METRO

Success Story

METRO

Demand Planning, Fulfillment

Food wholesaler METRO achieves record product availability with Blue Yonder

The company

Headquartered in Düsseldorf, Germany, METRO is a leading international food wholesaler specializing in serving the needs of hotels, restaurants, caterers (HoReCa), and independent merchants (traders). METRO’s retail network includes over 600 stores in 21 countries. Most of METRO’s stores offer delivery, and the wholesaler also operates its own delivery company to support direct sales. Around the world, METRO has approximately 15 million customers through all of the wholesaler’s channels.  

The business challenge

Product availability is crucial to METRO customers whether delivered or purchased in-store. METRO must maintain healthy stock levels while fully utilizing its inventories, trucks, labor, and other resources— something its existing systems and processes could not manage. With this complexity, METRO needed digital planning solutions to maintain a profitable balance between supply and demand. It also needed to operate a resilient, agile supply chain in the face of changing demand levels, disruptions, and economic trends.

The solution

METRO relies on Blue Yonder supply chain planning solutions—including demand and fulfillment planning—to keep product availability and profit margins high. These intelligent solutions enable METRO to optimally balance ambitious customer service targets with inventory controls and accurate resource planning. The wholesaler has implemented Blue Yonder planning software across 16 countries and achieved record availability levels. Five more countries are to be rolled out the solutions. 

“An omni-channel sales model is at the heart of METRO’s business, which creates planning complexity. Blue Yonder demand and fulfillment solutions have upgraded our planning speed, precision, and results across our end-to-end network. We can balance high availability and high customer service with cost controls and strong financial results. Blue Yonder has also improved our resiliency by allowing us to make fast, fact-based decisions when the unexpected occurs.” 

Alexander Stepannikov, Supply Chain Planning & Ordering Domain Owner, METRO Digital. 

Achieving 97% product availability

Leading food wholesaler METRO operates a complex supply chain with products sold at physical stores and directly delivered to hotels, restaurants, grocers, and other food-service businesses.

These small- to mid-sized customers depend on timely, in-full deliveries from METRO and high levels of in-store product availability to meet their customers’ needs. This pressures METRO to achieve “just right” inventory levels while supporting fast stock turnovers and avoiding excess inventory investments. Accurate planning is also critical to fully utilize METRO’s trucks, labor, and physical space investments.

METRO rolled out Blue Yonder demand planning and fulfillment planning software across 16 countries to increase its supply chain planning accuracy. This was a significant upgrade from the company’s existing manual processes and legacy software solutions.

“Our intelligent Blue Yonder solutions have been a core enabler of planning optimization at METRO,” says Alexander Stepannikov, Supply Chain Planning & Ordering Domain Owner at METRO Digital. “By relying on advanced digital solutions to ingest data, perform rigorous analysis, and create accurate plans, we can meet our defined customer service targets while respecting stock and capacity planning constraints.” Stepannikov credits the Blue Yonder Services team with architecting the solution footprint and providing hands-on implementation support.

As the Blue Yonder solutions have been implemented across multiple countries and channels, METRO sees that related countries demonstrate, on average, a 1% higher availability with better stock performance right from the moment of implementation. This improvement further evolves along with the planning maturity development in the countries.

The availability of goods is one of the key strategic goals of METRO's core strategy. METRO has the ambition to reach 98% of product availability by 2030. In line with this goal, in the financial year October 2023 - September 2024, METRO’s cumulative availability has grown from 96% to 97%. Today, Blue Yonder planning software manages more than €15bn sales volume. The global blueprint implementation will be rolled out in five more countries.

Increasing resilience with fast, data-driven decisions  

Over the last few years, METRO has experienced significant supply chain disruptions such as the global pandemic, war in Ukraine, and the Suez Canal blockage. However, Stepannikov notes that Blue Yonder has successfully helped the company navigate these disruptions.

“We see consistent proof that the Blue Yonder’s supply chain planning blueprint performs better than our former way of working,” says Stepannikov. “Especially during major supply chain challenges, our operations in countries with Blue Yonder software have shown strong resilience and improved supply chain agility. With its intelligent optimization engines, Blue Yonder enables us to consider current data and make the right decision very quickly, no matter what surprises occur.”

Related success stories

  • From their first grocery store in 1960 through to today and beyond, Harris Teeter’s secret sauce is innovation. Whether it’s opening the first fully air-conditioned grocery store in North Carolina, providing innovative wine & beer bars or pursuing Uber-like mobile shift postings, innovation is a core culture at Harris Teeter. They wanted the same level of innovation from their workforce management solution. Learn how they achieved it with Blue Yonder.

  • With €32.9 billion in annual sales, Sainsbury’s is a trusted brand, loved by millions of UK consumers. The retailer operates over 600 supermarkets and more than 800 convenience stores. Karen Brown, Deputy Chief Technology Officer, discusses how Blue Yonder is helping the retailer leverage artificial intelligence (AI) and machine learning (ML) to improve forecasting, optimize store orders, and increase sustainability.

  • For UK-based grocery retailer Morrisons, serving its more than 11 million customers starts with making sure the right products are in the right place. Discover how Blue Yonder helped the organization increase shelf availability of over 29,000 SKUs in 130 categories across its 500 stores.

  • “At Robinsons Supermarket, we consider Blue Yonder as one of our core solutions. By tapping into their solution’s transactional and database management capabilities, we streamlined our processes, increased our productivity, enhanced our understanding of our customers and did our operational tasks and activities more efficiently. Simply put, Blue Yonder helped us achieve our mission of putting our customers at the heart and center of our business.” -Information Systems Delivery Manager