Challenge
Revenue risk became a high target initiative for the client as its retail strategy was changing from low product mix/high stock to high product mix/low stock
As number of unique items was increasing, so was the need to have on-hand inventory at target levels for captured revenue
Approach
Utilizing Lean and Value Stream applications, the team assessed the current process for target item store stock, developed baseline metrics for high velocity items, utilized statistical modeling to set target stock levels, and linked process capability to revenue risk
The analysis and resulting toolset, including metrics dashboards and velocity tracking, tied the processes and data together from international distribution center arrival through in-store shelving and on to Point of Sale
Results
Increased inventory turns and point of sale revenue, stabilized on-hand inventory, and increased productivity