The apparel industry has unique challenges in terms of an inflexible supply with long lead times and mostly large batch sizes, and equally uncertain demand - low predictability and short life-cycles. This often results in high inventory levels and heavy discounts during season ends. Our client, one of the region’s largest branded apparel companies, faced such challenges. Miebach Consulting was asked to streamline the entire supply chain from fabric sourcing to deployment at stores, to address these issues.
Bottom-up and integrated planning to control width and depth
Develop auto-replenishment process to stores
Improve garmenting handling flexibility and reduce sourcing lead times
More than doubling of inventory turns, from 2.0 to 4.5
Improved full-price sale from 50% to over 70%
Reduced value erosion (discounted sales) from 21% to 12%