PROJECT 1 - LEADING nation-wide luxury house-hold retail organization
ISSUE: The client experienced a very long lead time between product design and merchandise availability at retail stores. Lack of store inventory storage space, coupled with SKU proliferation had impacted store sales, product displays and ultimately customer gratification.
SOLUTION: Optimized merchandise sourcing, from 15 Asian counties, and inventory replenishment flow to a network of over 500 nation-wide outlets. Modified demand flow from push to pull and reduced production cycle to store front replenishment time by 65 days. Redesigned delivery network to an ECR (Efficient Consumer Response) model and developed KPIs for measurement of the transformation.
IMPACT: Increased in-store replenishment frequency from once every two weeks to three times per week. The redesign yielded annualized savings of $1.7M in inventory, $5M in real estate footprint elimination and $3.9M in increased revenues due to merchandise availability. The network redesign increased customer satisfaction by reducing shopping cart / store abandonment by 8%.
project 2 - leading purveyor of domestic and international wine e-commerce organization
ISSUE: Customer dissatisfaction due to long order fulfillment lead times and unspecified product arrival times led to decline in YOY sales and excessive product returns.
SOLUTION: Analyzed order flow and process mapped the “promise to customer” metrics coupled with inventory availability and SKU dispersion. Redesigned inventory visibility and delivery promise parameters to meet and exceed customer expectations, leading to near-elimination of product returns. Developed a nation-wide 1-2 day delivery service standard while deploying cost optimization tools for parcel delivery.
IMPACT: Reduced product return rates by 70%, increased up-sale opportunities for sales team and minimized product damage (exposure to adverse climate) by 32%.