Algonomy’s Order Right perfectly met the client’s need for an ultra-granular, robust, and adaptive replenishment ordering system.

Order Right utilizes a suite of custom machine learning algorithms that adjust to demand and supply chain dynamics at a hyperlocal level, accounting for both increases and shifts in demand.

Its robust framework swiftly addresses retail data challenges such as sparse data, outliers, and noise, allowing your teams to focus on business without worrying about data interventions.

Algonomy’s Order Right helped the client to automate and optimize replenishment schedules for 200+ categories across all store locations in the region via a single platform. Here are the key highlights of the solution:

• Hyperlocal ML-based Demand Forecasting
  With Order Right, the client transitioned from sales heuristics-based demand forecasting to ML-based multi-variate demand forecasting at a highly detailed level. The models were trained using various factors such as product hierarchy, holidays, events, promotions, discounts, and demand deviations. Order Right automatically selects the optimal model for each product-location combination based on best-fit criteria, significantly improving the demand forecast accuracy for 90% of SKUs.
• Curbing Cannibalization and Promotional Chaos
  The previous replenishment framework depended on manual interventions to account for promotional effects like cannibalization. With Order Right, the client shifted to automated adjustments of replenishment levels, both up and down, between products, taking into account promotions and availability.
• Mitigating Supply Chain Disruptions
  Before Order Right, the client depended on suppliers to deliver according to agreed-upon contracts, and any deviations from the SLAs caused stockouts and supply chain disruptions. With Order Right, the client transitioned to dynamic modeling of key factors like lead time, MOQ, minimum size pack, safety stock, display minimums, and pending orders to optimize order plans.
• Optimizing Multi-Echelon Inventory
  The previous approach of using multiple sheets and systems for order management at different supply chain nodes was ineffective and cumbersome. With Order Right, the client moved to centralized multi-echelon inventory management across stores, warehouses, and stocking points.
• Effortlessly Leveraging Retail Data
  Order Right’s robust demand forecasting framework helped demand planners circumvent data challenges such as sparse data, noisy data, outliers, and new product introductions effortlessly with custom retail-tuned algorithms. This significantly reduced the efforts required by the team to get quality data.

The client is one of the largest chains of modern retail stores in Southeast Asia. With over 700 suppliers and 130+ outlets, the client faced multiple challenges in supplier processes.

• Vendor and product onboarding processes were discontinuous and tedious leading to over 10 days of lead time.
• Product attribute and price modification required 7 days due to manual processes leading to decreased supply chain agility.
• Suppliers operated in silos with limited visibility on order to pay cycle.
• Invoice and delivery dispute redressal were not streamlined leading to supplier dissatisfaction.
• Unavailability of sales, inventory and category insights to suppliers.

With over 200 stores and a 1000+ suppliers planned in the near future, the client saw supplier collaboration as a major value lever in its business expansion. The client strongly felt that a shift in its supplier collaboration approach towards a scalable supplier ecosystem was a major part of this journey.

ADA Global’s Vendor Link fit in perfectly with the clients requirement of a 360 degree supplier collaboration platform. Vendor Link is a comprehensive web-based vendor and retailer collaboration platform that removes operational silos between vendors and retailers by automating and streamlining end-to-end operations.

Vendor Link enables suppliers to manage their own information during onboarding, reducing paperwork and tedious processes. With guided workflows and status visibility across personas, vendor onboarding and product onboarding processes are streamlined.

Order to Pay collaboration enables electronic document exchange with suppliers at every stage of the fulfillment cycle leading to greater transparency and efficiency. The invoice matching capability reduces processing time, costs, and disputes. With an added capability to create on-demand analytical views for retailers and suppliers, Vendor Link helps in better decision making. In addition, it aggregates data insights for retailers and suppliers which can be used for strategic and tactical purposes.

The client benefited from Vendor Link in the following ways:

• With the help of Vendor Link’s guided workflows for vendors and category managers and seamless backend integration, the client was able to reduce the time required for vendor and product onboarding from 10 days to 3 hours.
• Suppliers gained complete visibility on order to pay cycle with the help of smart notification and tracking system.
• With a real-time triangulation between purchase order(PO), goods received note(GRN) and invoice, the client was able to reduce disputes on supplier invoices.
• With backend integrations with suppliers systems, Vendor Link enabled on-demand reports on outstanding payments, stock and other financials for suppliers.
• Client was able to monetize data insights on category, sales and inventory and share it with key suppliers.

Vendor Link helped the client transform supplier collaboration from a set of cost-based ad-hoc processes to a digitized and scalable supplier ecosystem with streamlined operations and system-wide transparency.