"OK" automated processes of demand forecasting based on the solution Oracle Retail Demand Forecasting

2019: Process automation of demand forecasting and planning of orders

On August 2, 2019 the Veltio company reported that the network of hypermarkets of O'KEY Group automated processes of demand forecasting based on the solution Oracle Retail Demand Forecasting and planning processes of purchase orders and movement based on the solution Veltio APX Supply Chain Planning for centralization of supply management and increase in efficiency.

Using solutions of Veltio and the Oracle RPAS platform, the O'KEY network could increase the efficiency and level of service of clients and also to minimize possible losses by automation of a supply chain and use of more exact demand forecast. For August, 2019 O'KEY already notes improvement of forecast accuracy of demand: concerning the sales of goods which are not participating in promotion actions, accuracy increased by 20%, and for sales forecasts promo — for 30%. Thanks to what the service level of clients and decrease in surplus stocks as supply rate in shops and distribution centers is better correlated with consumer demand is promoted. It allows O'KEY to perform transition from a reactive inventory management model to pro-active.

Before supply chain management in O'KEY network it was performed manually, using partial automation. Insufficient synchronization between systems and divisions could cause difficulties at replenishment action in distribution centers and shops. Not centralized purchases at suppliers led to non-optimal orders and additional time expenditure, without allowing to perform high-quality planning on longer horizon. Having passed to a single platform, O'KEY increased efficiency of resources, having got rid of need to support work of not synchronized processes of the different systems and integration data between them.

The solution implemented through Veltio allows to create the detailed demand forecasts in which seasonal fluctuations, promo, discounts, actions and elasticity of demand at the price are considered. More exact demand forecast reduces the losses caused by pent-up demand and does work of a supply chain of more effective. The calculated forecast automatically is used for calculation of the plan of orders with detailing to the level of day and goods/shop taking into account a wide rule set and restrictions necessary for automatic orders in product retail.

Thanks to more exact demand forecast using Oracle Retail Demand Forecasting and to smaller quantity of the errors caused by a human factor "OK" had an opportunity to place better orders with smaller time expenditure.

"Because of extensive geography of our network of delivery of goods to some shops take up to several days. Process automation and optimal capacity utilization in logistics — the key to success in our industry. In product retail of the company are forced to look for balance between the high level of service and the minimum level of a trade inventory. By centralization and automation of process of the order placement considering a set of different rules and restrictions and also using more exact demand forecast, we try to obtain increase in supply chain performance. With Oracle Retail we received full-function industry solution - flexible and scalable. And specialists of Veltio provided high-quality implementing solutions, having shown deep understanding of requirements of our business. Our command will focus on solution deployment on order management on all types of goods that will allow to make better decisions and to be ready to the shifts in demand", notedTariel Bokuchava, the CIO of O'KEY group

"The project was interesting and difficult. Several dozens of employees "OK" from functional and IT departments took part in it. It showed possibilities of the solutions Oracle Retail to answer local calls. Our work bore fruits thanks to cooperation with "OK" and CORUS Consulting company which directed implementation of the complex project. Practically right after start, the project positively affects business "OK", and we are sure that its complete implementation will only consolidate achievements", notedConstantin Price, the director of business development of Veltio in Russia