How SPAR Hypermarket reduced their order processing time by more than 50%

spar hypermarket
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Company Overview:

A strategic amalgamation of the Dubai based Landmark Group’s Max Hypermarkets India Pvt. Ltd and Amsterdam based multinational franchise SPAR gave rise to SPAR Hypermarket in 1932. Through years it has spread to 12500+ stores in 44 countries across 4 continents. Currently, there are 25 stores across 9 cities in India itself. With a strong core value that is a commitment towards Freshness, Choice, Value, and Services, the Brand has successfully captured the market. And it has made a difference in the lives of Teams, Customers, Communities, and Shareholders, every day.

SPAR Hypermarket’s customers comprise family consumption groups with values and aspirational needs. They typically range from the affluent segments to the pure value-seeking section. The majority of customers belong to the 25+ age group. There is a healthy mix of demographics and age groups that visit the stores.

Coming to the products, “Freshness” has always been a prime focus area and a competitive strength of SPAR. To provide the same, they have always pioneered processes, practices, and supply chain techniques that help to maintain and boost freshness at all SPAR India stores. Their main motive has always been to offer the best services. They believed it is a powerful combination of all their services and the convenience that they provide to their customers, which makes them come back every time. Their goal is to help their customers and their families to enjoy a healthier life, by spending less and saving more.

Challenges faced:

SPAR Hypermarket wanted a more efficient Supply Chain processes by reducing the manual processes and paperwork for registering suppliers. 

Their products are majorly perishable. To stick to their core values of providing fresh food, they introduced a section called ‘Freshly’ which provides value-added services to their customers. Here, the customers get fresh fruit juices, salads, and other food items that are made freshly for them. Moreover, they were planning to move to the e-commerce section too. The idea was to provide an e-commerce system with multi-channel capabilities to add to the existing brick-and-mortar customers and to acquire new customers. Their biggest challenges were :

– Converting the orthodox hypermarket to an Omnichannel ready ecommerce enterprise.

– Reducing manual processes and paperwork for registering suppliers for the entire business.

– Automating processes to efficiently track acknowledgements of a purchase order from suppliers, shipments, and payments.

– Preventing loss due to delays in procurement.

– On-time cost-effective last-mile deliveries to the customer considering one order may contain meat, non-meat, fresh, frozen, and chilled items.

– To eliminate too many manual interventions in the approval process and implement a well-defined workflow.

Solutions: 

In response to the above challenges, SPAR Hypermarket opted for a digital Supply chain Management system where one-stop access solution for supplier onboarding, product offerings & registration, purchase orders, ASN, and invoice payments.

The implementation was led by analysis and it captured the challenges faced by each category. It also did a holistic analysis of “AS-IS” operations and the challenges faced by SPAR Hypermarket to identify the gaps and accordingly designed the TO-BE advanced ecommerce solution for smoother operations.  

A Supplier Portal was added to the platform which:

– Allowed the suppliers to register within 2 weeks.

– The Suppliers now can self-onboard themselves through collaborative platforms.

– They can view and respond to purchase orders immediately and upload ASN and Invoices directly.

– Suppliers can publish new product offerings on their portal.

– Suppliers can view their accounts ledgers and revert on payments status.

The platform made a direct integration with the supplier’s system through web services. The whole objective of reducing the paperwork and manual process was resolved by empowering the Suppliers with streamlined technologies.

End Result:

Due to the new Supplier empowered system, the Supplier registration processing time was reduced by 70%. Time reduced from 4 days to 1-2 days for processing a purchase order to suppliers. Mainly the pick-up and home delivery of food items got more efficient and helped in achieving operational efficiency and reducing errors.

Due to the reduction in manual processes and quicker delivery, the percentage of business lost due to time delays started dropping. As a result, there has been a significant rise in revenues with the reduction of losses.

But, was this system enough for SPAR Hypermarket to adhere to their motto of sending Fresh food items to their customers? On that note, Radha said:

Our biggest challenge was accurate inventory planning and ensuring the availability of the right quantity of the stock at the right time to be able to cater to our customers’ needs.”

 – Radha, CFO & Head Commercial for SPAR Max Hypermarkets

To overcome all the added issues, SPAR Hypermarket needed a comprehensive and robust solution which could efficiently handle its inventory across the supply chain and optimise it. It also wanted to know which products were likely to be stocked out soon, and the potential loss of sale from them.

How Eunimart will help:

SPAR Hypermarket, though they have already introduced digitisation in Supply Chain, it is clear that they needed a more comprehensive and robust solution. An end to end solution where SPAR Hypermarket’s Inventory Management to Warehouse Management, Payment solutions to Reconciling Supplier’s Invoice, prediction of sales to customer services, all will be bought together in one platform.

What better platform other than Eunimart can we think of for such a requirement.

Eunimart is one of the leading players in the market currently who is simplifying managing businesses with their advanced technologies. Eunimart is the most advanced Artificial Intelligence-based Omni-channel enabler.

With Eunimart’s digital Supply Chain Management, the Inventories can be allocated with prioritisation. Eunimart’s unified system can link all SPAR Hypermarket’s online and offline channels of sales to the Supply Chain and fulfilment solutions can control the end to end customer flow. They provide an ecosystem to manage sales and operations to SPAR Hypermarket’s customers and help them to reduce overall costs. 

For perishable goods to be delivered farm fresh to the customers, Eunimart can help SPAR Hypermarket to enable virtual warehouses and let the customers get live and real-time insights of their ordered deliverables. With the help of this advanced platform, it can assist SPAR Hypermarket to become omnipresent and use Data science to optimise their retail, ecommerce, domestic and global sales.

Eunimart also provides actionable insights via their Artificial Intelligence to beat competitors and create a competitive model. With advanced market intelligence, they can also help SPAR to predict top products in every category, top marketplaces, top sellers, best descriptions and will help to identify the best strategy to increase revenues.

In a competitive world where SPAR Hypermarket wants to have high operating margins while delivering the best fresh products to their customers, Eunimart can be the best partner to win over the market.