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Project Description

GM Food Iberica

Variants of articles project

Client

GM Food Iberica

Business

Cash&Carry, Retail, FoodService and Export

Sector

Food distribution

Objective

Supply chain optimization

Products and services

SAP

“The problem of the variants of articles is a common challenge in the Retail sector. GM Food Ibérica decided to face it in a definitive and integral way. The motivation arouse from the increase of requirements along the supply chain, the high benefits generated to our customers, and recent improvements related to internal processes. Once again, 3Hold brought great value with their perfect combination of business knowledge in the supply chain processes and technical knowledge of SAP Retail.”

Joan Torres

CIO, GM Food Iberica

The client

With over 90 years of history, GM Food Iberica is the leading company in the wholesale food distribution sector in Spain with a turnover of more than a hundred billion euros per year. It is the only wholesaler in Spain that with its brands covers more than 2400 references of food, fourth-range products, drugstore, perfumery and bazaar. The business units of GM Food Iberica are: Cash & Carry, Retail, FoodService and Export.

INITIAL SITUATION

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

THE CHALLENGE

The objective of the project of variants of articles was to ensure that format changes were not an issue for the operation of GM Food Iberica any more.

The problems caused by format changes were well-known and acknowledged by all the players in the supply chain of GM Food Iberica. However, there were differences of criteria to be resolved according to the business line, because the impact caused by those changes of format in the different areas was completely different and the interests of each area also. This is how the so-called “Variants of Articles” were finally implemented.

The problems caused by format changes were well-known and acknowledged by all 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. Not in vain, format changes affected the development and interests of involved areas differently. As a consequence of this situation, the so-called “Variants of Articles” were finally implemented.

THE SOLUTION

The solution of the project of variants of articles regarding the management of changes of format consisted in simplifying the registration of a variant and keeping all the variants grouped so that the single item still had the same code.

The solution for the variants of articles project with regard to the management of format changes consisted on simplifying the registration of a variant and keeping all the variants grouped so that a single item shows always the same code.

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 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.

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