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Kaufland Retail | MEE SAP Unified Demand Forecast
Retail
Kaufland is a German hypermarket chain, part of the Schwarz Gruppe which also owns Lidl. It operates over 1,500 stores in Germany, the Czech Republic, Slovakia, Poland, Romania, Bulgaria, Croatia, and Moldova.
Improved Algorithms provide "better forecast quality <38% WMAPE error rate (Weighted Mean Absolute Percentage Error) 35 million Daily calculations of store-product combinations
Headquarters Germany
Products Operation of grocery stores and supermarkets
€21 B (US$23 B) Revenue
84,000 Employees
Web Site
Kaufland.com
Business Challenges • The algorithms of the previous solution generation did not provide forecasts with sufficient granularity for all fresh products Customer Benefits • The "R" (replenishment) module continues to provide optimized order quantities based on factors like rebates and truck utilization as an auto-replenishment, but now also leveraging the forecasts of the UDF software • High number of influencing factors the new system could include in its calculations includes weekdays, price effects and cannibalization, trends and seasons, payday effects, and weather • The program is also able to estimate the sales of new products based on similar items
“Since March, the UDF system has been forecasting the expected sales quantities for all 1,450 Kaufland stores in Germany and Eastern Europe and for all assortments. Based on SAP HANA database technology, it calculates up to 35 million store-product combinations a day. For the first step in this process, modeling, UDF evaluates the sales history of the past 800 days.”
Michael Hahn IT Manager Schwarz Group
Read the Success Story
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