Lingerie has extremely complex bra sizing. This complexity requires a well automated replenishment solution. That’s also true for Triumph. After Triumph moved to SAP in Japan, they looked for a good solution to automate and optimise their replenishment process. A pilot with Smart Supply in Denmark immediately showed a 17% rise in revenues. After this inventory optimisation software was tested in the highest scoring countries for replenishment Triumph was convinced. Chainbalance could roll out its solution globally over 2,000 stores in 23 countries.
Highlights
About Triumph
- Founded in 1886 as a corset manufacturer
- Triumph is now a fully owned subsidiary of the Triumph enterprise headquartered in Switzerland. The company is a leading manufacturer of lingerie and underwear, swimwear and sleepwear, sold under the Triumph and sloggi brands.
- They currently operate in 120 countries worldwide
Challenge of Triumph
Triumph was looking for a good replenishment system that would communicate with their SAP wholesale system and would deliver a maximum return on turnover.
Implementation of Smart Supply
- The pilot in Denmark achieved a 17% rise in revenues
- Implementing Smart Supply resulted in an increase in turnover rate from 3.9 to 4.7 in the best scoring country of Hungary
- Faster replenishment of sold inventory in the stores
- Better allocation of the entire assortment
- Global rollout to 2,000 stores in 23 countries
Replenishment in SAP retail did not deliver desired results
Triumph moved to SAP in Japan. The aim was to implement an efficient replenishment solution at the same time. The logical choice was via SAP retail. However, this module did not deliver the desired results. That led Triumph to Chainbalance and to a pilot that would test out what Smart Supply could achieve for the lingerie giant.
“For years Hungary has scored the highest in the optimal replenishment of the Hungarian stores. The results in Denmark were very good, but we were curious wat revenue improvement the software could achieve, before we continued the rollout.”
Pilot achieved 17% revenue increase in Denmark
The retail implementation of the SAP solution was halted and Smart Supply was connected to the entire wholesale system in pilot country Denmark. Chainbalance achieved this implementation within four months, exactly according to the planning. In no time the algorithm delivered surprising results, proving that the optimum sales potential of the assortment was being achieved. Triumph quickly saw a positive 17% increase in revenues in Denmark after implementing Smart Supply.
Replenishment based on demand
Smart Supply does not at first send all inventory from the distribution center to the stores. After the first allocation the software uses an algorithm to determine the highest sales potential per SKU (Stock Keeping Unit) per location. This strategy creates flexibility in the supply chain that enables Triumph to more quickly replenish stores there there is the highest demand for the product.
Dynamic process based on buying behavior
Smart Supply determines the store inventory for Triumph based on the realised sales, available stock and individual store settings. Every day the software uses an algorithm to calculate the stock target levels of every SKU. Every night orders are created in every Triumph store to realise these levels. Not 1-on-1 replenishment, but dynamic stock management based on the purchasing behavior of the consumer.
Smart Supply out-scored the highest scoring country of Hungary
After a successful pilot period in Denmark, Chainbalance took on the challenge of having the algorithm make calculations for the Hungarian stores. For years Hungary was the leader in replenishment for Triumph. Improvements were made in this country as well. Smart Supply improved the turnover rate from 3.9 to 4.7. This gave the green light for the global rollout.
“Thanks to the flexible strategy of Smart Supply we achieved greater availability of our lingerie in the stores. Sold inventory was replenished more quickly and by doing this we saw a clear improvement in the turnover in our 2,000 stores.”