bellaflora: reducing inventory and out-of-stocks thanks to LOGOMATE

Green as far as the eye can see: bellaflora, Austria's leading company for natural gardening and decorating, offers around 25,000 products. The family-run company generates more than two thirds of its sales with plants for the garden and interior. The strong seasonal fluctuations and the associated risk of spoilage pose particular challenges in replenishment. In order to meet these challenges in the best possible way, bellaflora relies on the REMIRA LOGOMATE inventory management software and has been able to significantly reduce the spoilage rate. 

“Austria's green number one” - that's how bellaflora is also known. In 27 stores, the company not only offers a huge selection of indoor and outdoor plants, but also garden accessories and decorative items as well as a range of animal welfare products for wild animals and pets. In 2011, the company decided to introduce inventory management software. The choice fell on REMIRA LOGOMATE, as Gerda Hofer-Rettenwender, responsible for central planning at bellaflora, explains: “We wanted to use software to reduce inventory and avoid out-of-stock situations as far as possible. With the help of automation, we also wanted to reduce staff deployment in the branches and in purchasing so that employees could be used for value-adding activities.” 

Stock-out articles reduced by 20%

The biggest challenge in the project was the organizational changeover. Before the introduction of LOGOMATE, there were different ordering processes by the purchasing department, in the branch and by supplier representatives, who stocked the walls in the bellaflora branches every two weeks. With the introduction of REMIRA's inventory management software, many stock ranges were ordered centrally by a planning team and the ordering process was taken out of the branches. In addition, some master data information had to be recorded so that LOGOMATE could plan correctly, including the definition of the listing per branch, the storage of minimum stock levels and the management of predecessors.

The effects of using the software quickly became apparent: by taking over replenishment from the representatives, significant increases in sales were achieved, including more than 9% in the seed product group. The range and availability of goods has improved by 30% in all branches since the introduction of LOGOMATE, and stock-out articles have been reduced by 20%.

“Another important aspect for us was the reduction of excess stock of out-of-season goods. The spoilage of green plants and short-lived items such as seasonal plants is a major challenge for us. As Austria's number one green company, we are particularly committed to environmental and climate protection and the sustainable use of resources. LOGOMATE helps us to achieve these goals,” 

says Rettenwender. By automating inventory management, the employees in the stores can also concentrate more on advising customers.

Logistical balancing act

LOGOMATE currently manages 310,500 SKUs at bellaflora, and this figure is constantly rising. The proportion of green goods such as nursery articles, seasonal plants, houseplants etc. is around 30%, while the proportion of boutique and hard goods is 61%. There is no central warehouse, which is why orders are placed directly with suppliers. The orders then arrive directly on the day they are ordered and there are individual order rhythms for each supplier. This means that staff deployment, for example in the goods receiving department or among the sales staff, can be better planned. Thanks to LOGOMATE, the goods are available in the branches in line with demand and the required quantities are automatically reduced at the end of the season. “LOGOMATE also automatically takes into account the minimum quantities specified by the supplier. This is a huge advantage for perishable goods with short delivery times.  In general, we have widely varying delivery times from suppliers and weather-dependent product ranges. This involves a logistical balancing act,” says Hofer-Rettenwender, describing the challenges at bellaflora.  

Demand-oriented distribution with LM push

The garden center also uses LOGOMATE push. The distribution module is the ideal tool for needs-based distribution of remaining stock, one-off and seasonal items. Distribution instructions can be used to distribute certain quantities of goods to stores according to predefined keys. Depending on the location and requirements, demand can vary significantly and optimal distribution has a massive impact on inventory, logistics costs and markdowns. At bellaflora, LM push ensures that the total quantities are distributed according to turnover or stock levels. “Distributions for the stock range are carried out by replenishment, while distributions for items and other seasonal ranges, such as decorative items, are recorded by the respective buyers. The buyers have their own allocation users with restricted masks. The distribution instructions are entered manually in LOGOMATE,” explains Ms. Hofer-Rettenwender.
Thanks to LOGOMATE, the inventory of standardized goods on the shelves has been optimized. In addition, it is now possible to order specific requirements in all product areas - especially for seasonal goods. Gerda Hofer-Rettenwender is more than satisfied with the use of LOGOMATE and the cooperation with REMIRA:

“The implementation of LOGOMATE was uncomplicated and competent. The cooperation with REMIRA was always professional, solution-oriented and pleasant.” 

Photos: ©bellaflora/Huger