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Blue Yonder > Case Studies > CONAD Adriatico Transforms its Supply Chain
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CONAD Adriatico Transforms its Supply Chain

Technology Category
  • Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries
  • Retail
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • System Integration
The Challenge
CONAD Adriatico, a cooperative leader in Italy, Albania, and Kosovo, was faced with the challenge of balancing stock ownership and store inventory needs. The company needed to minimize order fragmentation and determine the right purchasing frequency for each product, while also considering logistics constraints such as truckload capacity utilization and minimum order quantities. The goal was to achieve this supply chain transformation while delivering the highest level of service to their affiliates and customers.
About The Customer
CONAD Adriatico is a cooperative that brings together 377 independent grocers in Italy, Albania, and Kosovo. It is part of the larger CONAD Group, which collectively represents one of the largest grocery retailers in Italy and is a leader in the supermarkets channel. The company was challenged with the need to strike the right balance between stock ownership and store inventory needs by minimizing order fragmentation and determining the right purchasing frequency for each product, while simultaneously considering logistics constraints, such as truckload capacity utilization and minimum order quantities.
The Solution
CONAD Adriatico implemented Blue Yonder’s warehouse replenishment solution to provide a single view of warehouse and point-of-sale replenishment needs, based on accurate SKU-level forecasts. With these forecasts as inputs, the solutions were able to define profitable inventory policies, including new delivery schemes that focus on shipping products directly from vendors to peripheral warehouses. These new initiatives helped maximize the productivity of CONAD Adriatico’s internal warehouse operations, while also significantly reducing logistics and inventory expenses.
Operational Impact
  • The productivity of the replenishment team increased allowing CONAD Adriatico to manage a sophisticated and structured replenishment process using the same resources.
  • There was a consistent decrease of stock and a solid and constant increase in profitability.
Quantitative Benefit
  • 100% ROI 12 months after solution implementation.
  • Significant reduction in logistics and inventory expenses.

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