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.