The Loadhog Solution Transforming In-Store Replenishment at DM Drogerie Markt CZ

DM Drogerie Markt CZ, one of Central Europe’s leading drugstore retailers, continues to optimise its supply chain to support a growing network of stores across the region.

With 265 stores in the Czech Republic and 162 in Slovakia, the retailer required a smarter way to deliver products from its distribution centre directly to the shop floor while reducing manual handling, packaging waste and operational costs.

The old replenishment process involved transporting goods from the logistics centre in reusable totes stacked on pallets and secured with stretch wrap. Once deliveries arrived in store, employees were required to unpack the goods in the backroom, transfer containers onto dollies, replenish shelves manually, fold and stack empty totes onto pallets, wrap them in stretch film and prepare them for return transport. This process was labour-intensive, generated unnecessary waste and reduced the time store assistants could spend serving customers.

To transform this workflow, Loadhog supplied:

5,760 Pally 86 units
Half-Euro Lids
Tamper-evident seals

The Pally System created a seamless end-to-end logistics solution:

Goods are picked and packed at the distribution centre directly onto Pally units.
Each transport unit is secured with a Loadhog Lid, tamper-evident seal and identification labels.
Pally units are delivered directly into stores without the need for additional handling equipment such as pallet trucks or forklifts.
Store assistants wheel the Pally 86 straight to the aisles and replenish shelves directly from the transport unit.
Once emptied, the Pally 86 and Lid return to the distribution centre for reuse within the closed-loop supply chain.
By eliminating unnecessary handling stages, DM achieved its objective of ensuring products are handled only once before reaching the shelf.

Faster In-Store Replenishment

The mobility of the Pally 86 allows store assistant to move products directly into the aisles, removing the need to unpack deliveries in the stockroom or transfer goods between different handling equipment. The result is a significantly faster replenishment process that saves 7,560 working hours annually, while allowing employees to spend more time assisting customers and driving sales.

Eliminating Stretch Wrap and Reducing Waste

The combination of the Pally 86, Half-Euro Lid & seals removes the need for stretch film throughout the transport process. Over the first year of operation, DM eliminated almost 7 tonnes of stretch wrap, reducing packaging waste while saving €23,647 in stretch film purchasing costs.

Easy Implementation with No Warehouse Changes

One of the major advantages of the project was the simplicity of implementation. Because DM’s distribution centre already operated using Half-Euro pallet dimensions, the Pally System integrated directly into existing warehouse processes without requiring infrastructure modifications or additional implementation costs.

Measurable Operational Benefits

Between May 2025 and April 2026, the system completed approximatively 75,600 transport movements across 13 reuse cycles, delivering measurable improvements throughout the supply chain, including:

2,091 hours saved in packing operations
17.99 tonnes reduction in CO2 emissions
A calculated return on investment of just 9.8 months
The durability of the Pally System has also proven highly effective. Across thousands of transport cycles, only 44 Lids, and 3 Pally units required replacement, demonstrating the robustness expected from a long-term returnable packaging solution.

At Loadhog, we design returnable packaging systems that improve logistics performance at every stage of the supply chain. For DM Drogerie Markt CZ, the Pally System has delivered a simple but highly effective solution that reduces costs, increases productivity and enables store teams to focus on what matters most: serving customers.