As the company’s brands, models, and distribution channels were expanding, the company had the challenge of intelligently managing inventory to maintain high service levels but avoid excess stock.
In addition to managing phenomena like high seasonality and launch profiles they needed to position SKUs differently according to their market behavior.
After a software selection process, the company decided to implement a tool to strategically analyze and optimize stock levels. The company chose Service Optimizer 99+, ToolsGroup’s service-driven inventory optimization solution, to:
We have always guaranteed a high service level to our clients. The goals set for SO99+ were to reduce stock, to improve stock mix and to further increase our service level – were therefore very ambitious.With Service Optimizer 99+ and the support of ToolsGroup we were able to carry out this project and achieve the set goals”.
ToolsGroup’s Service Optimizer 99+ (SO99+) manages all finished products in a distribution network comprising five sites, one central warehouse and 26 distribution centers. With SO99+, the eyewear company is able to maintain excellent customer service levels, while keeping minimum stock and short time-to-market for all its products.
The entire SO99+ solution was implemented in six months and achieved the following benefits:
Following the success of SO99+ in the finished products implementation, the company extended the use of the ToolsGroup solution to its spare parts operation (frame components and lenses). In less than three months from the project kick-off, the service level reached 98.5%, with an 80% reduction in back orders, and no simultaneous increase in inventory levels.
With annual revenues in excess of US $7 Billion, this global eyewear company is the world leader in the design, manufacturing, marketing and distribution of eyeglass frames. The company distributes its own products in 120 countries around the world, directly or indirectly employing more than 24,500 workers.
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