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wehkamp boosts next-day deliveries using Agentrics software
03 Jun '11
5 min read
Agentrics demand driven replenishment software is helping wehkamp.nl's supply chain operations because, Norel says, instead of having to sell goods that are not so popular, there's now more focus on the best selling items: for instance, new high-tech gadgets being promoted by leading manufacturers; or seasonal, popular lines like women's swimwear in the summer.
Given that wehkamp.nl relies on a 'pull' system with many orders coming directly from suppliers' warehouses, it also needs to be sure that the information it exchanges on product availability and delivery times is 100% accurate and up-to-the-minute. In doing so, consumers can be sure of whether products are in-stock. Greater transparency for the retailer and suppliers alike also means less exposure to potential shortfalls and being able to see exactly what stock is required.
“Sharing information on sales and analysing the data helps us make more intuitive decisions, educate our suppliers, and mean we're not buying blind,” adds Norel.
What's more, many products, particularly fashionable or electrical items, have an extremely short product lifecycle, meaning that they're 'in' demand one week and 'out' the next.
For instance, working closely with ETC for the supply of the majority of its computing products, wehkamp.nl found that it was having to provide a forecast of what it wanted for the eight weeks that a laptop would typically sell, but have to buy well ahead without actually knowing what the customer would ultimately want.
Since implementing the Agentrics automated replenishment solution, wehkamp.nl has recorded a 25% reduction in lost sales. The retailer has increased service levels from 75% to 85 %, so that now four out of five orders placed before 10 p.m. at night are delivered to the customer the following day.
The average speed of movement of goods from being sold and replaced (the stock turn rate) is now industry leading, at between 25 and 30 days. This has resulted in significant cost savings, given that cash is not tied up in stock for so long, losing its value over time. The amount of unused or obsolete stock has also been reduced. In a pilot test with its supplier ETC, wehkamp.nl has seen inventory levels drop by thirty to forty percent. Overall, wehkamp.nl is able to stock ten percent less inventory, relying more on its suppliers to ensure meeting delivery requirements on customer orders.
The success of the pilot has encouraged wehkamp.nl to involve more and more of its suppliers in a so called 'collaboratively managed' supply chain environment - where suppliers take on a bigger role in analysing data to drive retail replenishment - with plans to roll-out the software to more of its suppliers this year.
Agentrics is a global provider of retail & supply chain solutions.
Given that wehkamp.nl relies on a 'pull' system with many orders coming directly from suppliers' warehouses, it also needs to be sure that the information it exchanges on product availability and delivery times is 100% accurate and up-to-the-minute. In doing so, consumers can be sure of whether products are in-stock. Greater transparency for the retailer and suppliers alike also means less exposure to potential shortfalls and being able to see exactly what stock is required.
“Sharing information on sales and analysing the data helps us make more intuitive decisions, educate our suppliers, and mean we're not buying blind,” adds Norel.
What's more, many products, particularly fashionable or electrical items, have an extremely short product lifecycle, meaning that they're 'in' demand one week and 'out' the next.
For instance, working closely with ETC for the supply of the majority of its computing products, wehkamp.nl found that it was having to provide a forecast of what it wanted for the eight weeks that a laptop would typically sell, but have to buy well ahead without actually knowing what the customer would ultimately want.
Since implementing the Agentrics automated replenishment solution, wehkamp.nl has recorded a 25% reduction in lost sales. The retailer has increased service levels from 75% to 85 %, so that now four out of five orders placed before 10 p.m. at night are delivered to the customer the following day.
The average speed of movement of goods from being sold and replaced (the stock turn rate) is now industry leading, at between 25 and 30 days. This has resulted in significant cost savings, given that cash is not tied up in stock for so long, losing its value over time. The amount of unused or obsolete stock has also been reduced. In a pilot test with its supplier ETC, wehkamp.nl has seen inventory levels drop by thirty to forty percent. Overall, wehkamp.nl is able to stock ten percent less inventory, relying more on its suppliers to ensure meeting delivery requirements on customer orders.
The success of the pilot has encouraged wehkamp.nl to involve more and more of its suppliers in a so called 'collaboratively managed' supply chain environment - where suppliers take on a bigger role in analysing data to drive retail replenishment - with plans to roll-out the software to more of its suppliers this year.
Agentrics is a global provider of retail & supply chain solutions.
Wehkamp
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