Case Study
UST helped a global apparel manufacturer modernize demand planning processes with UST Flex iOM
OUR CLIENT
Founded more than 150 years ago as a dry goods business, this company has evolved to become one of the most iconic apparel brands in the world. With multiple clothing categories and approximately 450 stores around the globe, the company generates well over $5 billion annually.
THE CHALLENGE
Pandemic-related global supply chain issues unearthed antiquated processes
Like so many businesses, our client struggled with global supply chain issues during the Covid-19 pandemic. As company leaders analyzed root-cause issues and potential workarounds to resolve supply and delivery challenges, demand planning line of business leaders realized that time-consuming, outdated, manual supply allocation processes were exacerbating the external pandemic-related supply problems. The company realized it needed to modernize and automate available-to-promise (ATP) processes.
THE TRANSFORMATION
UST Flex iOM automated demand and inventory planning with data-driven processes
UST integrated UST Flex iOM, an SAP-based intelligent order management solution, with the apparel company’s existing SAP supply chain and logistics systems. By augmenting its ATP processes with UST Flex iOM’s sophisticated, data-driven order confirmation methodologies, the company can now utilize:
- Advanced allocation quantity calculations—using configurable algorithms to calculate order and inventory quantities based on the company’s business strategies and other key factors, like aggregated demand forecasts, inventory protection data sets, as well as available and projected supplies.
- User-decision support functionality—thanks to an interactive order and allocation management cockpit that allows users to analyze allocations in real-time and make strategic course corrections to reassign inventory and order confirmations as supply and demand changes.
- Two-step ATP checks—to ensure that inventory allocations adhere to business priorities, margin and revenue targets, profitability goals, and retailer customer expectations and that supply constraints are strategically shared across channels and retailers to increase market penetration and customer trust.
- Accelerated backorder processing—to avoid alienating retailer customers with stock-outs.
THE IMPACT
Modernized ATP processes and streamlined inventory management
Now, the apparel company’s demand planning and sales operations teams have the automated tools they need to understand supply and demand, so they can optimize product allocations to:
- Increase sales, revenue, and profitability
- Reduce markdowns, stock-outs, lost sales, dissatisfied retailer customers, and unhappy consumers
- Accelerate inventory turns
- Improve inventory and working capital management