- Relex F&R
The retailer has embarked on a large-scale transformation of its supply chain operations by implementing an AI-driven forecasting and replenishment (F&R) system. This initiative, leveraging a cloud-based platform, represents one of the largest logistics projects in Russia and a significant milestone in global retail automation.
Business Challenges
The retailer previously relied on an in-house solution that could no longer meet the company’s growth requirements in terms of accuracy, speed, and automation. Key challenges included:- Data misalignment across supply chain processes, limiting visibility and efficiency.
- Manual intervention in forecasting and replenishment, increasing operational complexity.
- Inventory inefficiencies, leading to stock shortages in high-demand categories such as Fresh and Ultra-Fresh.
- Limited scalability of the existing system, restricting agility in responding to market dynamics.
Solution Implementation
The new system, powered by AI and machine learning, was designed to:- Enhance demand forecasting by analyzing historical sales, marketing activities, store performance, and customer behavior across all channels.
- Optimize inventory levels to ensure high product availability while reducing overstock and waste.
- Automate supply chain decision-making, minimizing manual interventions and increasing operational efficiency.
- Improve supplier collaboration by enabling accurate and timely demand planning.
Russia serving over 1,250 stores.
Business Impact
By deploying the Relex platform, the retailer achieved:- Increased product availability in stores, particularly in fast-moving categories.
- Higher service levels, reducing stockouts and improving customer satisfaction.
- Enhanced workforce efficiency, reallocating forecasting teams from routine tasks to strategic functions.
- Greater transparency and control over supply chain operations, enabling agile decision-making.
- Optimized costs, reducing waste and excess inventory while maintaining high fulfillment rates.
Strategic Significance
This initiative positions the retailer at the forefront of AI-enabled supply chain transformation. By leveraging machine learning to drive real-time, data-driven decision-making, the company is setting new industry benchmarks for operational efficiency, agility, and scalability in retail logistics.“Supply chains represent one of the key aspects of Magnit's digital transformation. We need modern process automation tools to develop our chain efficiently and effectively. The forecast and replenishment system by Relex will enable us to consider and meet customer preferences as accurately as possible and continue adapting our value proposition,”—commented Maria Dei, Magnit’s Supply Chain Director.
“Relex's forecasting and replenishment solution is optimally suited to the scope of Magnit's business. AI and ML technologies will enable the Company to effectively automate the replenishment processes and secure huge benefits, both financial and operational. This is probably the most ambitious retail supply chain transformation project that Russian and international retail will see in the next two years,”—said Nikolay Antimonov, Forecasting and Replenishment Project Director at Magnit Retail Chain.
“We are extremely pleased to bring Relex’s solutions to Magnit. This will be one of our largest supply chain projects in the world. Together with our integration partner, Ywis, we have worked out all the necessary processes at the preparatory stage and are now ready to start the implementation itself. We are sure that with Relex, Magnit will get huge business benefits. We look forward to the quick start of the project and the first results,”—added Stefano Scandelli, RELEX’s Senior Vice President for EMEA&APAC.
