Success Stories

SUPPLY CHAIN MANAGEMENT

THE CLIENT CHALLENGE:
How could the client optimize its manufacturing production schedule?
The client, a leading high-end, branded manufacturer and retailer was experiencing severe peaks and valleys in its inventory levels. These peaks and valleys did not match the demands of their retail trading partners.
Upon examination, it became evident that there was no information coming from the retail trading partners about consumer demand. Applied Retail Technologies was asked to develop a process to help manage the company's inventory flow and levels of inventory. This involved solutions that addressed both information systems and business process improvements.

ART's SOLUTION:
The solution proposed by Applied Retail Technologies was to develop a method to collect customer level data and to utilize it in a newly created analysis and forecasting procedure. Applied Retail Technologies developed a data flow diagram that detailed the process to transmit consumer data from the retail-trading partner to the client. Using this data flow diagram, a business case was made to each retail-trading partner as to the benefits that would accrue to them if they were to participate in the collection, sharing and utilization of their consumers' data. As a significant number of trading partners joined the program, a database was constructed to store and organize consumer demand at the SKU level by store location. Multiple levels of summary were added to provide analytical information based upon the methods used by the retailers, along with the methods employed by the production group. The result was a direct link between consumer demand and the requirements of detailed production planning.

BENEFITS TO THE CLIENT:
The client obtained visibility to consumer level activity from which they could improve their production planning.
This resulted in more accurate forecasting that in turn, was used to better match their retail trading partner's demands with production timelines.
An additional and unexpected benefit was the ability for the client to take a more proactive stance in maximizing inventory efficiency in each of the retail trading partner's locations. The net result was better service to those retail partners that participated in the program and a reduction in requests from the retailers for markdown allowances from the client.