Leading Sports Brand Leverages Supply Chain Analytics, Identifies Potential Savings Worth Around $8 Millions

Mar 26, 2019

The client is a leading international sports brand based out of Germany. They wanted to bring about double-digit improvements in stock out and markdown percentages by leveraging Quantzig’s supply chain analytics solutions and improving their approach to supply chain management.

The Business Challenge

Exponential data growth is a major problem that continues to overwhelm players across various industries. The invention of new and increasingly complex business models has further complicated the business scenario and only those who effectively manage this complexity will clearly gain a winning edge. However, if left unattended, this complexity turns into a barrier to innovation and inhibits the organization’s ability to derive actionable insights from data. To seize the complete potential of such digital business models, businesses will have to develop better data management strategies that leverage insights derived from supply chain analytics.

The data generated from supply networks is no exception in this context. In the current, economic, and geopolitical environment, businesses cannot afford to not know their supply chain processes in detail. This holds true for companies dealing with trend-driven products and services, where in addition to the supply chain hitches, they are constantly exposed to dynamic fluctuations in market trends and customer demands. In such situations, changes in supply chain processes and economic environment often lead to unforeseen supply chain interruptions and a shortage of raw materials.

The client, a leading sports brand, faced several supply challenges due to their inability to make sense of the vast pools of data from suppliers and external third party sources.

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Top Challenges Faced by the Client

Problem Statement 1

The client faced predicaments in combining real-time datasets with market insights to identify supply chain risks and opportunities. Identifying supply chain risks was crucial as the inability to do so would hamper their market expansion efforts.

Problem Statement 2

The client found it challenging to gain access to historic datasets related to suppliers, costs, and overall business outcomes. Being able to quickly extract and present this information in the form of intelligible information was challenging as the supply chain data existed in silos in the vast repositories of corporate data.

Problem Statement 3

The third challenge revolved around combining the dynamic demand signals with real-time market insights to make crucial supply chain decisions and to proactively respond to the changing market needs.

Supply chain analytics is the new non-negotiable requirement for all businesses. Connect with our analysts below for detailed information.

Solution Offered and Value Delivered

We followed a three-phased supply chain analytics approach to gain the desired insights for this engagement. The details are as follows:

Phase 1

The initial phase of this supply chain analytics engagement revolved around supply chain risk analysis. In this phase, our supply chain analytics solutions helped the client to gain access to historic supply chain information by region, vendor, and across all product hierarchies. The extracted data was then contextually juxtaposed with external risk and cost factors, this, in turn, empowered the client’s sourcing team to make better supply chain decisions.

Phase 2

The second phase of this supply chain analytics engagement focused on developing an analytics dashboard to precisely monitor and assess the supplier’s performance. The measures that were configured included quality, on-time, and in-full performance metrics. By employing such a robust strategy, the client’s sourcing teams were able to better analyze suppliers’ performance data and were also able to drill down to the root cause of performance inadequacies.

Phase 3

The last phase of this supply chain analytics engagement focused on enhancing supply chain visibility. The solutions offered by our experts did not just stop at picking the best source of supply. Our supply chain analytics experts went a step ahead and helped them to gain access to the demand signals and the corresponding supply market situations.

The creation of a set of sourcing dashboard templates provided detailed insights into the inventory, order status, and market demand in addition to supply chain processes. Equipped with in-depth supply chain insights, the client was better positioned to preempt supply chain disruption and overstock and understock situations. The offered supply chain analytics solutions also helped identify potential savings opportunities in the supply network footprint. In addition, the optimization of supply and distribution channels helped the client to improve the flexibility of the supply chain and reduce distribution costs by about $8m.

What is Supply Chain Analytics?

Supply chain analytics is a data-driven approach that aims at improving the operational efficiency of businesses by improving their ability to make strategic business decisions. It encompasses the complete value chain including manufacturing, sourcing, and logistic. Our supply chain analytics solutions help drive revenue by helping companies to enhance revenue and better manage the working capital in order to enhance the control points across the supply network.

Why Quantzig?

Supply chain analytics is the need of the hour in today’s’ complex business scenario. Though retail industry players have been adopting new ways to implement analytics and improve supply chain efficiency. Not many have been successful in adopting and implementing a process that leverages analytics to draw insights from supply chain data.  We at Quantzig, can help you make the best possible use of supply chain analytics that’ll leave your competitors in the dust.

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