Problem

A garment export house of great repute had forayed into Indian retail through a new brand for Kidswear, catering to 3-14-year-old boys and girls. . The brand was keen on increasing the % of full price sell-through to avoid discounting the leftovers and diluting its brand value while it was new in the market.

Solution

We first drew up the base stocks at each of the 17 stores the brand had opened at the level of each category-sub category. The production lead time had a bearing on how much FG inventorystock would be sent to stores and held in the central warehouse.
The client could take advantage of the fact that they had flexibility in their production facilities and running large batch sizes in each design was not a compulsion.

So, initially only the minimum required stock was produced in each category-sub-category-design and sent out to the stores. InventoryGoods was not produced for the entire season unlike other fashion brands where it is a common practice.

The client moved to holding raw materials in the warehouse and ‘producing to consumption’ in the facility based on the real market demand, identified as the products were placed on the shelves.

Outcome

The full price sell-through increased to 86% in the largest selling categories, yielding a very tight control on inventory for the client.