Around 250,000 articles in five countries for wholesale, B2B and B2C in the office supplies sector are represented in the system and make up PBS Holding AG's broad product range. The replenishment effort is therefore enormous. The Austrian company therefore receives support from the AI-based replenishment software from REMIRA. Thanks to the software solution, replenishment processes in five countries are almost completely automated.
From starting out as a printing company in 1788 to becoming a leading trading company in the paper, office supplies and stationery sector: PBS Holding AG has undergone an impressive development. Today, more than 20 companies in over ten countries belong to the group. Around 1,500 employees ensure that the products of PBS Holding AG are available at all times and via every channel – for wholesalers and retailers as well as for commercial end customers. This is accompanied by a sophisticated and extensive replenishment system that maintains its own logistics in each country.
Artificial intelligence replaces in-house brand
PBS Holding AG used to work with a replenishment module integrated into the ERP system. However, this was no longer up to date and therefore no longer offered the functions required to meet increasing demands. Accordingly, the company decided to use specialized replemnishment software. The AI-based REMIRA software came out on top in a selection process. In 2014, REMIRA's Austrian partner ARBOR Management Consulting GmbH implemented the software at the Wels site. This was followed by successive roll-outs of the software in Germany, the Czech Republic, Italy and finally Slovakia. Further countries are on the agenda.
"We were convinced by the REMIRA software right from the start. We had to do a bit of convincing before the introduction – after all, familiar processes had to be changed. We started with five pilot suppliers in Austria and just a few weeks later we had already converted all suppliers in Austria because the responsible colleagues working in replenishment were so enthusiastic about the software solution,"
says Michael Schuch, Head of Supply Chain Management at PBS Holding AG.
Simulations for ideal stocks
The REMIRA replenishment software is used for planning in the respective countries from a central warehouse. To do this, the software is fed with master and transaction data from the ERP system. AI-supported forecasts are then used to calculate order proposals for a total of around 700 suppliers. Based on this, goods are added to the respective warehouses or delivered to customers directly from the central warehouse.
Michael Schuch summarizes the positive effects of using the software as follows:
"Shortly after the introduction, we were able to record a significant reduction in stock. At almost the same time, the availability of articles has increased noticeably. We can also use the forecasts to simulate orders and thus look into the future, which is an excellent support, especially for seasonalities and seasonal peaks."
The two particularly critical periods from an MRP perspective are the start of school in summer and the turn of the year. The stock build-up here is well thought out and precise - calculated on the basis of simulations and the given storage capacities. The consideration and mapping of seasonality in the REMIRA software is also a key factor for the very large fashion range of PBS Holding AG in Austria and Germany. This also ensures a very strongly system-supported disposition and thus considerable time savings.
High degree of automation in replenishment
Overall, however, it is not only the quality of the dispatchers' work that has been improved, as Michael Schuch explains: "On average, around 70% of the order proposals calculated by the system are accepted in the standard area. This high degree of automation ensures that we only have to press the button to send out the order. If a colleague is off sick or on vacation, they can simply take over. The availability of goods in the product ranges has also increased; it is around 98% across the product ranges and sales channels."
All in all, PBS Holding AG has achieved much greater efficiency, flexibility and time savings since using REMRIA's intelligent inventory management software. As a result, it is able to spend time on other activities, such as improving data quality in coordination with purchasing and product range management, which in turn has a positive effect on the quality of scheduling. Another advantage: Michael Schuch can track all replenishment processes in all countries centrally if required. This means that coordination with the respective managers is always based on a solid database and real-time figures.
All of this allows Michael Schuch to draw a consistently positive conclusion:
"I would almost describe the collaboration with REMIRA, and with ARBOR in particular, as friendly due to the many years of support. If we have new requirements, need additional reporting or an add-on, it always happens quickly. No big projects, not much effort - ARBOR and REMIRA know what we need and implement it quickly."
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