dm Drogeriemarkt has decided to expand the deployment of software from Relex. In future, the company will also use the Finnish specialist’s forecasting and replenishment software throughout Europe. With the move, the drugstore operator expects to improve operational efficiency and product availability in its stores.
dm has been using solutions from the technology provider for store-specific product range and space planning since the end of 2021. The company uses them to adapt listings as well as the number of facings and placements to the needs of its individual outlets. The Retail Optimiser reported.
With this step, the drugstore operator expects to make its forecasting and scheduling processes fit for the future. Managing Director Roman Melcher explains in a press release from the technology provider, that he expects with the expanded use of Relex’ software to offer great potential for further optimisation of the dm end-to-end supply chain.
Holistic approach to create synergies
By combining store-specific demand, product range and space planning, dm aims to further optimize its supply chain in a holistic approach and thus increase product availability. Through synergies in all business areas, the company aims to make processes more efficient and reduce logistics costs. The software optimises and automates orders based on precise demand forecasts for the individual sales outlets. It uses machine learning and considers all relevant demand drivers, such as promotions, weather, public holidays, local events and cannibalisation effects.
Automated replenishment is not a new topic for the drugstore operator. More than 20 years ago, dm pioneered this technology in German retail, implementing SAF software. Following the acquisition of SAF by SAP in 2012, the software was integrated into its Forecasting & Replenishment application. With the announced end of maintenance of the SAP F&R Engine for 2027, Edeka and Hornbach have already opted for Relex software as they did not want to go along with the new SAP UDF solution. The Retail Optimiser reported.
