o9 Solutions, Inc. > Case Studies > Revolutionizing Inventory Management in India's Largest Fashion Apparel Company with IoT

Revolutionizing Inventory Management in India's Largest Fashion Apparel Company with IoT

Technology Category

Functional Applications - Inventory Management Systems
Platform as a Service (PaaS) - Application Development Platforms

Applicable Industries

Apparel
Retail

Applicable Functions

Logistics & Transportation
Warehouse & Inventory Management

Use Cases

Demand Planning & Forecasting
Inventory Management

About The Customer

The customer is one of India's largest manufacturing and retail branded-fashion apparel companies. It houses top international fashion brands for men, women, and kids. The company has a significant presence in the Indian market and is known for its diverse range of fashion apparel. However, it was facing challenges in managing its inventory, particularly during the end of the season. The company's manual approach to demand and supply planning was time-consuming and offered low visibility into factory capacity constraints. Furthermore, inaccurate fabric requirements often led to material excesses or shortages.

The Challenge

One of India's largest manufacturing and retail branded-fashion apparel companies was grappling with the challenge of end-of-season excess and unsold inventory. This issue was primarily due to the lack of comprehensive visibility into demand, supply, and inventory at multiple levels. The company's pre-season and in-season demand/supply planning was done manually, which not only consumed a significant amount of time but also offered low visibility of factory capacity constraints. Furthermore, the company frequently had to manage inaccurate fabric requirements, leading to either excesses or shortages of material. These challenges were impacting the company's profitability and sustainability, as unnecessary sourcing, expedites, and inventory reduction were becoming increasingly common.

The Solution

The company partnered with o9 to automate the process of Inventory Planning and Review across all of its brands. With o9's advanced supply planning capabilities, the company was able to perform capacity planning and fabric planning, thereby limiting the occurrences of excess/shortages. Moreover, o9's highly differentiated Machine Learning (ML) forecasting capabilities provided early projected visibility regarding possible occurrences of excess/shortages. The o9 Enterprise Knowledge Graph was used to implement End-to-End Integrated Business Planning (IBP) capabilities, supporting critical demand and supply workflows on a single integrated platform. Additionally, the unique o9 solver capability was used to solve capacity and material constraints and to highlight shortfalls. The company replaced its homegrown solutions and Excel with o9's platform.

Operational Impact

The implementation of o9's solutions brought about a significant transformation in the company's inventory management. The automation of Inventory Planning and Review across all brands increased forecasting accuracy. The company was able to perform capacity planning and fabric planning more efficiently, thereby limiting the occurrences of excess/shortages. The use of o9's ML forecasting capabilities provided early projected visibility into potential excesses or shortages, enabling the company to take proactive measures. The implementation of End-to-End IBP capabilities supported critical demand and supply workflows on a single integrated platform, enhancing the overall operational efficiency. The unique o9 solver capability helped solve capacity and material constraints, highlighting shortfalls and enabling timely corrective actions.

Quantitative Benefit