Major US Retailer Simulates Investment Decisions to Minimize Risks and Reduce Costs

Evidence based decisions

A major retail organization in the United States consisting of convenience and petroleum stores, uses SIMUL8 software to simulate almost every process in its operation.

With a strong focus on the customer, the retailer aims for specific levels of service throughout the organization, so it’s important that every decision made is right first time. SIMUL8 is used on a daily basis to give management the evidence they need to be confident that the decisions they make are the right ones.

Cost avoidance

When a store holder requests an investment of any kind (equipment, staff etc) a simulation of the store is created to test the impact of the investment. This allows the retailer to experiment with different scenarios to find the best fit for each store without the risk of putting any investment in place.

The simulations consider a number of variables linked to customer satisfaction including demand, customer arrival rates, equipment utilization, customer service levels, and the profit that can be gained from each investment.

This approach saves the retailer $500,000 annually in cost avoidance of not purchasing and installing excess equipment and has resulted in improved levels of customer service.

The versatility of SIMUL8 software ensures it will continue to be used as a key part of upcoming projects within the retailer from equipment investment to minimizing customer queuing times.