Improving Basic Apparel Goods Replenishment – Improving In-Stock Performance Case Study

CLIENT: A multi-billion dollar national specialty apparel chain

The challenge

This national specialty apparel chain was struggling with identifying and managing replenishment for basic SKUs, using an excel spreadsheet. Poor in-stock rates for these items, coupled with plans to open hundreds of additional stores created executive-level urgency to address this situation.

Our approach

PwC Canada’s Retail Consulting Services developed a comprehensive definition of what constituted “replenishable” styles, together with a practical methodology for categorizing, identifying and reporting on these items. They identified the weaknesses of the current replenishment process and the capabilities which would be gained as a result of future changes to the process.

PwC Canada’s Retail Consulting Services quantified the material gaps from best practice, and an ROI analysis was completed to quantify the costs and benefits of the proposed process changes, planned technology changes and organizational investments to support the case for change. Business requirements were defined and supported the selection of an advanced replenishment system.

PwC Canada’s Retail Consulting Services then led the implementation of new replenishment system for basic goods, re-designed Replenishment organizational structure, roles and responsibilities and new business processes to support the new systems and organization, to better manage in stock performance.

The result

The technology, process and organizational changes were all completed on budget and on time. The retailer is on target to capture millions of dollars in increased gross margin dollars through the reduction of out-of-stocks.