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Retail & Consumer Goods
January 4, 2023

Baltika & Magnit

Use Case

About Baltika

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.

About Magnit

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.

Benefits of the solution

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.

"We consider innovation as a key factor of success, and we encourage experiments. The growth of our company has opened up the potential for another way of managing inventory – CMI and VMI. When we first brought up the subject with Magnit at Carlsberg Group, we already shared a successful experience in VMI with players from other countries. Therefore, we decided to continue the journey with our historical partner we fully trust: Generix Group. We trusted the solution and its reliability, those were decisive criteria in our choice, not only for us but also for Magnit's partners" Anna Kudryavtseva Customer Service Development Manager Baltika Breweries

The project in details

Pilot project

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%.

Functionality implemented

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.

Benefits of the solutio

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.

They are using our solutions

Find the full description of the solutions presented in this case study

"We consider innovation as a key factor of success, and we encourage experiments. The growth of our company has opened up the potential for another way of managing inventory – CMI and VMI. When we first brought up the subject with Magnit at Carlsberg Group, we already shared a successful experience in VMI with players from other countries. Therefore, we decided to continue the journey with our historical partner we fully trust: Generix Group. We trusted the solution and its reliability, those were decisive criteria in our choice, not only for us but also for Magnit's partners"

Anna Kudryavtseva
Customer Service Development Manager, Baltika Breweries

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