Plan storage capacities – mitigate risks

KiK automates storage capacity planning and check procedures

Storage capacity is an important factor for any retailer. As part of realigning its processes with SAP for Retail, KPS also helped KiK to restructure its storage planning and check procedures in order to avoid supply bottlenecks, particularly in the inbound process, and to establish a basis for further expansion at home and abroad.

The challenge

The success of the discounter KiK is driven by its sales of inexpensive textiles, which accounts for some 70 percent of its overall product range. To offer its customers outstanding value for money, the discounter uses some highly sophisticated sales and distribution processes. KiK dispenses with middlemen and leverages the benefits of direct imports and intelligent logistics. Since the company was founded, its system landscape has grown and been enhanced with in-house developments and was no longer able to cope with the demands of such growth.

The solution

As part of realigning its processes and implementing SAP for Retail, the storage capacity planning and check procedures were also streamlined and restructured. This is especially important for KiK because procurement and delivery times when trading with the Far East, for example, can be six months or more. This means that as soon as an order is created, information must be available about whether there will be sufficient capacity in the target warehouse at the time of delivery. The starting point for checking storage capacity is storage capacity planning. Based on parameters such as plans for developing floor space and storage, it defines the available storage capacities over the course of the season and is also developed as part of the general planning process.

The customer benefit

Taking storage capacity into account during operational goods procurement has numerous benefits for the retailer: capacity bottlenecks and associated additional storage costs and risks are avoided. Workforce planning and ensuring the availability of forklift trucks further into the future are now also possible.

Throughout the project, KPS was particularly careful to map the special strengths of KiK and to enable tailored solutions to be developed. The newly implemented processes provide optimized support for KiK’s highly specific requirements and, at the same time, enable procedures to be standardized.