| Chain retail business model has been developing for more than 20 years in China, with the revolution of internet communications technology, the number and the size of retail companies were also under the explosive development in the last 10 years. When chain retail companies are at different stages of development, its supply chain management and service level requirements are also different.Chain retail companies in the early stage of development, due to small network size and the number of merchandises are less, so it can use the pull replenishment method to achieve store replenishment. The method of replenishment is based on the general merchandise store that average sold in the last 7 days plus the salesperson make subjective judgments to determine volume. Because of fewer number of stores, and its distribution is more concentrated, so the Distribution Center operations to pick with the level of demand and transportation planning is not very high, while smaller scale Distribution Center, so picking method with general sorting strategy have to meet the needs of picking with shipping.When chain retail companies went into the fast growing stage, with the rapid growth in the number of stores, expanding the geographical distribution, and category of goods in the sales increases in the emergence of regional commodity series, the frequency of seasonal bulk procurement planning and execution increased and huge of funds involved, and in order to achieve lower overall inventory costs, lower stock-out rate, improve customer service and other enterprise management objectives, its responsiveness and supply chain management requirements are also increased. These requirements are primarily performance based planning in the stores need to combine their overall marketing strategy to develop the sales of stores replenishment planning and replenishment quantity and distribution centers to face more and more "multi-orders and small quantities", the store replenishment orders to pick with job requirements. If these needs are not timely met and resolved, it will lead to high inventory levels of enterprises, taking up a lot of money, and because of bottlenecks in distribution center operations, and it also will lead to the growing supply chain response time, and difficult to adapt to the changing competition in the market demand.This paper focuses on these two points needs to do a thorough research. In order to solve the problem of store replenishment, this departure from the EOQ (Economic Order Quantity) model, adding the actual business operations of the store replenishment calculation of factors, including: replenishment calendar, weather factors, seasonal factors, marketing activities factors, the average sales stage factors, peak factor, safety stock factors, minimum distribution amount factors, the numbers of display slots, and after the simulation calculated a large number of stores replenishment formula. Starting from the formula of store replenishment, adding purchasing quantities, lead time, warehouse safety stocks, and many of other factors, derive DC (Distribution Center) replenishment formula.In order to solve the problem of the efficiency of distribution center operations, the paper proposes Wave Picking strategy instead of Order Picking strategy. While in order to improve Wave Picking effective, we use the ABC classification of the put away strategies and by redesign the transport routes for regional transportations. Finally, through a practical project shows how to build a system which based on SAP ERP platform to achieve these supply chain optimizations. We implement these requires via developing and customizing in SAP system to achieve the pull and push replenishment store replenishment and procurement platform DC– Procurement and Replenishment platform, and show the key steps in customizing Wave Picking strategy with ABC classification put away strategy in SAP WMS (Warehouse Management System). |
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