Baltika & Magnit
Baltika Breweries, part of the Carlsberg Group, is one of the largest producers of consumer goods in Russia. They operate eight breweries in Russia and is an important part of the Carlsberg Group and its operations in the Eastern Europe region, which also includes Azerbaijan, Belarus, Kazakhstan and Ukraine. Baltika is the leading exporter of Russian beer and exports to more than 75 countries around the world.
The Magnit store chain is one of the leading food retailers in Russia. As of September 30, 2020, the Magnit chain had 21,154 stores in 3,819 locations in the Russian Federation.
The company operates its own logistics system with 38 distribution centers, an automated inventory management system and a fleet of 4,852 vehicles.
Generix Collaborative Replenishment (GCR) is a powerful tool allowing retailers to regenerate their inventory, regardless of their geographical location, while maintaining total supply chain visibility. At the same time, users have the possibility to manage the shipment according to the sales region.
The project in details
The system was jointly tested by Baltika and Magnit at the retailer's distribution center located in the Samara region, which supplies products to approximately 300 outlets across the region. As a result, supplied stores satisfaction has increased by 5.7 points to 98.8%.
With daily updates from the retailer, Generix Collaborative Replenishment suggests the optimal delivery volume to the supplier. Thanks to data sharing, the supplier is quickly informed of sales trends and, if there is a risk of shortage, he can ship the requested products the same day. In case of regular replenishment, the solution automatically calculates the order within the predetermined minimum and maximum stock limits. During promotional periods, it tracks the volume shipped and proposes additional quantities if necessary. In addition, the implementation of VMI enhances products quality on shelf through a more frequent replenishment. Quick inventory flow prevents selling the goods at low prices and reduces stock levels, improving the range of items available to customers.
"Inventory management is a critical efficiency factor for any retailer. VMI helps suppliers and retailers make better replenishment decisions. We plan to scale the project across all of Magnit's geography, and in 2021 we will start connecting suppliers who have the technical capability to work with VMI to the system" said Anastasia Sorokoumova, director of the Magnit chain's operational planning department.