New Look optimises inventory fulfilment

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Fashion retailer New Look has just gone live with an inventory optimisation implementation designed in the first phase to streamline the replenishment of stock to its 600 stores.

The High Street fashion retailer has invested in the new software to bolt onto its existing Oracle retail merchandising system and increase stock availability in-store, while reducing the amount of inventory held, for better profit management.

New Look's new 'Q' system from supply chain systems provider Quantum Retail Technology uses various performance data feeds about supply and demand in the fashion retailer's high product turnover business to more accurately help the business match stock to demand.

"We recognised that Quantum Retail's demand forecast model offered us an opportunity for our customers to further influence our decision-making," said Adrian Thompson, New Look Director of IT.

"It's innovative science allowed us to continue to support our fast fashion model with speedy and accurate decisions based on our latest sales and stock figures."

Thompson added that the business case for the Q system would help address stock imbalances, reduced numbers of markdowns and improved service levels.

"Put simply, Quantum Retail is able to more accurately reflect where our customers would like the product and at what level. It effectively bridges the gap between planning and execution," he said.

"Its simple user interface means Q can be used by our allocators, rather than having to rely on experienced forecasters and mathematicians."

The company is heralding this first stage in its implementation of Q a success due to an exhaustive proof of concept and quick implementation time. After an initial monitoring period, service levels showed an increase in availability alongside a reduction in total inventory when compared to a control group.

"Quantum is now live with no adverse impact to either IT or the business and is already giving us confidence that the business case will be delivered successfully," Thompson said.

The retailer will also use Q's advanced forecasting and order planning module to gain greater visibility of long-range inventory requirements and future planned phases include multichannel lifecycle management, initial allocation and reorder planning.

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