DSW deploys CCi Allocation Optimization Solution
Columbus Consulting Inc (CCi) announced that its Allocation Optimization solution has helped DSW Inc, increase the accuracy of its allocation process and improve the distribution of inventory on a product and store level.
Prior to embarking on the Allocation Optimization project with CCi, the inventory levels at DSW stores were not optimized – some stores had too much inventory and others had too little on a product by product basis. DSW has the JDA Advanced Allocation system, a very robust and flexible application.
However, the flexibility can make taking full advantage of the capabilities a difficult undertaking, yielding sub-optimal results. The system was configured with static algorithms based on historical data that did not incorporate future forecasts and trends.
“We knew the power of the JDA Advanced Allocation System, but we weren't using the full capabilities,” said Linda Canada, vice president of Planning, DSW Inc. “We needed Columbus Consulting's mathematic expertise to develop the complex algorithms that would optimize our allocations to take into account more dynamic variables.”
DSW contracted with Columbus Consulting to implement its Allocation Optimization solution to help improve the accuracy of its allocations. The Allocation Optimization solution has helped DSW take advantage of the advanced capabilities of its allocation system and improve its inventory productivity with allocation results that:
• Are integrated with store plans and forecasts
• Modify allocations based on most recent sales data and revised forecasts
• Consider store space restriction in allocation calculations
“Allocation Optimization provides us dynamic allocation plans that incorporate several key variables and take into account the future view to help us plan and optimize our inventory levels,” added Linda Canada. “Columbus Consulting's experienced team of analysts understood our business and quickly delivered positive results. After implementing Allocation Optimization in just eight weeks, our inventories are now much better synchronized with demand and we are executing more effectively with improved assortments and better optimized inventory levels across our chain.”
“CCi has been very fortunate to work with many leading retailers and DSW is one of those that continues to be successful, even during these tough economic times,” said Rick Amari, president of Columbus Consulting. “We are pleased that the Allocation Optimization solution deployed by the DSW and CCi team helped contribute to DSW results. DSW's successful approach to allocation is a model for how companies can keep an eye on the future while making sure they are optimizing today.”
Columbus Consulting's Allocation Optimization is a rapidly implemented process of improving inventory productivity through better utilization of existing systems. It employs sophisticated mathematical techniques that improve needcalculations derived and implemented with existing allocation systems, resulting in a better distribution of inventory across a retailer's entire chain.
Columbus Consulting Inc