Case Study #2

A major apparel retailer significantly increased their ROI and commodity turnover with our custom inventory management tool based on the Theory of Constraints.

Client
Undisclosed Customer

A major apparel retailer in the US.

Location
United States
Our Role
Ecommerce Consulting,
Web-Development

Challenge

This client experienced a continuous, high-volume number of orders. Unfortunately, the client had issues refilling their inventory in time. Often, popular items would go out of stock quickly, and some less popular items would stay frozen in the warehouse. As a result, thousands and thousands of dollars in inventory were left tied-up and sitting in the warehouse. Also, the more popular items could not be filled or kept in stock efficiently.

Because of the inefficiency in their product lines, our client wanted a better, more accurate way to analyze sales numbers and manage their stock inventory system. They needed a way to refill their stock, and the right kind of stock, promptly, while lowering the amount of unprofitable inventory in the warehouse.

Solution

At DigitalWheat, our team created a custom solution for this client. We implemented the best practices of the Theory of constraints to design an inventory management tool for them. The application was able to accurately analyze their stock inventory, cross-reference it with specific product sales volume, and replenish the stock before it could be depleted.

Results

As a result, the app enabled our client to significantly reduce the amount of money frozen in unpopular inventory stored in the warehouse. Reducing the number of frozen stock provided our client with increased ROI and commodity turnover. The client saved over $100,000 each month, with a 30% profit increase, along with a 200% increased ROI.

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