Demand Forecasting, Automated Size Curves, Supply Chain and Merchandise Financial Planning
Bata’s South American region, which includes over 5000 stores and 12,000 SKUs, found themselves making heavy use of size scales and facing lengthy lead times on their stock.
They needed a sophisticated and scalable Forecasting, Allocation and Replenishment solution which could be used by multiple teams across three countries.
For this implementation, Bata preferred a solution deployed in an external cloud managed entirely by their vendor of choice.
Bata required a solution that would enable more strategic and effective allocation push. They also needed to be able to automatically do constrained supply allocation when the dependent demand from the stores is more than the Distribution Center has on-hand.
To address Bata’s needs, Veltio implemented Demand Forecasting, Automated Size Curves, Supply Chain and Merchandise Financial Planning in the Latin American region.
Veltio was operating as both the system integrator and space provider in this cloud deployment.
Veltio’s Supply Chain managed logistic constraints in the Warehouse as well as Store logistic restraints minimizing inventory holding costs and store transfers. Demand Forecasting and Automated Size Curves managed Store Size Scaling at Product/Location level.
The planning horizon was extended to 28 weeks from the normal 16-week horizon in order to account for lengthy lead time. This ensured the timely and consistent inflow of new and basic/continuous products.
It improved buyers’ ability to take advantage of valuable selling opportunities and supported buyer effort to clear old inventory, reducing the total number of markdowns. In turn, sales and margin were increased by Mark Down reduction.