A Leading Supermarket’s Inventory and Fulfillment Optimization

Supply chain challenges

A leading supermarket faced inefficiencies in their inventory and fulfillment processes, which resulted in high order inaccuracies, slow order processing times, and increased customer returns. They needed to enhance visibility, improve KPI monitoring, and optimize employee performance to overcome these issues.

  • Inefficient Order Picking and Packing

    Errors in picking and packing orders increased costs and customer dissatisfaction, with roughly 20% of inaccurate orders going undetected.

  • Lack of Employee-wide Visibility

    Poor visibility across fulfillment operations made it difficult to track performance and spot inefficiencies, impacting order accuracy and speed.

  • High Customer Return Rates

    Incorrectly dispatched orders led to a 25% rate of customer returns, affecting customer satisfaction and increasing operational costs.

  • Extended Pick-to-Ship Cycle Time

    Inconsistent employee performance and time inefficiencies led to longer fulfillment times, increasing lead times and lowering throughput.

Algo’s solution

Algo partnered with the supermarket to enhance visibility and process optimization, providing actionable insights into their fulfillment and inventory systems. By centralizing data and closely monitoring KPIs, the supermarket improved overall fulfillment efficiency and employee performance.

  • Centralized Data

    By centralizing warehouse data, Algo enabled better business decisions and long-term planning, ensuring sustainable growth and operational control.

  • Enhanced Visibility and KPI Tracking

    Algo implemented effective KPI monitoring systems, providing insights into metrics such as order picking accuracy, lead times, and customer return rates to highlight inefficiencies and track improvements.

  • Labor Optimization for Fulfillment

    Employee performance was evaluated, leading to optimized shift allocations and enhanced fulfillment rates, improving overall warehouse productivity.

  • Improved Order Accuracy and Employee Training

    The solution optimized picking and packing processes, reducing errors, and introduced training programs to improve underperforming employees while reallocating stronger performers.

The results

Through Algo’s solutions, the supermarket achieved significant improvements in fulfillment accuracy, reduced lead times, and lowered customer returns. These operational gains helped the supermarket regain control over its supply chain and set a foundation for future growth.

  1. 20% Increase in Order Picking Accuracy: Over six weeks, the supermarket achieved a 20% improvement in picking accuracy, reducing errors and enhancing customer satisfaction.
  2. 12% Decrease in Order Lead Time: Optimized fulfillment processes led to a significant reduction in order processing times, improving overall throughput.
  3. 25% Reduction in Customer Return Rate: By addressing inaccuracies in dispatching, the supermarket saw a 25% decrease in customer returns, cutting down on costs and improving service quality.
  4. Improved Warehouse Efficiency: Enhanced employee performance and optimized labor allocation increased warehouse productivity, setting the stage for long-term operational improvements.

Improve your fulfillment accuracy by 20% and reduce customer returns by 25%.