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2015 TOCICO International Conference

Transforming Businesses Track

Amir Schragenheim
Founder and CEO
Inherent Simplicity
Implementing TOC in a Large Supermarket Chain
September 7, 2015

Presentation Objective: A Case Study - Share the challenges in implementing TOC in a large chain of convenient stores in Europe. How did some of the basic concepts of TOC and pull distribution fail within an environment that is very influenced from promotions and weekend sales, and the solutions that were developed in order to overcome it.

Material covered in the presentation:

·       Dealing with weekend sales

·       Dealing with promotions

·       A real life case of a company that implemented this idea to their benefit

Attendee Benefits:

1.     Learn how to deal with small buffers in retail stores.

2.     Learn how to take into consideration minimum representations.

3.   Learn how, by analyzing data and automating decision making and replenishment - stores performance can be  improved.

4.     Learn how one information system can aggregate data from thousands of franchisees.


When using buffers in FMCG retail stores, we face large amounts of buffers that are not always in line with their sale’s behavior, but are there because of shelf presentations.

Most stores are small and are located in the center of the cities, hence have very little space for storage. While, 50%-70% of the sales occurs during the weekends, because of space constraint, the store’s owners order only what they can hold in the back room.

Also, in this business there are a lot of promotions. Every week 15% of the store’s merchandize is on promotion, which makes consumption very hard to predict and hard to react.

Only by introducing one centralized system, and by analyzing real time data from different franchisees across the whole chain we were able to understand real patterns and develop unique solutions and SOPs for these kind of environments.

AMIR SCHRAGENHEIM, founder and CEO of Inherent Simplicity - a TOC software company which is part of the Goldratt Group, is active in the TOC community for over 15 years.

Amir has been involved deeply in knowledge developments in TOC and is considered to be one of the world experts in Production, Distribution & Retail for TOC implementations and has been recognized as such by the late Dr. Eli Goldratt himself. 

Amir developed several computerized TOC educational and simulation tools along with Eli Schragenheim. Amir participated in analyzing the solution and developed the software for TOC implementations in the healthcare industry including A&E and Operation Theatres. Amir holds an MBA from Tel-Aviv University Magna Cum Laude.

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