Demand Forecasting and Supply Chain

Sainsbury’s – the second largest chain of supermarkets in the UK, with a 16.9% share of the supermarket sector – trades in fresh, groceries and general merchandise and operates around 2000 stores generating £28.5 billion revenue. 

Sainsbury’s Clothing (TU) and General Merchandise (Argos) business lines used multiple applications to provide their forecasting models and a reactive order-point system to move inventory from warehouse to store. In order to fulfill their vision of making Sainsbury’s “great again”, Sainsbury’s Clothing and GM sought Veltio’s Demand Forecasting and Veltio’s Supply Chain solutions.

The numbers

nd Larger
Grocery retailer in the UK
Avg Product Lines
In Inventory Savings
% Sales Increase
for TU in first few weeks of SC system run

The results

The implementation of Veltio’s Demand Forecasting and Supply Chain solutions allowed more statistically robust processes and created a single overall workflow across the business. In turn, this increased user efficiency and reduced overall time spent in the system. 

Veltio’s Demand Forecasting yielded automated new-item forecasts. The Supply Chain application optimized the allocation of prepacks and reached across a complex, multiple-tier supply chain leading to a significant decrease in inventory at store and DC locations while overstocks and terminal stocks reduced beyond expectation. Finally, Veltio implemented next-generation smoothing & capping of warehouse to store transfers, aligning warehouse capacity with store-need using ROI-based prioritization.