Argos Reduces Inventory And Optimizes Supply Chain Processes With An Integrated Retail Platform

Argos' customers have the choice of shopping at a retail outlet or placing orders over the internet or by phone. To service customers effectively in this multichannel environment, Argos must ensure that it stocks the right items at the right locations to meet customers' needs. Optimizing inventory levels across its supply chain creates a significant challenge for Argos. The scale of its retail chain combined with the vast merchandise assortment it carries and the seasonality of its business creates enormous complexities for Argos' planners.

Standing in the way of this challenge were a number of independent supply chain systems, some of which were over 15-years old and reaching the end of their economic life Constraints created by these legacy systems hampered Argos' ability to meet its ambitious growth plans for stores' product assortment, inventory controls, and customer serviceability.

In 2001, Argos instituted its Replenishment and Core Operations (RACO) program that aimed to overhaul the legacy supply chain solution with a complete modernization of its inventory management processes and information systems. Argos selected Oracle Advanced Inventory Planning and Oracle Retail Merchandising System as the optimal solutions to support its goals. Through RACO, Argos was able to modernize its replenishment process leading to reduced inventory levels without disruptions to serviceability, benefiting both Argos and its customers.