In the fashion industry, the logistics chain is faced with two opposing issues: a long supply cycle and a sales cycle that requires responsiveness. Optimising the purchasing/manufacturing plan becomes a necessity to control fill rate, stock and manufacturing costs.
Optimate Supply – 15% of products generate 50% of turnover
Buying exactly the amount that is forecast in sales guarantees the company to finish the season with a poor quality of stock and with no possibility of meeting customer demand on products with higher added value. Optimate’s aim is to provide the most efficient purchasing/manufacturing plan possible, taking into account the company’s strategy and objectives in terms of fill rate and stock, as well as each product’s potential.
Optimate’s Supply module can be used to consolidate and transform sales forecasts made in Optimate Forcol and Optimate Retail into an optimal purchasing plan, taking into account your supply, and supplier, constraints.
Optimate Supply produces a purchasing plan suited to your supply strategy with timings structured by week. Its ultimate aim is to maximise your fill rate and reduce residual stock.
With Optimate Supply, our client brands have seen an increase in margin of up to 2 percentage points due to:
- a 25-50% decrease in unfulfilled demand and residual stock,
- an increase in quality of end-of-season residual stock thanks to a better distribution of sizes.
Optimate Supply key features
- Consideration of supplier constraints: closing dates, minimum orders and materials, suppliers’ production capacities, ongoing Purchase Orders and Manufacturing Orders, grouping of products made of the same material, etc.
- Interactive simulation of purchasing plan with 3 strategic parameters: final quality of service, estimation of final stock and estimation of gross margin
- Optimised timing of purchase orders
- Identification of high-performance products to prioritise them against products that generate stock
- Estimation of residual stock and replenishment optimisation (simulation of replenishment scenarios)
- Reserve stock management for permanent products (service stock)
- Calculation of a style/colour’s expected life cycle by analysing the sales history of one or more similar product references
- Identification of products not performing as expected, requiring sales action to be taken
- For retail: shop constraints are taken into account (facing, introduction period, quantity to be introduced, etc.)
Based on an optimised purchasing plan, supply to the point of sale network should subsequently be optimised and replenishment should be managed.