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Home Improvement Retailer: Supply Chain Metrics
Industry: Retail
Challenge
- Revenue risk became a high target initiative for the client as its retail strategy was changing from low product mix/high stock to high product mix/low stock
- As number of unique items was increasing, so was the need to have on-hand inventory at target levels for captured revenue
Approach
- Utilizing Lean and Value Stream applications, the team assessed the current process for target item store stock, developed baseline metrics for high velocity items, utilized statistical modeling to set target stock levels, and linked process capability to revenue risk
- The analysis and resulting toolset, including metrics dashboards and velocity tracking, tied the processes and data together from international distribution center arrival through in-store shelving and on to Point of Sale
Results
- Increased inventory turns and point of sale revenue, stabilized on-hand inventory, and increased productivity
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