Supply chain automation for distributors

The vending management service allowed Lyreco to monitor the live operational performance of the Nespresso machines and their usage so coffee capsules could be dispatched before they were needed and field technicians as soon as a critical fault was detected.

COST-EFFECTIVE SERVICE ASSURANCE

Considerable improvement in customer service levels with out-of-order and out-of-stock issues being reduced to nearly zero.

OPERATIONAL COST SAVINGS

Management of the stock can be fully automated and based on their real-time usage, saving both fuel and money.

FUTURE PROOF

Adoption of the vending application based on the leading IoT platform gave Lyreco reassurance for future requirements

Lyreco is one of the leading global distributors of office and work supplies, delivering 235,000 boxes every day at a 99.4% service rate from 400,000 m2 of distribution centres using 1,750 vans and drivers.

Operating in 45 countries on 5 continents and employing 10,000 staff globally, Lyreco generated a turnover of 2 billion Euros in the 2015 financial year.

Business need

Lyreco takes 61,000 orders a day for its catalogue of 8,500 products and constantly strives to reduce its ecological footprint in the fulfilment of each order whilst ensuring its high-levels of customer satisfaction are maintained. To achieve this Lyreco actively adopts world-class techniques (having gained ISO 9001 Quality Assurance and ISO 14001 Environmental Impact compliance) and promising technologies (with the Lyreco smartphone app launched in 2015).

Lyreco is a key supplier for Nespresso premium coffee and coffee machines for businesses. Offering a great quality cup of coffee shows you care about small detail and it creates a positive impression of your workplace. Studies have shown that a company that serves Nespresso cares about quality, customers and attention to detail and increases profitability.

Nespresso customers expect the highest quality from the product, the machine and the service. Lyreco sought to ensure that every Nespresso customer would always be served the highest quality whenever they desired, and in the most ecological way.

Solution

Supply chain automation for distributors
Lyreco adopted the VendMe vending machine, stock and operations management application – powered by the Cumulocity IoT platform – with real-time machine, stock and sales analysis, configuration of Lyreco specific machine operation and stock level business rules and integration to the Lyreco business systems.

  • VendMe vending machine, stock and operations management application
  • Dedicated Edition of the Cumulocity IoT Platform
  • Vending machine telemetry devices and cellular connectivity
  • Fully integrated to Lyreco SAP Enterprise Resource Planning (ERP) system
  • Formulation and deployment of vending operations specific business rules
  • Android and iPhone smartphone vending operator app
  • Set up and available in 2 weeks
Raoul Marechal

The Cumulocity IoT solution for our Nespresso Capsule Dispensers helped us to reduce out-of-order and out-of-stock situations to a minimum. At the same time we were able to reduce cost by improving our operational processes. Our employees now benefit from having a real-time view on machine data during daily work on customer sites, and via integration of the machine data into our SAP system.

Raoul Marechal, Technics and Operations Manager Lyreco

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