning team of just 12 people who handle 80% of store and central warehouse orders using the REMIRA software. Since we switched to a two-tiered planning system about two years ago, we’ve seen significant savings in terms of resources. The workload for the 12 people is limited to two to three hours per day for store and central warehouse orders. The remaining time can be used for strategic coordination with the warehouse, the fleet, sales, or communication with suppliers.”
The two-tier system at MPREIS is characterized by the fact that demand forecasts for the central warehouse areas are no longer based on the central warehouse’s outbound data, but rather on the demand forecasts and order data from the individual stores. This approach is supplemented by the agreed-upon purchase quantity per item or per supplier and the respective delivery window.
Demand-driven planning with minimal effort
REMIRA’s forecast & replenishment software, which was implemented at MPREIS over ten years ago by REMIRA’s Austrian partner ARBOR Management Consulting GmbH, successfully supports the Austrian grocery retailer in demand-driven planning for all its stores. Approximately 1.7 million stock-keeping units (SKUs) are calculated using the software, with the dry goods assortment being managed 100% automatically. Christian Klement further explains:
“We’ve increased our efficiency, in particular, by significantly streamlining inventory at the central warehouse. In the past, it was almost always operating at 100% capacity because planners generally tend to order a little extra just to be on the safe side. Now, the fill rate at the central warehouse is only around 70%. Nevertheless, actual inventory availability has actually increased—by two to five percent per product group.”
By using advanced algorithms and artificial intelligence, the REMIRA software not only provides precise sales forecasts. It also optimizes inventory planning decisions based on a variety of factors, such as weather forecasts, historical sales figures, seasonal fluctuations, and current market trends or sudden changes. The high degree of automation—for example, for routine orders that do not require special attention—thereby frees up valuable resources in the planning department.
Strong support for promotional campaigns as well
The software is fed master and transaction data from the ERP system via interfaces and reports back with purchase orders. “In the morning, we do a rough review of the high-level planning calculations for the next day (today for tomorrow) and check whether the data is consistent and identify where specific needs and promotions are before we release them to picking. The detailed planning for the current day usually runs fully automatically,” says Robert Unterwandling, Senior Planning Specialist, describing the process with the inventory management software, and adds: “We’re always in close coordination with Purchasing. When the software flags items nearing their best-by date, we immediately coordinate measures to get the merchandise out of the warehouse as quickly as possible—for example, by offering them at special prices as a clearance sale.” This so-called “push” function of the software is essential for MPREIS, especially when it comes to fresh products: unnecessarily high inventory levels or even write-offs due to expired best-by dates would be costly for the company. “Together with ARBOR, we’ve continuously improved program and data security and further developed the features to meet our needs. For example, this allows us to better coordinate promotional quantities, and in this regard, the software is simply better than any human,” says Christian Klement. In addition to the four seasons—which also impact tourism—there are seasonal peaks such as Valentine’s Day, Easter, and Christmas. Here, too, MPREIS relies on the software’s well-founded forecasts to ensure optimal inventory levels in its stores well in advance.
MPREIS also benefits from the weather module in the inventory management software. Since there are 34 different weather zones in Tyrol alone, and completely different weather conditions prevail in South Tyrol and Carinthia, 15 weather stations have been integrated into the application. This significantly increases the reliability of the forecasts, allowing for adjustments to be made to inventory planning accordingly. Grocers experience weather-driven sales spikes, particularly in the beverage sector. The warmer it gets, the more sales of beer, mineral water, non-alcoholic beverages, and salad increase. Barbecue meat is also a major driver. Based on data from the weather stations, the REMIRA software can adjust forecasts—and thus also the scheduling recommendations—at an early stage.
Automated planning for production as well
In the future, MPREIS’s two production facilities will also be integrated into the inventory planning and production scheduling process using the REMIRA software. Pre-packaged items with a best-by date, such as Linzer Stangen or Salzburger Zupfkuchen, are in high demand and are typically included in central warehouse orders. They are then shipped to the stores via store orders. For fresh or ultra-fresh products, including frozen rolls, orders must be placed two days in advance because the products require one day to thaw. Currently, the production facilities still handle their own daily needs—but in the future, these orders will also be processed through the software and the central warehouse.
“Our goal for 2026 is to integrate our production facilities—with all their specific requirements—into the existing planning structure. We’d like to extend the success of our central warehouse to production and optimize capacity, since utilization rates there are very high,”
explains Christian Klement.
He will also be able to rely on the support of ARBOR Management Consulting GmbH in this regard. What Klement values most about REMIRA’s Austrian implementation partner is their mutual understanding of requirements and needs:
“The collaboration with ARBOR and REMIRA is truly on equal footing and of an exceptional standard. It’s not just about selling software; it’s about actively engaging with the product alongside the customer. We work closely together and continuously improve the application—that’s what makes this solution unique.”
Would you also like to optimize your inventory while increasing product availability? We’d be happy to advise you!
