Provide better service for both warehouses and stores
Reitan Distribution delivers consumer goods to a wide range of chain stores in Denmark, including 7-Eleven, Rema1000, Q8, and XY. The company is part of the Norwegian Reitangruppen, which is one of the largest retail companies in Scandinavia with 27,500 employees and a 2009 turnover of more than 7.1 billion euros.
With 6,600 deliveries a week and 48 million goods items a year, Reitan Distribution’s transport is very comprehensive and accounts for one third of the costs. The company operates with six delivery days a week, various delivery patterns for different types of goods, and numerous restrictions relating to e.g. store
demands, environmental regulations and residential-area distribution.
Reitan Distribution’s main objectives of acquiring a new transport planning system were to provide better service for both warehouses and stores and to become able to control and monitor execution, thereby also obtaining traceability and proof of delivery. In addition, the system should contribute to reaching the overall target of reducing distribution costs by 20-25 %.
In order to achieve these goals, a thorough research and selection process was initiated, resulting in the choice of AMCS’ solution. “The main reasons why AMCS’ system was chosen were its flexibility as regards dynamic planning and the fact that it is very user-friendly”, explains Preben Lyng Nielsen. “Besides, the system links well with the financial side of the business. With the system’s dynamic planning facilities, we can now see right away how much
we will gain from making plan adjustments. It also enables us to control the level of resource utilisation and the invoicing of hauliers.”
AMCS’ system has enabled us to even out the workload throughout the week and to gather orders in the same districts on the same routes. This is absolutely crucial.
A minimum reduction of 10 % in distribution costsTime spent from order deadline to actual delivery reduced by 50 %Significantly improved overview and much more flexible executionIncreased control of the process as well as the invoicing and utilisation of resourcesBetter service for stores and smoother warehouse work flow