Multinational Apparel Retailer In-Season Inventory Management
234K
Active SKUs
670
Stores
20
DCs in 16 Countries
50+
Marketplaces
50
Countries
About Company
Defacto, a prominent Turkish fashion retailer, offers a wide range of products, including men’s, women’s, and children’s clothing, as well as accessories, footwear, and home textiles. Known for its trendy and affordable fashion, Defacto caters to various styles and preferences, ensuring there’s something for everyone. The company operates in over 50 countries, including key markets in Europe, the Middle East, and North Africa. Defacto’s extensive network includes more than 650 stores worldwide.
Goals
Elimination of human dependency in the initial allocation, replenishment, and store-to-store transfers processes, and provide integrated and autonomous planning
Usage of best picked statistical methods and machine learning / AI algorithms to address store-level differences in customer preferences
Decrease stock-out and lost-sales while increasing the availability through smarter inventory management process
Provide technology to support fast growth with a small allocation team
Challenges
Fast growth fueled by addition of new countries, new store openings, and new warehouses
Disconnected processes requiring larger teams with the growing complexity of the network
Need to accommodate geographical differences in seasonality and product preference across the network
Need to maximize sell-through for short lifecycle fashion products through smart initial allocation and demand-driven replenishment
Benefits
Rapid go-live in less than 4 months
Automation of initial allocation & replenishment processes
Scenario-based store-to-store transfer optimization to rebalance inventory across the network
Scalable platform supporting seamless growth across multiple countries
150M+ weekly recommendations
20% headcount reduction in allocation team
while expanding to 50 countries
95% – user acceptance rate of daily recommendations
20% – headcount reduction in allocation team
Solutions
“With Initial Allocation & Replenishment Planning, we ensure the right products reach the right customers at the right time. The recommendations are executed automatically every day via Solvoyo’s seamless integration into our internal systems. In the last 4 years, we significantly increased our sales and reduced the ending inventory by using Solvoyo’s solutions.”
Yusuf Demir, Senior Allocation & Capacity Manager, DeFacto
Solvoyo delivers state-of-the-art Supply Chain solutions in partnership with Amazon Web Services (AWS) to host our cloud infrastructure and accelerate the digital transformation journey of our customers with seamless scalability. AWS is a secure and reliable cloud services platform offering strong computing power, database storage, and other functionality to enable us to offer cutting-edge technology, and to grow along with our customers.
Don’t take our word for it
Using Solvoyo’s Markdown Optimization solution, we now can achieve different business objectives. With an AI/ML predictive life cycle forecasting engine, Solvoyo prevents us from taking unnecessary discounts and thus, minimizing margin lost.
Solvoyo has been a very effective solution partner in our fast growth and digital transformation journey. Using Solvoyo’s platform for fashion planning solutions, we were able to bring automation to buy planning and size optimization decisions.
We’ve been using Solvoyo’s PLM solution for our pre-season and in-season planning processes. Solvoyo’s cloud-based PLM solution helps us digitize our manual processes and workflows. The integration between our ERP systems and the PLM solution of Solvoyo has been working well for us.
Using Solvoyo Assortment Planning has provided a huge convenience to us as we replaced our manual methods to achieve faster analysis and decision-making. We can easily see the reference products used in generating new purchase orders and review our buying decisions.
The digital transformation of Penti took a big step as we combined our business processes under one roof. As a result of pre-season planning with Solvoyo, we reduced labor costs, balanced the work distribution across our teams, and most importantly improved decision-making based on data-driven recommendations to pursue our higher targets.
