CREATING VALUE IN A MULTINATIONAL SUPERMARKET BY ESTABLISHING A PRODUCTIVE OPERATING MODEL.

In 2022, a US Multinational Supermarket Chain were looking to identify $100m of growth and efficiency benefits across c. 500 stores. A Tessiant team, led by an ex-COO of Tesco & Morrisons, conducted an end-to-end review of the current retail operations. We met with the leadership team and assessed 17 stores across 3 states, distribution centre and the associated people, process, and use of technology. We looked at opportunities end-to-end ensuring sustainable productivity methodology leveraging space, assortment, merchandising, forecasting and sales.

The output was a comprehensive set of recommendations across 7 distinct areas, prioritised on value, and proposing a re-engineered operation model. It included a 2-year roadmap split into: immediate actions within a 6-12 month timescale; medium-term initiatives within 2 years; and future projects for 3+ years out. We focussed on creating value through improved productivity in replenishment, checkouts and eCommerce and increasing sales through better forecasting, availability and shopfloor standards.

We were invited back in 2023 to assess progress, visiting a further 8 stores and an additional distribution centre. We helped extend the roadmap to align with their 3-year strategy, which identifies a potential benefit of up to $500m. As a result of the approach we proposed, they are on the path towards a 5% improvement in productivity and up to 4% sales growth.

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