Managing a huge variety of seasonal collections in the fashion industry

About the Customer 

Aramis Group is a global fashion and lifestyle company that owns several brands, including Aramis, Tommy Hilfiger, and Calvin Klein. The company was founded in 1964 and is headquartered in New York City. The Aramis brand, specifically, is a men’s fragrance line that was launched in 1966 and is known for its classic, sophisticated scents.


Key Challenges

The biggest well-known challenge in the fashion industry is how to manage the huge variety of seasonal collection achieving the lowest level of leftovers without losing opportunity of sales, and also guarantee high level of availability of the permanent items getting all of their potential of sales, out of increase the investment on inventory. With Aramis was not different. Even with another automatic replenishment systems, they were suffering with unbalanced supply chain, high inventory levels, high level of leftovers and also shortages of stores.


Partner Solution

Onebeat is committed to helping retailers, wholesalers, and brands achieve excellent results through operational excellence and innovation. Onebeat has attacked the S&OE environment by replacing the current replenishment system with Onebeat’s Real-Time Learning Algorithm. In comparison, Smart Replenishment Algorithm solved the problem of seasonal products prioritizing the scarce inventory at DC, based on product-store performance and criticality. Also, using the batch of IST and Surplus Algorithms, it’s possible to understand the pull- back and inter-stores-transfer possibilities.

Regarding assortments, the Smart Automatic Allocation system started to allocate new products assuring the right variety per category and per store. This guaranteed the assortments would align with the customer’s expectation and level of freshness.

In order to release the flow, Global and Local No Movers/Slow Movers Algorithms have been implemented driving Aramis to take the right tactical actions. Decisions such as tail rotation, creating liquidations, shrinking the life cycle of products, and many stores’ operational actions became possible with this implementation.

The full management Dashboard operated on top of Amazon Web Services (AWS)  is helping the Aramis team manage, and follow up on all stores’ KPIs and implementation results. 


Results and Benefits

Onebeat implementation started in an assisted mode to get the trust and confidence of the client team, even because another solution was already in place. However, only after 2 weeks, the level of confidence was so good that it was decided to roll out in automatic mode replacing 100% the previous solution. 

After 2 months of using Onebeat’s solution, the inventory level of permanent items had achieved more than 20% of reduction with almost 100% availability.

The summary below details the quantifiable results of implementation 1 year after Go-Live: 

  • Inventory in stores reduced by 20% considering all collections, Inventory Units: 35%
  • Average price increased by 25%
  • Inventory in the permanent items reduced over 30%
  • Markdown reduced by 6%
  • Increase sales in pieces by 12%
  • Inventory turns increased by 60% 

The utilization of sophisticated ML models on AWS cloud necessitated the creation of a centralized location to aggregate all data sets, which in turn enabled Onebeat to store this valuable data on the cloud.

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