Elon’s growth increased the need for cost control

Elon is present in the Nordic countries of Sweden, Norway, Denmark, Finland and Iceland. Elon is now both Sweden’s and the Nordic region’s largest retail chain for consumer electronics and home appliances, with over 400 stores in Sweden alone.

Freight cost management

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Limited visibility into freight costs made follow-up difficult

Elon Group AB generates billions in annual revenue and offers everything from white goods and household appliances to lighting and heat pumps. In addition to in-store sales, e-commerce continues to grow rapidly.

Before implementing IMI’s solution, Elon had limited ability to understand and control its annual freight costs. There was no consolidated view of how costs were distributed across stores, orders, items and customers. At the same time, there were hidden costs, making it difficult to have a fact-based dialogue with carriers and identify deviations in agreements.

With more than 1,000 daily transports, the need for control became clear as the business continued to grow and the demands for follow-up increased. Markus Luthman’s previous experience with IMI’s solutions also contributed to the decision to choose the system.

With the solutions from IMI we get all freight related information available in one place. Here we can follow up all transport costs down to the store, order, item and customer level. We can also use standard reports at customer and item levels for Cost To Serve analyzes.

Markus Luthman

Logistics developer, Elon Group AB

Consolidated freight data improved visibility and control

The solution from IMI gave Elon a fully digitised platform for freight analysis and cost control. It functions in practice as much as a financial system as it does a logistics system.

All freight-related information is now gathered in one place, making it possible to follow up on transport costs at store, order, item and customer level. At the same time, the solution makes it easier to work with Cost to Serve analysis and gain a more precise view of profitability.

A key improvement is that costs are now automatically allocated to the correct department or store. This has simplified month-end closing and improved overall cost control.

The solution also includes easy-to-use deviation management modules, making it possible to identify and analyse discrepancies and share insights with carriers.

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Improved cost control and profitability insights

With IMI’s freight cost management solution, Elon expects to reduce freight costs by 3–5%.

The solution has also created a clearer link between logistics and finance. Elon now has better visibility into how costs are distributed and can connect transport costs to product and customer profitability. The company can also follow how deliveries to stores are carried out and what they actually cost.

Previously, there was no consolidated view of costs. Today, Elon can analyse them at a detailed level. This makes it possible to work in a more fact-based way with carriers, identify deviations and eliminate unprofitable processes. At the same time, the solution has improved the company’s ability to analyse, follow up and manage its operations.