Lifestyle Brand Needed a Solution to Help Continue Growth Trajectory
How a footwear, jewelry and leather goods retailer turned profitability around
“Do the math and it’s clear that the data Softvision’s Forecasting provides is worth far more than its cost of ownership. That’s why I recommend it so highly.” – Planning and Merchandising Leader
This lifestyle brand broke into the premium sneaker market and expanded into other leather goods as well. Continuing on that expansion, they eventually opened multiple retail locations.
As the brands success grew, so did its out-of-stocks, backorders and missed opportunities. The results showed in the lack of communication within critical areas of the organization – and in the company’s shrinking bottom line. With the implementation of our solution and support the brand was able to make dramatic improvements in its operations, its decision-making and its profitability.
Growing from just a few items to an inventory that averaged 5000 products and 25,000 SKUs, the client’s planners relied on a mix of paper documents, spreadsheets, mainframe-based ordering and fulfillment tools, and their own memories to try to keep inventories at proper levels. As the business grew, the inadequacies of these disparate tools and methods fell further short of the mark and it showed – in the high incidence of errors, increasing out-of-stock items and overstocks and ultimately in the bottom line.
To make matters worse, there was too little information available to planners and too little communication with marketing.
With the single, comprehensive inventory management solutions, planners found that critical information was readily accessible, allowing them to publish cleaner, more reliable forecasts. For the first time, the company could base sales projections on up-to-date, detailed, actual results, instead of outdated averages. This allowed buyers to cut back on purchases, while feeling confident of satisfying demand. As one of their leaders acknowledged, “The bottom line is that better information makes for better decisions, which makes for better results.”.
In addition to our software, Softvision was able to provide the additional support necessary to the client, including integration with its mainframe-based data infrastructure, training for users and system administrators and analysis of their inventory practices.
With the single, comprehensive inventory management solutions, planners found that critical information was readily accessible, allowing them to publish
The improvements the client was able to achieve with our solution have been dramatic. Within six months inventory turns doubled from 1.2 to 2.5. Initial fill rates increased and backorders were reduced by more than 60% — even though sales increased. At the same time, the team boosted efficiency, keeping pace with an 18% increase in sales and a 25% increase in the number of SKUs in inventory, without adding people.
“The implementation, has truly helped our team to achieve significant improvements in our inventory management results, changes that would have been very difficult to accomplish without the data analysis tools that it provides”.