Case 06Retail Supply Chain
Replacing the EDI middleman with about $10,000 a year
A custom R-based EDI integration for two major retail ordering systems, retiring the third-party software it replaced and saving roughly $10,000 annually.
Client
Australasian consumer goods importer
Year
2019
The Problem
EDI with large retailers is unavoidable and, for a mid-sized supplier, usually outsourced — the format is fiddly enough that paying a vendor feels like the safe option.
The economics stop working when the volume is modest and the message set is small. At that point the annual licence is buying convenience rather than capability, and the integration is simple enough to own.
What We Did
- Built the EDI integration in R against the Coles and Big W ordering systems, covering the message set actually in use.
- Cut over from the third-party software and retired the licence.
- Built demand forecasting and inventory optimisation dashboards in R, exposing safety stock levels and order quantities that had previously been set by feel.
The Result
- Approximately $10,000 saved annually by retiring the third-party EDI software.
- Integration owned and maintainable in-house.
- Inventory holding and transportation costs reduced through visible safety stock and order quantity targets.
Also Delivered
- A warehouse team of five led through peak periods, covering logistics compliance and performance coaching.
- Container consolidation improved with international suppliers.
Technology
REDIDemand forecastingInventory optimisation
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