We evaluate the impact of a supply chain pilot implemented at Hugo Boss. This pilot entailed altering the way in which Hugo Boss orders from its suppliers. We explore the challenge of assessing the impact of supply chain change, the link between operational performance and firm performance, and the relationship between sales, inventory, and product availability.
We evaluate the impact of a supply chain pilot implemented at Hugo Boss. This pilot entailed altering the way in which Hugo Boss orders from its suppliers. We explore the challenge of assessing the impact of supply chain change, the link between operational performance and firm performance, and the relationship between sales, inventory, and product availability.
Geoffrey Ryans, a regional department store, faced two major issues relating to its retail furniture line: a large percentage of stock received from East Asian vendors was not in sellable condition, and furniture pieces had high customer return rates. Discusses different options for the Shipment Quality Group, including the use of vendor scorecards and product quality checks in the furniture division. Before agreeing on any particular course of action, the Shipment Quality Group must also consider the implications of any changes on their East Asian vendor core.
Ever since retailers equipped their cash registers with bar code scanners, we've been promised a brave new world of supply chain management, one free of stockouts and overstocked warehouses. But inaccurate data are sabotaging this vision.
In spite of making substantial investments in information technology planning systems, retailers are struggling with two execution problems--inventory record inaccuracy and misplaced stock keeping units (SKUs)--that are hurting their performance and ability to satisfy customers. At one leading retailer, 65% of inventory records were inaccurate (i.e., recorded inventory levels did not reflect actual inventory levels). Misplaced SKUs at another leading retailer prevented one in six customers who requested help from a sales associate from finding the products that were available in a store. These execution problems reduce profits by more than 10%. Moreover, performance along these two dimensions of execution varies substantially among stores within the same chain that use identical information technology. By examining the systematic differences that exist among stores, this article identifies the drivers of inventory record inaccuracy and misplaced SKUs and recommends steps retailers can take to improve operational execution in their chains.