"Pharmacy chain 36.6" scaled the project on optimization of trade inventories on all drugstores of network

"Pharmacy chain 36.6" — the Russian company of the sector of retail by goods for health and beauty — scaled joint about the SAS project of optimization of trade inventories on all drugstores of network. On September 6, 2017 reported about it in SAS company.

Pilot implementation

The pilot project in which at the first stage 10 drugstores participated and on completing — 250, took 9 months and included data analysis, identification of bottlenecks in the current business processes and also development and deployment of methods of machine learning for demand forecasting and optimization of trade inventories.

As a result the turnover in drugstores improved by 1.5 times due to decrease in surplus stocks, and the quantity of cases of items out of stock decreased by 15% owing to what sales increased.

Scaling

Having estimated the received results, the management of network made the decision to scale the project on all drugstores. As of September, 2017, the system of SAS works in all network, covering 1755 drugstores.

Allowed to find SAS golden mean between satisfaction of demand and cost reduction on superstocks due to more effective distribution of goods by drugstores — the chairman of the board of directors of PJSC Pharmacy Chain 36.6 Ivan Saganelidze reported.

At the same time multiechelon optimization of trade inventories — both at the level of each drugstore, and at the level of a warehouse, taking into account their interrelation, the periods of replenishment, restrictions on the minimum and maximum orders was executed.

We are going to continue to develop and expand application in network of 36.6 methods of data analysis and machine learning for the solution of such tasks as determination of the most beneficial price, assortment planning, target marketing and client analytics, program management of loyalty — the head said retail analytics of SAS Russia/CIS Dmitry Larin.