Chedraui has taken a step forward in the digital transformation of its operations with Smart Inventory from GS1 Mexico , a platform that is changing the way shelves are managed in its more than 550 stores.
The initiative, which was born as a response to multimillion-dollar losses due to shortages , has demonstrated that technology and collaboration can make a difference in Mexican retail .
In this sector, product availability is no small issue. An empty shelf not only represents a poor consumer experience but also means significant financial losses.
According to José Luis Poumián Pólito , deputy director of Price and Category Strategy at Chedraui, the shortage represents 1.5 billion pesos in annual losses in Mexico, impacting both retailers and manufacturers.
“The biggest challenge we face is efficient product replenishment. We carry more than 50,000 items in our stores, and until recently, finding a missing product was like looking for a needle in a haystack,” explained Poumián, who attended the 7th Industry-Commerce Collaboration Forum, a GS1 Mexico event.
Furthermore, in a context where e-commerce continues to grow, the challenge intensifies.
“The picker arrives with a list of specific products, and if they don’t find them, they simply don’t buy them. This translates into lost sales that we can’t afford,” he added.
To address this challenge, Chedraui turned to Smart Inventory , a platform that allows real-time monitoring of product availability and generates alerts to efficiently replenish shelves.
Previously, the chain conducted physical store audits and analyzed data with predictive models , but was unable to translate this information into concrete actions.
With the new tool, floor workers receive daily notifications on their mobile devices about products that may be at risk of shortages.
“Now, instead of walking the aisles trying to identify what’s missing, our employees receive a precise list of products they need to check. If an item is in stock, they move it to the shelf; if it’s not, they adjust the inventory. It’s a radical change in the way we operate,” explained Ismael González González, Deputy Director of Processes and Operational Management at Chedraui.
Just a few months after its implementation, the numbers reflect the positive impact of this implementation. 45,000 items have been analyzed in 556 stores; more than 435 million data combinations have been processed; 50 daily alerts with the greatest economic impact have been prioritized; and 121 million pesos in sales have been recovered.
But beyond the numbers, the most significant change has been in daily operations, according to executives.
“Previously, the assortment process relied heavily on the intuition and experience of each employee. Today, with this tool, we’ve reduced errors and improved efficiency,” said González.
The key to success
Poumián emphasized that one of the most important lessons learned from this project has been the importance of collaboration , both within Chedraui and with its business partners.
“Eighty percent of our workforce is made up of promoters and business partners. If we don’t work together, we can’t solve the shortage problem,” he emphasized.
He added that the impact on the customer experience has also been significant, as when a customer finds everything they’re looking for, they come back, and in such a competitive market, customer loyalty is invaluable.
Digitalization and the intelligent use of data are not only a competitive advantage, but a necessity for the evolution of retail .
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