Challenge: This retail company's warehouse stock was rising as stores shifted risk further up the supply chain. The retailer needed to reduce inventory levels and production lead times to better respond to rapidly shifting consumer demand.
Solution: The retailer turned to Logility Voyager Solutions™ to engage in collaborative planning with suppliers. By gaining visibility and leveraging postponement strategies, the retailer can now adjust production orders to meet shifting customer demand and reduce lead times.
Results: As a result, the retailer was able to reduce warehouse stock by 36 percent, achieve 95-percent stock availability on core sizes, increase gross margins by 6.9 percent, and turn its 12-week lead times to just three weeks. The flexibility gained significantly reduced risk by allowing the retailer to hold less inventory in its warehouses and still support stores’ demand for last-minute fulfillment.
About the Solution Provider: With more than 1,250 customers worldwide, Logility is a leading provider of collaborative supply chain optimization and advanced retail planning solutions that help medium, large and Fortune 500 companies realize substantial bottom-line results in record time.