We entered a supply chain transformation engagement focused on refining the inventory operations for one of the accustomed fashion retailers in America, perfecting their order fulfillment performance and customer experience benchmarks.
Business Goals
This client is a popular fashion apparel brand in the US known for its affordable product range. It has 1000+ retail stores and 10+ owned distribution centers. As they further extended their footprint in new locations, their fulfillment network was scaled with several new edge fulfillment nodes being established.
The fulfillment network expansion was not driving the expected results, as they were struggling to match the retail delivery performance of their major competitors. This problem was rooted in inventory planning inefficiencies, which prevented them from ensuring that the right SKUs were placed at the correct node, at the right time, and in the appropriate quantity.
Solution
We collaborated closely with this fashion brand’s inventory management team to analyze current inventory placement based on forecasted sales, distribution operations, and transportation costs. We jointly developed an algorithm designed to rebalance inventory across nodes through different approaches, such as product assortment analysis, dynamic carton allocation, and other frameworks
Key Highlights
- Constructed a user-friendly visual dashboard that enables the inventory planning stakeholders to make informed decisions regarding stock transfers between nodes.
- Dashboard includes a ‘what-if’ analysis feature, enabling well-optimized planning decisions amidst seasonal peaks and high-demand periods.
- This comprehensive solution ensured that inventory was strategically positioned across the network, optimizing fulfillment efficiency and market competitiveness.
Outcomes
- 20% reduction in split shipment cases.
- 10% increase in ‘ship-to-deliver’ record metrics.
