Significant overstocks resulting in up to 50% higher inventory holding costs in core SKUs.
- Running out of the majority of Rhone’s top selling, core SKUs
- Panic ordering to compensate resulting in overstocks
- Variability in demand with frequent launches of seasonal SKUs and re-vamps of core SKUs
- Valuable color performance data captured
- Long lead times require sophistication beyond Excel
- Easy-to-use interface created a central source of truth for all of Rhone’s sales, forecast, inventory and procurement data
- Intuitive tops down and bottoms-up approach to forecasting enables Rhone to dynamically adjust its forecast and inventory buys
- Sophisticated algorithms smooth out stock-outs from prior seasons for more accuracy
- Rhone can incorporate color performance data into next season’s forecast
- Increased visibility into the core and seasonal SKU performance across colors and styles allowing seamless planning
- Increased forecasting accuracy resulting in reducing stock-outs and overstocks
- Ability to retain color performance data across SKUs and styles based on historical information has increased order accuracy
AT A GLANCE
Hundreds of SKUs
300% year-over-year revenue growth
3 month lead time
Multiple distribution channels
Previously stuck planning inventory in Excel and Google sheets, Rhone now uses Fuse to forecast demand, order inventory, replenish inventory and track purchase orders. With a lack of visibility into sales data, Rhone was having difficulty making sure that core SKUs were properly replenished at all times while simultaneously not overbuying seasonal SKUs. Every year the product team would create new colors and patterns which had slight variations to the prior season, but there was no good way to translate the great data on the performance of different colors to new products launching going forward. Fuse provides a way to seamlessly leverage input from the performance of last year’s styles and colors to make a better forecast for this year..
Rhone’s sales have grown 300% this past year, and Fuse has continued to seamlessly support the business as the company has expanded its core products and its line of seasonal SKUs. As the volume of data grows, Fuse’s algorithms continue to improve, providing Rhone with an increasingly more accurate forecast to reduce stockouts and overstocks.