4×4 Segmentation
Problem Statement
Transform Footwear retailer’s Supply and Inventory Planning Backbone based on a responsive, flexible and segmented Supply Chain to support an Omni-channel Ecosystem
- We use ebp’s own 4x4 classification methods to group products which have similar historical patterns, volume and/or revenue. Classifying a product will help determine the optimal method for distribution, promotion, and pricing.
- We recommend it as a first step in demand planning process as it provides you with a direction and help optimize your approach and focus first on the items that mean most to your portfolio.
- Range Planning: Framework defined for identifying Core and chase candidates alongside trimming long tails.
- Differentiated supply strategy through defined Service Level & Safety Stock
- Omni Inventory Management: Insights into Sales and stock interaction across Channels to enable
- The approach is now being adapted into all stages of GTM from product creation to MEIO. Segmentation used as a foundation for product flow, inventory and deployment management
- Identified potential Core styles to grow the segment from 8.3 mil units, $404 mil, 35 styles to 12.7mil units, $675 mil, 114 styles.