Case study: POS

Company overview:

  • Multiple Grocer with a total group turnover >£55bn
  • Horticulture sales of £550m p.a in UK shops from cut flowers and plants
  • 3,800 UK shops in multiple formats and over 7,000 worldwide

Business challenge:

Replenishment of horticulture range was very time intensive as buckets of flowers had to be removed carefully from cardboard boxes. There was also significant cost involved in cardboard which was surplus to requirements. Changing the fixturisation also required the buy-in from suppliers who had to change factory layout and equipment. 

Our approach:

  • A square bucket was introduced that had a cardboard collar rather than a full cardboard box surrounding it
  • We analysed the time to replenish the new fixture to quantify the replenishment savings

Value delivered:

  • 30% reduction in replenishment cycle increasing time to tend the displays
  • 55% reduction in packaging taken through COGS
  • Suppliers absorbed the cost of CAPEX to introduce new equipment – this was paid back from faster production and the need to procure less consumables