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Forecasting, speedy restocking of items makes lost sales rare for Strandbags
The Strandbags Group is one of Australia’s largest specialty retailers with more
than 350 stores throughout Australia, New Zealand, the Middle East and South Africa.
Items sold include leather and synthetic handbags, small leather goods such as men’s
and ladies’ wallets, travel goods, brief cases and backpacks. Strandbags also owns
the “Equip” chain of stores retailing fashion jewelry and accessories.
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- Strandbags displays thousands of products and styles to satisfy choosy consumers,
but its planners lacked store-by-store buying pattern data and other tools to ensure
accurate, prompt stock replenishment
- The company was blanket-stocking stores using minimum/maximum techniques but quantities
were based mostly on the planning team’s speculation about future store performance
- The company was relying upon memory to send stock by certain dates to certain locations
so items could arrive in time for a promotion or take advantage of a holiday sales
period
- Optimize sales potential of selected items in stores most likely to sell them
- Improve efficiencies by proactively stocking faster-selling items and reactively
replenishing slower moving items
- Guarantee outlets a lead-day system for promotional or seasonal selling opportunities
- Ensure in-store display quantities and safety stock are at optimum levels
- Using JustEnough, each item’s stocked stores are ranked so that limited items are
always sent to stores most likely to sell them. Sales potential is optimized for
each item based on actual store sales history.
- Strandbags now taps class hierarchy profiles providing per-store sales trends for
each new fashion item. With seasonal and other promotions, the forecasting tool
ensures stocks are always in line with expectations.
- Forecasting now accumulates stock in selected stores weeks before a promotion starts
and in-store display quantities are optimized to aid shoppers.
- Faster-selling SKUs are proactively restocked and slower moving items are reactively
replenished.
- From the store’s perspective, on-site retail managers are confident about building
sales because when they see a particular item is selling briskly, they know it will
be replenished quickly
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