Client Background

Client: A global footwear and apparel manufacturer & retailer

Headquarters: Oregon, US

Industry Type: Retail

Products/ Services: Footwear, apparel, sports equipment & accessories

Challenges: 

A global apparel and footwear retailer had built its business in 50 countries with a complex inventory model whereby one distribution center is the central repository between the supplier and customer-facing outlets. To accommodate its growth projections and the launch of new products, the retailer sought to modernize its global network and optimize inventory levels across bill of materials and finished goods. This strategic project would enable the retailer to improve its time to market and provide intelligence about its organization-wide inventory.

Solution

Using a design-led framework, Wipro worked with the retailer to evaluate its supply-chain processes and identify pain points. The recommended solution used SAP IBP, with proof-of-concepts that included multiple business scenarios to determine optimal inventory stocking levels by SKU, location, and time period in a multi-echelon inventory model. Using an intelligent solution to determine inventory holding costs, the retailer conducted real-time simulations for all identified scenarios, complete with “what-if” capabilities to simulate multiple inventory situations.

The native dashboards, heatmaps, and simulations in SAP IBP also promoted faster decision-making, while Wipro’s ValuMap framework measured the business value achieved through the transformation lifecycle. Wipro also automated multiple processes to improve the retailer’s focus on the products and customers of highest value.

Business Impact

Using the new system, the global retailer increased its visibility into inventory costs and service level optimization across the supply chain. The system also empowered the retailer to handle sudden surges in demand, while multi-echelon inventory model helped inform inventory planners about when to stock, where to stock, and how much to stock. The impact of this transformation was clear: enterprise-wide inventory levels were reduced, and the retailer’s time to market improved by 25%.