Hagebau Connect, the e-commerce unit of Hagebau Group, relies on the AI-based Add-One software solution from Inform for the replenishment of its online product range. With the introduction of this web-based solution, the retail company has automated central procurement processes and reduced stock levels by 30 per cent within six months. This was also reported by the Lebensmittel Zeitung.
As the operator of the online shop, Hagebau Connect is responsible for a significant part of the digital transformation within the group. However, as the product range grew, so did the demands on replenishment. Before the solution was implemented, processes such as quantity planning were based on manual sales analyses in Excel. Orders were also placed manually in the merchandise management system, without any possibility of prioritisation or optimisation.
The aim of the implementation project was to create more efficient processes through automation and to relieve dispatching staff in their day-to-day work. “We achieved this goal immediately after implementation,” says Daniela Schlichting, Process Manager in the Procurement and Direct Shipping team at Hagebau Connect: “Before the software was introduced, we used to schedule once or twice a week, but now we are able to plan on a daily basis because entire manual steps have been eliminated.”
AI forecasts support daily replenishment
The Add-One software is connected to Hagebau Connect’s Microsoft Business Central (formerly Navision and later Microsoft Dynamics NAV) merchandise management system via an interface and transfers all relevant data to the software. A total of six dispatchers and two process managers control around 3,500 active warehouse items with the solution.
Based on intelligent forecasting methods, the software analyses demand behaviour for each item and generates automated order proposals. A customised workflow within the web-based user interface ensures that employees only see the information that is relevant to them. Additional functions such as range graphs, delivery quality indicators and rule-based calendars, as well as browser-based access, enable efficient and location-independent working within a team networked across Germany.
Reduced stock levels and improved transparency
In addition to increased efficiency and reduced workload for dispatchers, another project goal was to reduce inventory levels in a targeted manner. “In the first six months after introducing Add-One, we were able to reduce inventory by 30 per cent in conjunction with other measures,” says Schlichting.
The new solution also contributes to significantly improved data presentation, especially in comparison to previous Excel analyses. The software optimally prepares historical sales data, open orders and forecasts in graphical form, thereby facilitating data-based decisions.
Hagebau Group is committed to automation
At the beginning of this year, Hagebau opted for Mercio’s AI-based price optimisation solution, as reported by The Retail Optimiser. Using AI, Mercio supports the group in defining product families and the relationships between items – and that with the enormous number of 500,000 SKUs offered by Hagebau.
