From Data to Shelves: How Rossmann Revolutionized Logistics with 21,000 Products

Challenge

With an ever-evolving market and a wide range of products, the challenge lies in efficiently managing the supply chain to ensure optimal product availability. The company's customer-centric culture demands quick responses to varying customer behaviors and market trends.

Solution

The COVID-19 pandemic disrupted the retail landscape, compelling Rossmann to adapt swiftly. The company decided to use advanced analytical tools, including machine learning algorithms, to automate and optimize logistics processes and replenishment. The choice of partner for the implementation of analytical and AI tools fell on SAS due to its expertise, strong local consulting team, and industry competence. The solution helps in the quick and effective planning of logistics operations by analyzing customer needs and adjusting current and future shipping volumes to the capacity of the supply chain.

The company's forward-thinking approach, including the implementation of SAS platform, proved invaluable. By integrating data-driven predictive mechanisms, Rossmann could anticipate and manage demand fluctuations, respond to disrupted supply chain, and optimize resource allocation.

Deployed SAS solution allows to:

• automate critical logistic processes – over 98% in store and over 90% in warehouse replenishment areas, automatization of orders generation process,
• adapt quickly to the changing market situation, e.g. the COVID-19 pandemic, 
• prepare accurate sales forecast, with forecast accuracy level above 80%,
• generate optimized replenishment orders for over 1700 stores and 700 suppliers,
• maintain the highest possible product on shelf availability - over 97% during pandemic period,
• meet all business constraints - over 50 constraints related to suppliers, warehouses and stores,
• balance the cost of related logistics operations. 

Results

Rossmann's commitment to aligning technology with customer needs has yielded remarkable results. The integration of advanced analytics, automation, and a strong organizational culture allowed them to weather unforeseen challenges effectively. This approach not only ensures product availability but also positions Rossmann for continued growth and success in the dynamic retail industry.