M.Video-Eldorado: Titan Logistics Supply Planning Platform

The main articles are:

• SCM (Supply Chain Management) - Supply Chain Management (Inventory Management)
• SaaS - History. Philosophy. Development drivers

Titan is a system for forecasting sales and planning replenishment of company objects.

2022: Platform MVP release

The M of Video El Dorado group "," working in the field e-commerce and, retail electronics and household appliances on July 22, 2022, announced that it had developed and launched the MVP of the procurement planning, sales forecasting and distribution platforms for the company's facilities.

The Titan inventory management system has come to replace to American SaaS the Predictix solution, which the retailer used earlier. Titan is fully created by the M.Video product team, Dorado operates cloudy in the environment, it is easy to adapt it to changing business needs and support it in-house. At the same time, the solution costs the company 1.5 times cheaper and with a significant increase in the speed and accuracy of the calculations it makes, representatives of M.Video-Eldorado said.

With the help of predictive analytics, Titan creates a need for the number of inventories that the Group needs to purchase and distribute to stores, central and regional warehouses, distribution centers - more than 1300 objects. The solution makes calculations based on product matrices, historical data and sales forecasts, taking into account seasonal traffic, the desired level of service, that is, the speed at which the client receives a purchase, the geography of each object, the dynamics of online and the share of self-pickup of Internet orders. Own development allows you to flexibly and quickly respond to market changes - adjust the algorithms for the distribution of goods depending on supplies, send goods to those stores where they are most in demand and are purchased faster.

As a result, Titan allows logistics experts to determine the size of the target inventory for each name at each site. In turn, users can flexibly configure introductory for calculations depending on the tasks set: delivery speed, volume of accumulated goods at the facility, level of pickup of large household appliances, replenishment speed, etc. Titan is also integrated with the Group's assortment planning system and takes into account the purchasing needs identified by mathematical algorithms based on data analysis. The solution makes the necessary calculations daily for 1.5-2 hours - 5 times faster than the previous system, which allows you to more accurately plan logistics transportation, preventing overflowing at facilities or too long delivery times - in some regions, delivery times from the central warehouse may be halved.

In six months, the Group's product team independently developed and released into the product MVP (Minimum Viable Product) platforms for predicting sales and planning deliveries based on open source technologies. Unlike the previous solution used by the retailer, its own product is easy to maintain and adapt when market conditions change. Development and calculations are carried out on the basis of cloud environments, and the costs of support and development are on average one and a half times lower compared to the payment of a currency license, the company noted.

"We called the delivery planning platform we developed" Titan "no coincidence - the Group carries more than 3 million cubic meters of cargo per year, half of our inventory is stored in stores, and more than 85% orders are available within 24 hours. These are huge volumes, and when calculating, accuracy and speed are important to us. "Titan" has effectively proven itself on these indicators even in the MVP stage. By the end of the year, we plan to significantly expand the functionality of this solution in order to automate planning as much as possible even in the current market conditions, add forecasting of demand for promoters, further increase planning accuracy by enriching the algorithmic machine learning platform and deeper data analysis, "said Diana Kovalskaya, head of the inventory and distribution department at M.Video-Eldorado.