Case Study - Operational Efficiency
Right Stock, Right Place, Right Time. Achieve the correct balance of Stock vs Sales
The RWA Retail Team evaluated the business need of each of Skechers’ departments, and then put a plan in place to bring them on a journey to meet their business needs.
RWA identified their “need to know” information and separated it from their “nice to know” information. Like many businesses, Skechers needed better decision making information and the ability to understand exactly what happened, when, why and most importantly, what to do about it!
With this input from Skechers, RWA developed a suite of trading reports which provoke action, rather than reaction. RWA tailored the reports to Skechers’ needs so that they can easily identify urgent tasks at a glance. The reports also allow Skechers to drill down to the detail when needed.
"Store Reporting is now at the same level as company reporting, so all staff are focused on achieving the same KPI’s. Time and effort was also saved by automated reporting." Declan Hegarty - Senior Buyer
The next key area to tackle was replenishment. As Skechers opened new stores (4 in thespace of 12 months) it was very important tostreamline the replenishment process.With the help and data analysis at RWA,Skechers now have a simple and clearmethod of replenishing stock more accurately. The flexibility of all the different filters & parameters allow Skechers to create a schedule of tailored replenishments for their stores & products. This means the work flow for both stores & warehouse can be managed evenly across the week whilst still maintaining product availability.
"The replenishment module saved us time and effort and showed us that some sizes that we expected as being marginal were actually selling at a quicker rate than expected." Declan Hegarty - Senior Buyer
RWA’s stock transfer module combined with some best practices makes Skechers stock work harder. This increases full price sell through and improves customer satisfaction.
"The transfer module helped us get cleaner and meaner with the product we had on hand - rather than re-order we moved and consolidated." Declan Hegarty - Senior Buyer
Both the replenishment and transfer modules have allowed Skechers to grow their overall margin as they could maximise the sales potential for each sku based on actual sales history. They now had the tools and visibility to manage Seasonal product more efficiently to maintain their sales in a tougher trading environment due to weather and online competition.
Skechers successfully opened three new stores in 2016, without increasing their head office head count, with more expansion planned for 2017.
"Over all, we saved a lot on time and effort. Without RWA, the additional workload would have required an additional two extra members of staff." Declan Hegarty - Senior Buyer
The Skechers Retail Store franchise has gone from strength to strength in the Irish market over the last six years. There are now
17 stores nationwide. The lifestyle footwear stores
in Ireland carry a broad selection of Skechers product for men, women and kids.
Skechers identified several needs at head office:
- Reporting & Replenishment
- Store Communication
- Tighter Stock
- Grow Sales
- Strategic Planning Skechers chose Real World Analytics (RWA) as their partner to help achieve this.