CASE STUDY SS-AF-SC-01 | Supply Chain Transformation
Apparel Leader Supply Chain Transformation
Aligning Inventory, Sales, and Operations for $600M+ Growth
97%
On-Time In-Full (OTIF) Delivery
<2%
Profit Dilution (Down from 12%)
<3%
Warehousing Cost as % of Sales
Challenge
Complex Operations Straining Efficiency and Profitability
- Inventory Mismatch: Only 72% coverage of open sales led to frequent stockouts or overstock.
- Profit Erosion: Dilution from late deliveries and fulfillment issues at 12%, reducing margins.
- Operational Chaos: Excessive overtime and high warehousing costs indicated inefficiency.
- Misaligned Departments: Sales, inventory, and operations worked on disconnected forecasts.
- Data-Rich, Insight-Poor: Metrics were available but not actionable, preventing proactive decision-making.
Solution
Digital SIOP and Real-Time Dashboards Enabled Proactive, Aligned Operations
- SIOP Implementation: Instituted Sales, Inventory, and Operations Planning process.
- Digital Dashboard: Integrated real-time data across departments for unified visibility.
- Forecast Alignment: Linked sales predictions directly to inventory planning and production schedules.
- Cultural Shift: Promoted proactive, data-driven decision-making across the organization.
- Operational Standardization: Reduced reliance on overtime and reactive problem-solving.
Results
Customer Satisfaction, Profitability, and Efficiency Transformed
- OTIF Delivery 97%: On-time, in-full shipments greatly improved customer satisfaction.
- Dilution Reduced: Profit erosion dropped from 12% to less than 2%, preserving millions.
- Warehousing Cost Cut: Reduced to below 3% of sales while maintaining service levels.
- Operational Excellence: Streamlined processes eliminated excessive overtime.
- Competitive Advantage: Fully aligned, data-driven supply chain supports scalable growth.