PriceSmart enhances supply chain and merchandising capabilities
PriceSmart is deploying advanced forecasting, replenishment, and promotion planning solutions.
The U.S.-based operator of warehouse club stores in Central America, the Caribbean, and Colombia is implementing technology from Relex to support its supply chain and retail planning strategies.
PriceSmart has a complex product assortment, including ambient and fresh products, and an intricate supply chain spanning 12 countries, each with unique requirements. The company will implement Relex supply chain and merchandising solutions across its 52 stores throughout Central America, the Caribbean, and Colombia.
As a result, the retailer seeks to reduce inefficiencies while improving forecast accuracy, product availability, and operational cost and efficiency. PriceSmart is undergoing a strategic transition in its back-office systems and processes and will consolidate its forecasting, replenishment and promotions planning onto the Relex platform.
In addition, PriceSmart will boosting membership renewals through targeted promotions designed to encourage increased customer engagement. PriceSmart is upgrading its supply chain and merchandising environment as part of a broader digital transformation initiative begun in January 2023 to streamline operations for ambient and fresh goods, fast- and slow-moving goods, and make-to-sell and break-to-sell items.
"As a leading operator of membership warehouse clubs across multiple regions, our supply chain complexities needed a robust solution," said David Price, PriceSmart chief transformation officer. "Relex Solutions provides the capabilities we need to improve our operational efficiency and product availability. This move is a key part of our digital transformation, and we're excited about the potential of increased member engagement through targeted promotions."
"We are thrilled that PriceSmart has chosen Relex to enhance their supply chain and retail planning strategies," said Michael Falck, Relex co-founder and president, North America, “Relex Solutions. "We understand the intricacies of managing retail operations across a diverse product assortment and a supply chain that spans multiple countries. With our unified supply chain and retail planning solutions, we're confident in our ability to cater to PriceSmart's unique demands. We look forward to supporting them in their digital transformation efforts, driving improvements in their forecast accuracy, product availability, and overall operational efficiency."
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean. The retailer operates 52 warehouse clubs in 12 countries and one U.S. territory (10 in Colombia; eight in Costa Rica; seven in Panama; five in the Dominican Republic and Guatemala, four in Trinidad; three in Honduras and El Salvador, two in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). In addition, the company plans to open a warehouse club in Escuintla, Guatemala in November 2023 and a warehouse club in Santa Ana, El Salvador in early 2024. Once these two new clubs are open, PriceSmart will operate 54 warehouse clubs.