ADVANCING RETAIL EFFICIENCY: EVIDENCE FROM CASE STUDIES ON AUTOMATIC REPLENISHMENT SYSTEMS

Abstract: This paper examines the efficiency and sustainability impacts of automatic replenishment systems (ARS) in grocery retailing. Based on two large-scale implementations—one in Serbia and one in the Netherlands—the study relies on multi-million–record datasets to assess reductions in out-of-stock (OOS) rates and the added value of managerial overrides. Results show that ARS consistently outperforms manual ordering: the Serbian pilot reduced OOS probability by 63 %, while the Netherlands case case achieved a 91 % automatic order acceptance rate, with only 15 % of manual upward changes preventing OOS. Overall, the evidence confirms ARS as a key driver of “hands-off” supply chains, delivering strong economic gains and measurable environmental benefits.

Keywords: Automatic Replenishment Systems, Inventory Management, Stock-outs.