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"ETC, in conjunction
with Vivacadena, has acheived a uniform, automated way of working."
Milfred Hart | General Manager, ETC |
"The main driver of success for the WE Supply chain was the
Vivacadena Project."
Koen Aben | Vice Director Information Sevices, WE
Europe |
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COMPANY PROFILE | ETC is a large
ICT wholesaler
Dutch subsidary of UK-based Specialist Computer Holding (SCH); second biggest player
in the Netherlands with one EDC, approx. 70 Pan European suppliers and 2500 retail clients.
dual strategy with logistic and warehousing services based on effiency, and
value based full service concept for large enterprise market.
PROBLEM ANALYSIS | ambiguous measurement and reactive inventory management
significant turnover (sales) lost due to unavailability of the right inventory at
the right place.
allocated working capital in wrong/excessive/aged inventory with rapid risk of depreciation
due to short product life cycles.
THE CHALLENGE | increase process effeciency to increase profit
decrease lost sales by improving product availability without inventory increase.
decrease order lead-times.
INTRODUCTION OF VIVACADENA | enables:
improved efficiency of daily operations: higher automation enables professionals
to focus on exceptions only: the system addresses up to 80% of replenishment requirements
without human intervention.
reduction of order lead-times: shift from fixed supply cycles to daily ordering and frequent replenishment, based on actual sales.
improved process discipline: transparent web reports support a consistent and uniform way of working throughout the purchase department.
integrated measurement: introduction of coherent operational, tactical and
strategic KPI's with a focus on lost sales reduction and increased inventory turnover
(monitored per SKU/Location/Day).
RESULTS | 50% reduction of lost sales in the first year, without substitution
less ageing of the inventory and thus decline in depreciation.
positive change of assortment mix with 50% reduction of non-moving articles,
15% increase of fast moving articles.
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COMPANY PROFILE | WE Europe is
a fashion retailer
219 store in six countries in Europe; different store formats (men, women,
kids); different requirements per country; stores differ in size and sales patterns.
PROBLEM ANALYSIS | complexity in the supply chain drives inefficiency.
long planning sysles and high deversification cause imbalance in the supply chain.
despite strong overall planning, sale show both markdowns and high inventory-outs.
THE CHALLENGE | increase profit by creating a better match and quicker response to
customer demand
decrease lead times in the supply chain.
improve product availablity in stores without increasing inventory levels.
use and measure unmistakable KPI's accross all points of contact.
realize responsive supply chain process.
INTRODUCTION OF VIVACADENA | enables:
leverage on the aggregation of inventory: pre-season planning dominates the supply
chain for suppliers to European Distribution Centers (push); actual sales at store level
drives replenishment demand from the stores to the EDC (pull).
lead-time reduction: daily ordering and frequent replenishment rather than
(two) fixed supply times.
integrated measurements: introduction of uniform operational KPI's with a focus on
lost sales reduction and increased inventory turnover (monitored per SKU/Location/Day).
eliminate oscillation: retreive transaction information directly from the store's
cash register to drive true, instead of estimated demand.
improve efficiency of daily operations: professionals can focus on exceptions since
the system deals with 80% replenishment requirements automatically.
RESULTS | substantial improvements directly related to responsive supply chain,
with:
revenue increase and considerable reduction of lost sales.
increased inventory turnover.
higher margins due to significant decrease markdowns.
complete roll out to all stores and formats.
new pilot for responsive supply chain with suppliers to EDC.
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