A sophisticated inventory management system differentiates us from our rivals – COOP ZKD Sušice

Západočeské konzumní družstvo (ZKD, West Bohemian consumer cooperative), a member of the COOP group, is one of the few Czech companies that are capable of competing with foreign retailers. It operates 119 retail stores in eight regions and substantially contributes to the accessibility of quality food products to the local customers. An additional 234 retail stores are supplied from the cooperative’s modernized warehouse. In ZKD, individual demands such as local fair catering or firemen’s balls are taken into account, similarly as by the American Whole Foods company. The values of solidarity, health, and community are of primary importance. For ZKD, as well as for us, profit is a secondary effect of responsible enterprise.

„A sophisticated inventory management system differentiates us from our rivals.“
– Ing. Pavel Lőffelmann, economical director and vice-chairman of the cooperative´

Our cooperation with ZKD – COOP started in 2009 with a proposal of wholesale warehouse modernization. By implementing it, we upgraded the warehouse to match the 21st century standards. With that, we not only improved the parameters like productivity and expense-to-revenue-ratio, but thanks to interlinked processes, we also enabled ZKD to flexibly react to individual stores’ demands that are connected to various events such as local fairs or firemen’s balls in the individual towns.

“COOP is trying to be a good neighbor. It tries to create valuable job opportunities for locals and to have enthusiastic customers. Thanks to Logio we can achieve this in a more efficient way.“
– Ing. Pavel Lőffelmann, economical director and vice-chairman of the cooperative

ZKD takes part, among other things, in planning promo-actions within its TUTY, Diskont and TIP chains, as well as within independent stores. The portfolio of promotional activities contains both extensively planned seasonal campaigns, for which negotiations have to start months in advance, and regular monthly or fortnightly campaigns that are planned approximately one month in advance. Furthermore, weekly or ad-hoc campaigns are not exceptional; these can be implemented within one or two weeks. Because of the individual demands for event supplying, the range of uncommon products grows as well.

„Even with these results we don’t think we are using the potential of Planning Wizard to the full extent.“
– Ing. Pavel Lőffelmann, economical director and vice-chairman of the cooperative

As a consequence of that, ZKD started to face the problem of availability of a wide product range that its costumers request daily. In 2010, the cooperative’s performance fell by 10%. It was obvious that this state was not sustainable, as it was necessary to continue with the trend of extending the product portfolio while operating with limited financial resources.

That is why we introduced our Planning Wizard planning system into the ERP system of the company. It enables ZKD to manage the supplies of all its stores and warehouses based on the daily development of customer demand. We indentified unnecessary locked-up capital in the supplies, which the cooperative immediately turned into an increase of the number of offered items.

Our cooperation still continues - at the moment we are trying to improve the functioning of ZKD’s supply chain with fresh, refrigerated food.

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