Promart Homecenter ships over 6 million packages a year using Oracle Cloud SCM
The Peruvian home improvement chain reduces logistics costs and optimizes its retail chain operation using Oracle Warehouse Management Cloud.
“With the implementation of Oracle Warehouse Management, we have gained a lot of efficiency in the distribution center with clear and defined processes, which allow us to have a very fast operation. By using SaaS technology, we are no longer thinking about having equipment or computer centers. The implementation time is zero in each of the distribution centers or stores. Now we dedicate our time to training.”
Business challenges
Promart Homecenter, a member of the Intercorp group, is a Peruvian home improvement chain, offering construction materials, appliances, furniture, decorations and other items. Since opening its first store in 2011, Promart today has grown to 32 locations throughout Peru, more than 5,000 employees, and a market penetration of 32%.
Promart was looking to expand its stores in the Peruvian provinces and gain operational efficiency in its distribution centers. However, the company was using software from a logistics operator that lacked key features, such as the ability to determine critical actions like sectorized or specialized picking of certain types of products. The software was also unable to identify the merchandise that was ready for dispatch.
To support its expansion efforts, Promart required more powerful software that would allow the company to run its operations more efficiently.
Oracle is a strategic partner for us, now and into the future. Because Oracle makes annual improvements to its products, our company can continue to take advantage of new features and the world-class processes it implements.
Why Promart Homecenter chose Oracle
Ultimately the company selected Oracle as its supplier because it would enable the retailer to have its software integrated with the Intercorp Group's operations, with all retail stores, supermarkets, department stores, and pharmacies running on Oracle technology.
Results
Implementing Oracle Warehouse Management allowed Promart to reduce logistics costs from 4.6% to 3.2%. The on-time, in-full performance times improved from 85% deployment to 98%. Promart saw significant improvements in dispatching and has reduced manual processes.
Oracle Warehouse Management, part of the Oracle Cloud SCM suite of applications, has also allowed the company to grow its operations. In addition to store expansions, Promart now has four distribution centers along the coast of Peru, which has helped make direct imports from the region’s main ports more efficient.
Promart saw a significant improvement in the efficiency of its distribution centers, with clear and defined processes that have helped speed up operations. As an added benefit, Promart’s stores have gained more insight into merchandise shipments and are now able to see when specific items will arrive from the distribution centers.
In addition, when Promart resumed operations during the pandemic, sales orders and purchase orders from suppliers increased by 60%. Oracle Warehouse Management Cloud helped Promart absorb the increase in sales and ensure that shipments arrived on time.