AgroHub automates its inventory management processes with LEAFIO AI retail solutions
AgroHub, established in 2016, presents itself as Georgia’s first natural-product supermarket chain and operates in two major cities.
Its vertically integrated model encompasses livestock farms, dairy products, prepared foods, bakery and other production lines, alongside an assortment of approximately 10,000 FMCG SKUs.
LEAFIO replaces a slow, experience-based ordering process that caused both out-of-stocks and overstock with automated order generation.
AgroHub reports a 12% reduction in average stock while sales increased 18%, with surplus down 39%, lost sales down 37% and product turnover accelerating by six days, or 11%.
please tell us about the aggregate company i will have is the first natural product supermarket chain in republic of georgia what do you think was the key success factor after implementing this lithium program we started to make the correct orders what is retail automation for you less chance of the mistakes hello my name is elena cipanek and i am the product director of life inventory management and today we are in georgia to have a chat with the deputy commercial director of the agrohub company taimoras girgobiani [Music] i'm so pleased to meet you here thank you very much please tell us about the agra hat company how long has it been in business and where did it all start thank you for a visit agrohub is the first natural product supermarket chain in republic of georgia it was established in 2016 and now it operates in two major cities in georgia from the very beginning our mission was
to ensure delivering the highest quality products to our customers in order to fulfill this mission uh agro hub decided to take control on the product development on each level so for nowadays agrohub owns its own farms of beef pork and poultry also agrohub has its own production of the milk products uh it produces over 100 uh different types of cheese aloha has its own production of hot and cold cousin with the confectionery and bakery also also agrees presented with the wine cellar with 14 different kinds of georgian wines here in georgia and also different different lines of productions like conservation like frozen and semi-appropriate products and the ice cream also besides this agrohub is also the importer of about 200 skus of fresh products and 1500 skus of
fmcg products and together with our own production and imported production so we have around 10 000 skus of fmcg products which is delivered from different suppliers your approach to the company development is quite interesting please tell us more about your current processes and what could you say about your current inventory management setup in this part now we are using a lipo program which was started from one from the first store as a test and now it leads to the all our stores and the ordering process is done automatically in the system and how did it work before what problems did you face uh what tools did you use before the manager particularly were doing the ordering process manually based on their
own experience and figures in the system so it took a long time and also it led to auto stocking some products and overstocking other products so to say in one world we have the problems with the quality of the order when exactly did you decide to automate this process and what triggered it after we opened the new stores we figured out that for sure we need the optimization of the process because at lots of time things like this we have already mentioned and after opening the second store we decided to look for the companies who are preparing such services and we decided to make the optimization of the ordering process okay and could you please tell about the process of choosing the vendor and why did you select us as a vendor we have several partners here in georgia and both which are using the fuel program
and it was a recommendation from them from their side so when we looked through feedback and we were satisfied so we go through the process okay thank you very much nice to hear it and what were your expectation from the solution did you have some specific targets you wanted to reach basically we wanted to increase the efficiency of the processes and to release more time for for our managers to be more specific we wanted to decrease the level of lost sales we wanted to decrease the auto stock level and the overstock level with this problem and what changes have you achieved as a result of the implementation the positive dynamic is visible in all indicators for example the average stock was decreased by four percent uh while the on the other hand the turnover increased by 18 percent the
average stock excess decreased by 39 and the low sales decreased by uh 37 together with item turnover days which was decreased by eleven percent what do you think was the key success factor in this project for your company you know after after implementing this litho program we started to make the correct orders which is helpful for every department in our chain for example the receiving and warehouse is not overloaded anymore the store operation side is more effective efficient commercial managers are more oriented on the analytic analytical side of the business because they have more time to do their job not to make the routine work and also the financial requirements are improved so all the factors are saying but the process is going well [Music]
Key takeaways
Chapters
Q&A
AgroHub is a natural-product supermarket chain established in Georgia in 2016. It operates in two major Georgian cities and aims to ensure product quality by controlling development and production at multiple levels. — Teimuraz Giorgiobiani
LEAFIO was initially tested in one store and then expanded across the chain. Store ordering is now generated automatically by the system. — Teimuraz Giorgiobiani
Managers prepared orders manually using their own experience and system figures. The process took considerable time and led to out-of-stocks for some products and excess inventory for others. — Teimuraz Giorgiobiani
Opening additional stores made the inefficiency of manual ordering more apparent. AgroHub concluded that it needed to optimize the process before continuing to scale. — Teimuraz Giorgiobiani
Several of AgroHub’s partners in Georgia already used LEAFIO and recommended it. Their feedback gave AgroHub confidence to proceed with the implementation. — Teimuraz Giorgiobiani
The company wanted more efficient processes, more time for managers and reductions in lost sales, out-of-stocks and excess inventory. — Teimuraz Giorgiobiani
AgroHub reports improvements across its measured indicators: average stock decreased, sales increased, surplus and lost sales fell, and product turnover accelerated. — Teimuraz Giorgiobiani
More accurate ordering improved operations throughout the chain: receiving and warehouses were no longer overloaded, stores became more efficient, and commercial managers gained time for analytical work. — Teimuraz Giorgiobiani
Quotes
“The ordering process is done automatically in the system.” — Teimuraz Giorgiobiani
“After implementing this LEAFIO program, we started to make the correct orders, which is helpful for every department in our chain.” — Teimuraz Giorgiobiani
“Commercial managers are more oriented toward the analytical side of the business because they have more time to do their job, not to make the routine work.” — Teimuraz Giorgiobiani