Company fashion sector – stock reduction
Italian fashion house. The company needed to revise its strategic approach to sales and merchandising organization to improve cash flow and increase product offering consistency.
Critical issues
- Discount/outlet sales were too high compared to full price sales with possible damage to brand perception, stocks were too high
- The company was organized with sales branches in the main continents very independent in terms of product selection, direct channel purchases, stock management
Activities and improvements
- Centralize the planning activities (Sales Planning, Open to Buy)
- Create a push-pull process for product distribution
- Build a centralized demand planning function
- Drive process transformation and implementation
Results
- Centralized planning and purchasing function
- Push-pull distribution in place
- Overall reduction of stocks (9%)
- Clustering of sales outlets, optimization of the store assortment in width and depth
- 1,2 million euros saved on shipping costs thanks to distribution optimization
Read more
Prossimi eventi
