Dispatching at Eurogast Grissemann requires maximum precision and flexibility: the company's own fleet of trucks transports seasonal and often perishable products throughout Austria all year round. In order to manage this logistical effort, the catering wholesaler relies on precise and flexible forecasts from REMIRA's tried-and-tested replenishment tool.
Eurogast Grissemann belongs to Eurogast Austria together with ten other private catering wholesalers. They focus on supplying major customers from the catering and hotel industries. The 110,000 different items in the extensive product portfolio are stored in a total area of 19,000 m2. In addition to supplying these high-quality goods and foodstuffs to around 5,000 customers from the large-scale catering and hotel industry, the company also operates the embedded shopping center "Der Grissemann" at the Zams site, which has a sales area of 15,000 m2. With its specially developed Best.Friend app, the group is also a pioneer in digitalization and generates more than 75% of its sales via digital ordering channels.
Finger calculations in the replenishment department
However, replenishment at Eurogast Grissemann was not digitalized for a long time and was a manual, time-consuming and personnel-intensive task: 16 product managers (also known as category managers) used so-called replenishment lists, which listed all items and SKUs (Stock Keeping Units) including supplier affiliation, to plan the required quantities of the respective items and product ranges on a daily basis. They were then passed on to the planning department for further processing. The standardized ERP system only provided support with rigid article statistics, which served as a reference point for the manual calculations of daily, weekly or monthly requirements. "We derived the orders from this on a one-to-one basis and passed them on to the relevant suppliers. We were basically the hub for all orders, deliveries and communication with suppliers. It was always difficult to compensate for sick leave in the team," recalls Dominik Schweisgut, Head of Replenishment at Eurogast Grissemann.
As a catering wholesaler, extreme fluctuations occur within Eurogast Grissemann's product range due to seasonal fluctuations, promotional periods and changing weather conditions. It is also not unusual for orders to be placed far in advance, especially for the company's own spring and fall trade fairs. This can also lead to excess stock in the off-season, which has to be assessed with complex calculations for stock levels. Retail products that are purchased in large quantities by wholesale customers were also difficult for the Austrian full-range supplier to scale in terms of order and stock quantities. The shelf life limits of the food products were also particularly challenging.
Forecasts on the timeline
Eurogast Grissemann therefore needed a software solution that could incorporate all these special features and provide reliable forecasts of order times and quantities. The aim was to simplify processes and reduce stock levels in line with demand in order to be able to act more flexibly. During its research, the Austrian company came across the Dortmund-based software developer REMIRA. As an expert in software solutions for supply chain and commerce, the company supports its customers along the entire value chain. In addition to its technically impressive, AI-supported cloud solutions, REMIRA is also characterized by the intensive advice and support it provides to its customers. The Austrian wholesaler has therefore been relying on REMIRA's sales forecasting and procurement software (formerly LOGOMATE) since 2020. After initial delays due to the pandemic, the inventory optimization software has been fully implemented since the end of 2020 - also thanks to REMIRA's implementation partner ARBOR Management Consulting GmbH, based in Eisenstadt. "REMIRA was able to offer us the best solution for our requirements in close coordination. Unfortunately, most of the appointments had to take place online due to the coronavirus, but we still received excellent digital support during the implementation," says Schweisgut.
The introduction of the replenishment tool has fundamentally changed the way Eurogast Grissemann works. Based on past sales data and data from the existing ERP system, the REMIRA inventory management software recalculates SKU requirements on a daily basis. The software creates short, medium and long-term forecasts and presents the planning suggestions in an intuitive and clear graphic that resembles a timeline. The system provides suggestions for the optimum time and quantity to order and, if required, triggers the order automatically. Seasonal and trend indicators, perishability and dynamic safety stocks are taken into account in the calculations.
Less is more - especially in replenishment
The stock optimization software has significantly improved time management at Eurogast Grissemann: instead of a 16-person team, only four employees now work in replenishment. This corresponds to a reduction in workload of 75%. The newly gained capacity can now be used for other purposes. Almost all suppliers are now replenished using the REMIRA replenisment tool. Thanks to this centralized replenishment, Grissemann is also able to transfer articles across locations. The needs-based orders also contribute to a visible reduction in stock levels. In this way, the wholesaler reduces its markdowns and conserves valuable resources. Overall, the food wholesaler has gained greater security thanks to the software support, and not just when it comes to avoiding out-of-stock situations.
High reliability thanks to software support
Simplified processes, reduced resource requirements and system-optimized, needs-based and centralized replenishing - Eurogast Grissemann has achieved these goals with the AI-supported solution from Dortmund-based software provider REMIRA.
"The REMIRA software helps us noticeably! With the software, we can rely on a very high level of security, and not just in terms of calculations. Even vacation and sick days in the replenishing team no longer make us nervous, because the software always orders. We could even cope with another pandemic now",
concludes Schweisgut. With the support of the software solution, the catering wholesaler is able to react flexibly and in good time to seasonal fluctuations and other developments.
Would you also like to reduce your replenishment costs and stock levels? We would be happy to advise you!
Photos: © D. Kühl
