The company is one of leading International names in the Large format departmental stores in India. They are are present across all major metros in India and are rapidly expanding their footprint across the country. Their product Lines include Apparels & Footwear, Kids wear, Home-ware and Furnishings, Beauty and Accessories and a few more.

Business Reality

Anticipating demands of the retail market is highly challenging and more so in the fashion industry where trends change each season. Managing and delivering products to end customers through a complex supply chain of manufacturers, distributors and retail stores involves significant advance planning and logistics coordination. Being agile to changing market needs while maintaining good operational efficiencies are key to successful business growth.

Challenges

Operational

  • Wrong and excess stock levels across the entire chain leading to lower profitability
  • Surplus stocks leading to store discounts to push stocks reducing margins
  • Shortages in better performing stores leading to additional purchasing costs
  • Impact of lost sales due to wrong stocks not considered and acted upon

Strategic

  • Over dependence on accurate sales forecasting causing a disconnect from market reality and adaptability to changing customer needs
  • Push strategy causing high inventory levels and supply chain costs
  • Lack of synchronization across teams leading to a silo approach and away from a performance oriented culture
  • Unstable warehouse processes and systems leading to increased logistics costs and reduced productivity

Results

Quantitatives

  • Dramatic results in a 4 month timeframe
  • Revenue growth ~ 30 % without any additional schemes
  • Reduced WIP/Inventory: ~ 20%
  • On-time deliveries ~ 80-90%
  • Reduced logistics and fire-fighting costs

Qualitatives

  • Enabling all functions across the supply chain to come together to resolve common issues and drive results
  • Helping move towards a result and team oriented culture with the belief that “no one has sold till the customer has bought

Strategic

  • Re-orientation to a “Pull” instead of a “Push” strategy enabled them to become a truly demand driven supply chain company
  • Improved visibility and better decision making process by merchandising based on the quality of information made available
“...Apart from the dramatic benefits that were delivered, there were two larger, long term benefits that I wish to highlight. One was seeing how the right approach brought different functions together as a team to work on common priorities and issues. The other was the visibility of the impact of merchandising policies on lost sales which in this industry is rarely seen and analysed. The project helped us realize a more productive way of working, which if persisted upon, can provide Lifestyle with a strong supply chain advantage...”
COO (West Region)
Aspire Infinite | Large Format Stores