Success Story: Monoprix

Busy retail stores and a new e-commerce site give customers what they want, when they want it

  • Headquarters

    Clichy, France
  • Industry

  • Challenge

    Monoprix needed end-to-end visibility across its outbound logistics supply chain to ensure reliable order fulfillment and timely store replenishment

  • Solution

  • Results

    • Reduced operational risk, ensuring that orders aren’t lost, delivery deadlines aren’t missed, and stores aren’t out of stock 
    • Process optimization through fine-grained analyses of processes to identify which orders take too long
    • End-to-end visibility over the order fulfillment process, with predictive analytics, so warnings can be issued about problems that will occur unless action is taken
    • Enhanced customer experience, both for in-store customers who can always find their favorite products, and for online customers who can obtain real-time information about their order

A Leading French Retailer

A major presence on the ground – and now online

A major French retail chain, Monoprix serves 800,000 customers each day, offering some 30,000 products including groceries, clothing, household items, hardware and gifts. In addition to its new e-commerce site, Monoprix has more than 500 stores in France and over 90 worldwide. The retailer also opens 5 new stores every week. With 21,000 employees, Monoprix had a turnover of €4.2 billion in 2014.

Ensuring Store Replenishment

The need for end-to-end visibility

Every day, Monoprix receives orders from its stores and from individual customers who purchase goods through its e-commerce site. The company needs to ensure reliable order fulfillment – whatever the source of the order – and meet SLAs for the timely delivery of goods to stores and end customers.

In its flourishing brick-and-mortar business, Monoprix has to ensure timely store replenishment to avoid out-of-stock situations that could lead to a loss of revenue, customer churn, and harm to the corporate image. Much of its stock is replenished with just-in-time delivery, making it essential to have real-time visibility into the status of orders.

To manage its outbound logistics, Monoprix had a number of different IT systems, each of which played a specific role in the supply chain. As business expanded, the IT systems became more complex, and orders often became blocked in one of the systems without anyone noticing it. Usually, the problem only surfaced when a delivery deadline was missed – far too late to meet the SLA and customer expectations.

With the addition of new digital client channels, Monoprix realized it needed a solution that would provide end-to-end visibility over the entire outbound logistics supply chain, and be able to detect abnormal situations and generate alerts so problems could be resolved rapidly.

“ One of the key advantages of Axway’s solution was the ability to rapidly deploy a lean pilot. We could have a proof of concept in a matter of days.”

 

Managing Outbound Logistics

Choosing Axway Decision Insight

To provide oversight of outbound logistics and support the development of new digital client channels, Monoprix decided to deploy a solution that would interface with existing IT systems. The solution would have to:

  • Provide end-to-end monitoring of data flows and business processes 
  • Model the entire order lifecycle to ensure orders aren’t lost in the company’s heterogeneous IT systems, which implement a variety of communication protocols
  • Send an alert when an order is blocked, with an escalation process to ensure rapid resolution of the problem
  • Analyze the financial impact of blocked or incomplete orders and determine the level of intervention required
  • Ensure that stores receive delivery on-time
  • Provide an audit trail that captures the history of every order and determines how long it took to transit the system

After examining several market-leading products, Monoprix selected Axway Decision Insight. “One of the key advantages of Axway’s solution was the ability to rapidly deploy a lean pilot,” said Jérôme Simon, Implementation Team Manager at Monoprix. “We could have a proof of concept in a matter of days.”

To deploy the solution, Axway Decision Insight was plugged into every IT system involved in outbound logistics so it could monitor each order as it went through the fulfillment process – from order entry and stock management to delivery by the company’s logistics service providers.

The project launched in February 2015 and went live with full-scale deployment in June.

Today, the Axway solution monitors an average of 200,000 orders — a value of several million euros — per day across all stores.

Launching a New E-Commerce Site

Guaranteeing same-day or next-day delivery

In December 2015, Monoprix launched a new, fully integrated e-commerce sales channel. Customers could now place orders online and arrange for home delivery or pickup in the store of their choice.

In France, lead-times for home delivery have become increasingly short, with same-day or next-day delivery increasingly the norm. To compete effectively and meet customer demand, Monoprix committed to provide home delivery of a customer’s entire e-commerce order within 24 hours, and offered same-day service for in-store pickup. 

For Monoprix to make good on these commitments, customer orders had to be processed efficiently, with no orders lost. Any problems needed to be flagged and rapidly resolved. But, when the retailer first launched its e-commerce platform, it had no visibility over the end-to-end process and didn’t know whether it was meeting its SLAs. 

To fix this, Monoprix deployed Axway Decision Insight over the e-commerce platform to monitor all customer orders and ensure the company could meet its commitments.

Governing the Flow of Data

Using dashboards to monitor the order fulfillment process

To supervise the order fulfillment process, Monoprix now relies on a series of dashboards provided by Axway Decision Insight. These include:

  • Stock Dashboard: Detects orders blocked in the system 
  • Failure Dashboard: Detects rejects in the system 
  • Search Dashboard: Locates a particular order, for example
  • Audit Trail Dashboard: Captures the end-to-end trajectory of one or more orders

These dashboards provide the leverage to intervene in real time to resolve issues and allow Monoprix to meet its SLAs with customers and stores alike.

“With Axway Decision Insight, we can identify order errors in real time. By doing this upstream, we avoid tens of thousands of euros’ worth of blocked orders every day.”

 

Reduced Operational Risk

Benefits of the Axway solution

With Axway Decision Insight now deployed across Monoprix’s outbound logistics supply chain, the company has seen an array of benefits:

  • Reduced operational risk. Now, orders aren’t lost, delivery deadlines aren’t missed, and stores aren’t out of stock. “With Axway Decision Insight, we can identify order errors in real time,” said Simon. “By doing this upstream, we avoid tens of thousands of euros’ worth of blocked orders every day.”
  • Process optimization. Monoprix can now do a fine-grained analysis of processes to identify which orders take too long, determine the source of the problem and modify its processes accordingly.
  • End-to-end visibility. Monoprix now monitors the entire order fulfillment process and has a predictive analytics capability so that warnings can be issued about problems that are likely to occur unless action is taken. 
  • Enhanced customer experience. In-store customers can find their favorite products and online customers can obtain real-time information about their order.

“Axway Decision Insight plays a critical role for Monoprix as it enables us to secure the processes that underlie our core business,” said Simon. “With Axway’s solution, we can protect our two main sales channels: our stores and our e-commerce business.”

Next Steps

New applications for Axway Decision Insight

Monoprix ramped up its deployment of Axway Decision Insight to cover new capabilities and systems in 2016. These include:

  • Monitoring the customer loyalty card system, including all data flows involving use of the loyalty card, both in stores and online, focusing on two aspects: marketing and accounting
  • Providing technical monitoring for batch processes run by the commercial batch scheduling software deployed by Monoprix
  • Monitoring extensions to applications that are already in production on the e-commerce site and in the stores’ supply chain system

Looking ahead, Simon said, “At Monoprix, we’re very satisfied with Axway’s solution because it clearly meets our needs. Going forward, we plan to continue to invest in the solution and deploy it for new applications.”

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