Customer Need/Problem
A British fashion and home furnishing company had suffered from a crisis of overstock inventory and cash flow deterioration. Their merchandising division was concerned about the loss of sales opportunities due to reoccurring out of stock situations that created overstock requirements and increased cost of warehouse operations. Their irregular pattern of replenishment requests also put the capacity of warehouse and distribution operations under pressure. At the same time, their logistics division wanted to reduce the inventory and better plan replenishment schedules to lower the shipping costs in the supply chain.

Service Solution
OOCL Logistics worked together with the stakeholders of the customer’s divisions to introduce a process to align transparency and cooperation between divisions. Marketing intelligence, inventory and operation planning were shared along with management planning.  OOCL Logistics also created a leaner operation by adjusting focus to the changes in the client’s market demand and volatility, thus maximising sales of popular merchandise and speedy replenishment while reducing inventory by quickly identifying slow-selling merchandise and taking appropriate action.

Customer Benefits
After one year of implementation, OOCL Logistics had succeeded in:

• Reduce logistics cost by 16.7%
• Reduce inventory
• Improved sales with timely replenishment