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Digital sustainability solutions for Retail -
Whitepaper of the EHI Retail Institute in cooperation with Microsoft

Automatic orders — without any manual effort

Bad Salzu­flen, 24.03.2021. “Sustaina­bi­lity also plays a major role in the digi­ta­li­sa­tion stra­te­gies of retail compa­nies. In which areas do sustaina­bi­lity aspects influence digi­ta­li­sa­tion? How can intel­li­gent tech­no­logy be used sensi­bly to moni­tor, control and evaluate energy costs and consump­tion? How can digi­ta­li­sa­tion and sustaina­bi­lity be recon­ci­led, espe­ci­ally in the area of statio­nary retail spaces? The white paper provi­des a compre­hen­sive insight into tech­no­lo­gi­cal prin­ci­ples, fields of appli­ca­tion and prac­ti­cal examp­les, enri­ched by rese­arch results from EHI’s retail surveys.” (Source: EHI Retail Insti­tute)

What does the digi­tal solu­tion of POS TUNING look like?

With neoalto, the shelf does all the work from now on. All stocks and goods move­ments at first hand, in real time and available ever­y­where. neoalto’s Auto­ma­tic Orde­ring revo­lu­tio­ni­ses orde­ring proces­ses in retail, indus­try, health­care and where­ver there are shel­ves. neoalto Auto­ma­tic Orde­ring elimi­na­tes the manual effort of orde­ring. Sensors on the shelf use state-of-the-art laser tech­no­logy to deter­mine stock levels, and the smart cloud appli­ca­tion knows when and how much needs to be reor­de­red. Each time the products are taken out, the remai­ning products are auto­ma­ti­cally pushed to the front by the POS TUNING push feed system. The IoT tech­no­logy (Inter­net of Things) from neoalto measu­res the stocks and goods move­ments directly on the shelf in real time and sends them to the neoalto Service Cloud. There they form the data basis for auto­ma­tic orders.

Indi­vi­dual frame para­me­ters regu­late the stocks accor­ding to demand, sales and storage capa­city for each item. As soon as an item reaches its order stock, it is auto­ma­ti­cally placed in the elec­tro­nic shop­ping basket and is thus included in the next order. Manual efforts for stock deter­mi­na­tion, order entry and orde­ring are elimi­na­ted.

The neoalto Auto­ma­tic Orde­ring works auto­no­mously. The time-consum­ing article crea­tion and manage­ment in the ERP system is not neces­sary.

How Strenge and POS TUNING use neoalto Automatic Ordering

The basis is our intel­li­gent feed solu­tion and the digi­tal neoalto solu­tion on the Azure plat­form. POS TUNING deci­ded in a first phase to auto­mate procu­re­ment for two areas: Main­ten­ance mate­rial for machi­nes and clea­ning agents. Both commo­dity areas were previously mana­ged manu­ally via SAP. In order to be able to trig­ger orders, mate­rial masters had to be crea­ted in each case. Since the consump­tion was not syste­ma­ti­cally recor­ded and booked (e.g. through produc­tion orders), various employees checked on sight when and how much had to be reor­de­red. This not only caused an enorm­ous manual effort, but also often led to goods being orde­red seve­ral times or not at all. The stocks were then either too high, or miss­ing goods had to be purcha­sed ad hoc from local sources.

In coope­ra­tion with Strenge, the merchan­dise areas were first checked and as many artic­les as possi­ble were swit­ched to Strenge. In this way, the number of suppli­ers could be redu­ced from over ten to just one. In addi­tion, POS TUNING was able to reduce the number of neces­sary deli­veries by 50% through neoalto Auto­ma­tic Orde­ring. In direct compa­ri­son to manual proces­sing, POS TUNING was able to reduce process costs by 27%. At the same time, the avai­la­bi­lity of goods has impro­ved by more than 75%.

Strenge trans­par­ently invoices POS TUNING for the neoalto Auto­ma­tic Orde­ring Service. This avoids dilu­tion of mate­rial prices.

The results of the case study of STRENGE and neoalto are convincing

The advan­ta­ges for POS TUNING are the concen­tra­tion on one supplier, the opti­mi­sa­tion of the avai­la­bi­lity of goods by 75% and the 11 hours more time for skil­led work resul­ting from the savings — and that every month!

Strenge, as a supplier, also bene­fits from Auto­ma­tic Orde­ring:

“„Wir entlas­ten unsere Kunden bei der Waren­ver­sor­gung mit C‑Teilen, so dass diese sich auf ihr Kern­ge­schäft konzen­trie­ren können. Durch das neoalto Auto­ma­tic Orde­ring konn­ten wir bei POS TUNING mehr als zehn Liefe­ran­ten ablö­sen und unser Liefer­vo­lu­men deut­lich auswei­ten. Als nächs­ten Schritt planen wir die Liefe­rung bis ins Regal über KLTs. Damit entfal­len für POS TUNING dann auch die Aufwände für den Waren­ein­gang und wir sparen Verpa­ckung. Die Auto­ma­ti­sie­rung der C‑Teile Versor­gung ist die Zukunft.“”

Klaus Strenge, Inha­ber Strenge

Since then, Strenge has saved €175 in trans­port costs per month, €163 in order proces­sing and 105 kg in annual CO2 emis­si­ons.

Read more about it now in the EHI white­pa­per toge­ther with Micro­soft linked below.

Cont­act us or neoalto directly for more infor­ma­tion on how you can digi­tise your shelf.