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Relex Presentation


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Accurate and demand forecasting & replenishment ordering Saas solutions for logistics used by Retail, Wholesale, Manufacturing and Spare Parts companies to lower inventory levels, improve service levels, reduce time spent ordering and have better process efficiency at low-risk and very cost-effective. Look it up at or mail me at

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Relex Presentation

  1. 1. RELEX – Automatic and efficient replenishment ordering! RELEX 01.06.2010vrijdag 10 december 2010
  2. 2. RELEX software in a nutshell • Software tool that enables automatic forecasting and inventory replenishment • Works together with customer’s ERP system – Sales data, inventory records, and different kinds of product master data are transmitted from the ERP system to RELEX – RELEX system forecasts future demand and determines order requirements – Replenishment orders and forecasts are transmitted from RELEX to the ERP system 2vrijdag 10 december 2010
  3. 3. RELEX • Solutions for efficient and accurate forecasting and replenishment • Management-owned • Rapid and profitable growth • Strong customer references – Retailers, wholesalers, manufacturers and spare parts companies • RELEX’s strengths – SaaS-model – Fast, flexible, and innovative – Risk-free choice (pre-studies, pilots, cost-effective implementation) RELEX solutions are used for forecasting and replenishment of millions of SKU’s, tens of warehouses, and hundreds of stores, and are used to control billions of euro’s material flows. 3vrijdag 10 december 2010
  4. 4. RELEX’s solutions add value to the customer’s ERP system RELEX ERP Order calculation Inventory Transactions transactions • Sales • Accurate order calculation that considers each individual Product master data • Purchase orders product’s, location’s and • Goods receipt Assortment supplier’s special information Inventory records characteristics • Inventory corrections Demand forecasting • Reliable automatic and Order quantity Production planning manual forecasting that • Production scheduling Demand forecast considers each SKU’s • Capacity management individual demand pattern Control of replenishment and forecasting • Parameter management and optimization • Exception handling • Flexible reporting 4vrijdag 10 december 2010
  5. 5. Attained customer benefits  Several man-years of work removed from the Reduction of the time purchasing function spent on ordering  Significant reduction of the number of buyers (up to 75%)  Removal of unnecessary buffers and reduction of the inventory investment Lower inventory levels (combined with improved availability)  Up to six times quicker inventory turns  Availability up by as much as several Improved service levels percentage points  Significant increase in sales (in stores) Better process  Significant reduction of the total cost of efficiency freight, handling, and inventory Savings of several hundreds of thousands of Euros per year! 5vrijdag 10 december 2010
  6. 6. DIY retail and wholesale: Case Rautakesko • Company specifics – Sales 3 953 M€, 8 operating countries, 400 stores – The largest DIY/Hardware chain in North-Europe and 5th largest in Europe • Initial situation: – Replenishment purchasing de-centralized to product manager’s – Different tools utilised (SAP, Excel, Logisticar) – Goal to systematize and increase process efficiency and decrease stock levels • Project – Integration to SAP, Finland wholesale into production use in 2008, stores and remaining other countries 2009 – 2011 • Results: – Significant reduction on purchasing staff – Avalability has risen to a record high level – Inventory turns increased by 37% – Process quality has increased 6vrijdag 10 december 2010
  7. 7. Book and stationaries trade: Case Suomalainen Kirjakauppa • Basic facts: – Finlands market leader in book retail, 62 stores, average 10 000 assortment per store – 70% of sales from books, 30% from stationaries – High assortment turnover in books (over 85% yearly) • Project starting point and goals: – ERP-based automatic replenishment and order proposal handling in the stores – Goal: totally centralised automatic replenishment – all ordering work out of the stores • Project: – After piloting, roll out of whole store chain in five months • Results: – One central planner handles replenishment orders for the whole chain (600 000 SKU’s) – Shelf availability increase 91% -> 98% – Inventory turnover increase by 16%, while good visual shelf lookout maintained 7vrijdag 10 december 2010
  8. 8. RELEX’s competitive advantage is advanced functionality combined with lean use and implementation Efficiency in daily use & Compared to best actual roll-out speed RELEX competitors, RELEX Slimstock offers Oracle • at least matching JDA E3 functionality SAP F&R • leaner and faster implementation Lawson projects • lower risk MS Dynamics AX ERP SAP ERP RELEX offers risk free piloting – try us Functionality, forecasting & out! replenishment 8vrijdag 10 december 2010
  9. 9. RELEX pushes the boundary of automation and supply chain efficiency over ERP-functionalities RELEX ERP-functionality  Advanced statistical modelling  Simple time series models (seasonal, trend, intermittent) supported Forecasting  Causal models (e.g. promotions)  Advanced inventory policies  Basic MRP calculation and and optimization reorder point policies Inventory optimization  Coordinated replenishment  Supply chain synchronization  Advanced optimization and  Limited possibilites for self-learning models exception management Level of automation  Exception based management 9vrijdag 10 december 2010
  10. 10. Key functionalities: Accurate forecasting • Advanced statistical modeling – Several mathematical models for base, trend, seasonal and intermittent demand – Intelligent demand classification algorithms for selecting and optimizing the most appropriate model with minimum human input – Automatic decomposition to base demand, promotional demand and special sales • Promotional forecasts and events – Several different models and ways to use causal factors (prices, promotions etc.) to complement sale history • Forecasting on different hierarchy levels – Manage at any level of product, location or time – Flexible hierarchical forecast creation, reconciliation and allocation to item/location-level • Flexible and efficient manual adjustments 10vrijdag 10 december 2010
  11. 11. Accurate forecasting: example 11vrijdag 10 december 2010
  12. 12. Key functionalities: Inventory optimization • Logical replenishment policies and optimization – Different ordering models for products with for example low demand or seasonality – Time phased optimizations that use desired service levels, replenishment cycles and cost information to determine safety stocks and economic order quantities • Coordinated replenishment – Can-order, cyclic and full-truck models can be used for creating optimal orders when many products are ordered from the same supplier • Synchronized supply chain – Future order proposals and inventory balances can be estimated and also used in forecasting and ordering (e.g. the forecasted orders for stores can be used as a forecast for DC.) 12vrijdag 10 december 2010
  13. 13. RELEX use process Order proposal acceptance Daily actions Exception management Follow-up Daily calculation of Goal and resctrition setting forecasts and order (Availability goal, cost information, proposals order restrictions) Regular updates Automatic update of Update based on (for example once a parameters need (for (Safety stocks, forecast week) example once a models,order batch sizes, order cycle) month) 13vrijdag 10 december 2010
  14. 14. Key functionalities: High degree of automation • Parameter optimization and self-learning models – Intelligent algorithms for selecting the best forecast models and optimizing safety stocks and order quantities – Automated and scheduled optimization runs that use self-tuning algorithms and can be flexibly configured to react to exceptions and changes • Exception based management and flexible reporting – Complete flexibility to use any parameters and metrics at any aggregation level for defining exceptions – Possibility to automatically assign different actions (e.g. raise safety stock or optimize forecast model) to exceptions 14vrijdag 10 december 2010
  15. 15. Exception management with RELEX • RELEX solutions are based on exception management from scratch • Especially in high volume business exception management is powerful tool – Important to define exceptions as situations, that can be acted on – Key is to act automatically / semi-automatically on exceptions, as human interference ís limited Exception Weekly exceptions • Over-stock situations • High spoilage • Forecast errors • Order automation surveillance Daily exceptions • Out of stock • Forecasted OOS • 15vrijdag 10 december 2010
  16. 16. RELEX exception management is unique • User can define exceptions with total flexibility – Basis information, classification or metrics can be used as conditions – Can be changed even on daily basis to suit current available human resource to handle exceptions • Possibility to connect automatic actions to exceptions – Especially in large product quantities more efficiency and much speedier actions • User interface allows user to manually view root causes of exceptions and act on them efficiently – Based on graphical design and flexible jumps from screen-to-screen 16vrijdag 10 december 2010
  17. 17. RELEX can deliver – and prove it beforehand • You can quickly access – Yearly labour savings of over ten man year – Significant reduction of lost sales and increased customer satisfaction by better shelf availability – Free about 20% of the capital tied to your inventory • We can ensure with minimum risk before systems investments are needed with our three step process 1. History-data based analysis to ensure the applicability of RELEX’s science-based forecast- and order algorithms 2. Practical pilot with few stores or limited product areas – test the whole improved process! 3. SaaS –based operating model – pay as you go 17vrijdag 10 december 2010
  18. 18. Minimising risk by three implementation phases Current status Ensuring Moving to and practical continuous improvement applicability operation potential Phase 3: Phase 1: Phase 2: Full RELEX X-Ray, Process and Implementation analysis project system pilot and roll-out - Implementation - Goal setting - New improved of RELEX - Achievable operations - Full trial of in direct results - Roll-out and practise - Duration 6 – 8 change - Set-up 4-8 weeks from management weeks star to - Duration 3-8 - Pilot duration 3 reporting months months 18vrijdag 10 december 2010