The problem of the variants of articles is a common Retail challenge. GM Food Iberica decided to face it in a definitive and integral way. The motivation arose from the increase of requirements along the supply chain, the high benefits generated for our customers, and recent improvements related to internal processes. Once again, Zoi brought great value with their perfect combination of business knowledge in the supply chain processes and technical knowledge of SAP Retail.

INCREASING PRODUCT MANAGEMENT COMPLEXITY

Commonly in the Spanish distribution sector, distributors (or retailers) find it difficult to cope with format changes made by suppliers. Any format change implies the coexistence of different sale formats for the same product, therefore hindering smooth integration into most IT systems.

The problems caused by format changes were well-known and acknowledged by all the players in the supply chain of GM Food Iberica. However, reaching agreements for solving them was difficult and varied criteria were to be harmonized based on the business line. 

GROUP NEW PRODUCT VARIANTS AS ONE

The objective of the project was to ensure that format changes were not an issue for the operations of GM Food Iberica anymore.

However, format changes affected the development and interests of involved business areas differently. This is how the so-called »Variants of Articles« solution was finally implemented. A system that grouped all variants as a single item with a unique code, regardless of business line. 

KEEP IT SIMPLE & SUSTAINABLE

The »Variants of Articles« solution consisted of simplifying the registration of a variant and keeping all the variants grouped so that a single item always shows the same code, regardless of business line.

After the adoption of this solution, customers of GM Food Iberica place their orders by always requesting the same code. This is performed regardless of the appearance of new formats and the discontinuity of old ones. By doing so, benefits are obtained both for GM Food Iberica and the end customer. GM Food Iberica now avoids sale losses that previously occurred when changing the code (now a single code always serves the product). On the other hand, the end customer avoids suffering from service failures. As for the shipment of goods, thanks to this project GM Food Iberica is able to provide any format of the same article to its customers, therefore avoiding any possible lack of service.

BENEFITS

• Sales maximization: by avoiding sales losses when the manufacturer changes logistics formats.
• Stock management in Cash & Carry: for example, enabling the use of half pallets or other formats in Cash & Carry and with wholesale customers.
• Simplicity for the client: Customers just ask for the same article code regardless of its logistics variant.
• Equitable distribution: Since the decision-making is automatic, promotional formats are equally distributed among the diverse business lines.
• Straightforward management: The registration and modification of articles after format changes is highly simplified.
• Efficient logistics: The process automation prevents holes caused by unused variants, therefore also removing “picking hole” duplicities in the warehouse.
• Loss prevention: by improving the analysis of inventory differences.
• Enhanced reporting: Article codes remain homogeneous for reporting purposes.
  

ABOUT GM FOOD IBERICA

With over 95 years of history, General Markets (GM) Food Iberica is the leading company in the wholesale food distribution sector in Spain with a turnover of more than €1.1 billion per year. They currently employ more than 2,400 people and offer more than 20,000 different products. Catering to professionals in the hotel and restaurant industries, GM Good Iberica operates with 4 main business units including Cash & Carry, Retail, Food Service, and Export.