Customer Success Stories
Matas strengthened by intelligent purchasing
Denmark's largest Health & Beauty chain store has created a purely customer-driven value chain and leads the way in future supply chain control.
Using a new management model, Matas has gained detailed insight into product flow from its central warehouse to its stores. The model, which has helped its logistics function to manage inventory levels both at its central warehouse and in stores, now constitutes part of reporting to management.
Central management benefits all
Matas decided to transfer the responsibility for store product ordering from the individual store managers, to Matas’s central logistics department. Today the central unit dispatches products to the 291 stores on the basis of analytics and data from ABC Analyzer. The changes have been positively welcomed by store managers.
Excellent customer service & lean warehouses
Excellent customer service is a cornerstone of Matas’s strategy and is now assured through precise inventory levels of the various product groups.
“In the past, when we discovered that a product was out of stock in one of our stores, it was difficult for us to assess how urgent we needed to replenish the item. How important is the individual item in the individual store?"Jesper Amsinck, Logistics manager, Matas A/S
He continues: “Naturally, we always strive to maintain supply but when all is said and done, there’s a big difference in how important a given product is for Matas’s business." The goal for Matas is to be able to ‘stock the right product volumes at the right time and place’ at all times.
ABC model ensures top and bottom line
By using the ABC model, Matas has analyzed its entire product range, dividing it into nine categories that show how profitable a given product is and how quickly it moves through the product flow.
The theory behind the ABC model and the “double ABC” is that products have different values and buying patterns, and that a business’ success depends on its ability to focus on the key products (AA) that account for its core business.
Matas now has a practical management tool that provides a detailed picture of where the store chain has tied-up its capital, enabling top management and the logistics function to balance tied-up capital and customer service, i.e. reduce capital tied up in stocks and maximize revenue.
The Matas chain is Denmark's largest retail chain selling beauty, personal care and health products. Matas employs approximately 2,500 staff, has 291 stores, a centralized warehouse in Allerød in North Zealand, a highly dynamic product range numbering between 15,000 and 20,000 active product items and up to 20% new products in its product range every year.
Ensuring excellent customer service while reducing capital tied up in stock locally and centrally.
The centralized logistics department ensures that the right volumes of the right products reach the chain’s stores. The ABC model provides the basis for differentiated inventory and procurement management.
The logistics function has radically reduced the business’s overall capital tied up in stock. Hereby maintaining excellent customer service levels, and freeing time to service customer in store.