Oracle announced that O’STIN has deployed Oracle Retail Demand Forecasting, Oracle Retail Planning & Optimization and Veltio APX Supply Chain Planning to create a product replenishment program that proactively anticipates customer demand.
With the Oracle Retail and Veltio integration O’STIN sought to improve the effectiveness of inventory fulfillment across 700 stores throughout Russia to better meet customer demand while protecting profitability.
Veltio, an Oracle Partner Network Platinum Partner, drove the implementation resulting in a more accurate planning process that can anticipate consumer demand.
“Disparate silos of customer information, store and product performance prevent retailers from having accurate inventory forecasts,” said Chris James, Vice President, Oracle Retail. “Without this holistic perspective brands risk significant decreased margins by having to continually discount inventory to make room for new seasonal merchandise.”
Prior to the upgrade, O’STIN merchants personally managed a 90,000 line product matrix that included the store, style and color.
O’STIN management would manually calculate stock levels for each SKU at every store for the previous four weeks, magnifying a scalability problem as the brand operated at the speed of fast fashion.
“The most effective stock level decisions are based on product performance and stock position. The combined Oracle Retail Planning & Optimization complemented by Veltio APX empowers our planning team to better forecast consumer demand and increase their productivity through automation and exception-based reporting. Now we can rely on data science to predict and automate replenishment based on future sales forecasts,” said Prosvirnin Nikolay, Head of Allocation and Replenishment teams, O’STIN.
“By tuning the high-level replenishment parameters, we optimized inventory to hold the right amount of safety stock to meet consumer expectations and manage the end of season inventory,” said Grechin Sergey, Assortment and Planning Director, O’STIN. “In 18 months, we have rolled out the solution to all stores in Russia, Belorussia and Kazakhstan with Veltio.”