Wayfair Trade Program
If successful Supply Chain Planning
PROJECTS AND GOALS
In 2012, the company’s online retail Wayfair grew rapidly and took a new direction, to the point where Alex Goldman, Senior Director of the Planning Department, noted that the planning system is running out of date for the young company. Generation of charging orders and creating estimates involve the commitment of 100 hours per week with three planners who formed his team. Should work with the increasing number of references, each with its characteristics, the season the pattern term supply and demand.
Formerly known as CSN, Wayfair used to work with more than 200 pages of a very particular website offers a unique product category page, of the speaker, stands for the stroller. Although the company is growing very quickly, it has no cross-selling opportunities are precious, so decided to make the consolidation under a single brand Wayfair.
Tools for planning needs, change in direction means a new challenge. Instead of doing the direct delivery of their goods as before, now he’s working with the fast changing stock. With the aim of providing support to this new situation, Wayfair added two new distribution centers, each with its product portfolio.
“The complexity is increasing, both upstream and downstream. On the one hand, every time we have more references, many of which remain long tail or uneven demand patterns; on the contrary, we started selling through partners more retail such as Walmart and Amazon, each with its request flow. Our team was overwhelmed by the number of exceptions and annulments in the forecast. So we realize that it is time to review our planning system, “according to Goldman.
DAY TO DAY
After evaluating several options, including their planning system, Wayfair decided by SO99 + ToolsGroup software. The main reason is the track record of ToolsGroup when working with large volume, high volatility, and long tail reference system. Also, visual interface simplified ToolsGroup interested Wayfair streamlined and commissioned for the Planner.
Implementation has been completed in just four months. Currently, SO99 + manage to forecast nearly one million references and planning of charging for 40,000 ships directly from the distribution center.
RESULTS AND BENEFITS
ToolsGroup’s ability to manage the volatility of demand to Wayfair, including reference to the long tail, has dramatically improved the accuracy of plans to:
- Reduce 50% estimates errors
- Reduce the useless or obsolete inventory by 50%
- Increase inventory turnover by 25%
- Wayfair this significant improvement achieved by reducing the time planning of 100 hours per week for 15, allowing his team to devote a chance to adding value to other aspects of the business.
- Kate Frater, senior director of inventory planning Wayfair, explains: “before my staff does, ToolsGroup significant efforts to receive a small compensation. Now the situation has reversed. The main reason time ToolsGroup freed us is that we now trust the results, which means we can spend more time looking for the exception right about the references, rather than questioning everything. “