Case Study: Rautakesko (K Group Building & Technical Trade Division) reduces inventory and automates 90% of replenishment with RELEX Solutions

Rautakesko - Customer Case Study

Rautakesko (now the Building & Technical Trade Division of K Group) is Finland’s leading building and home-improvement products company, with €2.9B revenue and 360 stores across eight countries. The business faced fragmented, decentralized wholesale purchasing supported by Excel, SAP and Logisticar, which made replenishment slow, labor-intensive and poor at controlling inventory. Rautakesko’s goals were to automate routine purchasing, reduce inventory value and secure availability.

Rautakesko engaged RELEX to analyze and simulate improvements, then implemented RELEX Processor and Optimizer and centralized wholesale replenishment into a single team. The solution was integrated with SAP R/3 and rolled out within six months, achieving roughly 90% automated order lines and automated quantity/timing tailored to supplier constraints. The result was significantly lower inventory value, fewer purchasing personnel, maintained availability, faster cash release and a payback measured in months.

Rautakesko

Olli Salmivaara

Logistics Director