Home ERP Super King Outperforms Competition, Absorbs Minimum Wage Increase With AFS Supply Chain...

Super King Outperforms Competition, Absorbs Minimum Wage Increase With AFS Supply Chain Suite

0
SHARE

Located in Los Angeles, Super King Markets operate in a crowded and competitive environment. Retailers like this must be agile, competing for customers by offering a wide variety of goods and services. Given customer acquisition and retention is a high priority, companies sometimes lose their focus in other areas resulting in negative effects such as shrinkage, excess inventory, operational inefficiencies, and other losses.

Super King went live with AFS ERP in 2014 and AFS WMS in 2015. After transitioning from a clipboard and pencil environment, Super King regained control of its operation and was able to achieve higher levels of performance.  Since then, Super King has:

  • Added three new stores and two new distribution centers
  • Started wholesale business along with retail thanks to ERP price tiers per customer tool
  • Cut average per item inventory by up to 23 percent moving towards just-in-time ordering and cross dock. Thanks to ERP and WMS data, average aging of warehouse inventory was reduced from 75 days to 45 days for dry grocery and liquor and from 21 days to 8 days for perishable goods
  • Accurate real-time inventory along with historical per item transaction data have helped plan purchasing better and track bill-backs up to the last cent.
  • Regained efficiency in operation of distribution centers by cross training order selectors since WMS directs them to the exact location where the item is located and confirms the selector is picking the correct item
  • Less picking errors in distribution centers have helped significantly reduce out-of-stocks at our retail locations which has reduced customer complaints by 15 to 20 percent
  • Reduced labor expense by 25 percent in three years while running almost 30 percent more business and despite yearly Los Angeles city minimum wage increases

“The supermarket industry has always been very competitive.  When mandatory minimum wage increases took effect, it had the potential to shrink our already thin margins” says Super King Markets Director of Distribution Lyova Hayrapetyan. “Due to the efficiencies we realize running the AFS solutions, we have been able to reduce our headcount despite growing our operations and adding new stores. The purpose built software system we have gives us the confidence that we can continue our growth well into the future.”