Challenge:
Our client, a large retailer, faced significant challenges in optimizing inventory deployment across stores and e-commerce channels. Excessive early inventory shipments to stores left the Distribution Center (DC) understocked for timely online order fulfillment. This imbalance strained operational resources in both the DC and stores, leading to costly, inefficient fulfillment processes, longer delivery lead times for online customers, and lower overall customer satisfaction.

Solution:
MontWave identified the primary factors causing inaccuracies in e-commerce demand forecasting during peak periods. By refining seasonal measures and promotional forecasting for e-commerce, we optimized inventory allocation, ensuring adequate reserves were held for online sales.

Additionally, we collaborated with e-commerce planners to proactively incorporate the impact of marketing initiatives into inventory allocation, accommodating spikes in sales from such activities.

Results:

·   50% reduction in number of units and orders picked from stores for online orders, significantly reducing repetitive work in stores and enabling faster, more efficient fulfillment directly from the DC.

·   50% reduction in online order delivery lead time, resulting in exceptional customer satisfaction and positive feedback from online customers.

·   Reduced pressure on store and DC employees during peak seasons, improving their overall work experience and productivity.

Challenge:
The client’s ERP system struggled to forecast demand accurately in a fast-paced retail environment, often resulting in lost sales, overstock in certain locations, and understock in others.

These inconsistencies undermined confidence in the system, leading multiple teams to make manual adjustments and allocate inventory using non-automated processes.

Solution:
MontWave collaborated closely with the client’s internal IT department and the external ERP supplier to identify the root causes of forecast inaccuracy. We developed and implemented new functionalities within the ERP system to improve responsiveness to changing demand trends.

Enhancements included refining seasonal demand factors across channels, differentiating for store and e-commerce needs, and strengthening forecasting accuracy for optimized inventory allocation.

Results:

·   Improved forecast accuracy by at least 40%, enabling more reliable inventory planning and decision-making.

·   Reduced lost sales by more precisely anticipating demand, ensuring the right stock was available at the right locations.

·   Decreased manual interventions by unifying efforts within a dedicated inventory allocation team, enhancing process efficiency.

·   Optimized inventory transfer processes to effectively balance overstock and understock, reducing excess inventory and stockouts.

Challenge:
Our client, a large retailer with complex operational processes, faced significant challenges in integrating a new ERP system. They struggled to understand the system’s functionalities, which prevented them from using it to its full potential.

This led to a lack of confidence within the company regarding the system’s ability to support accurate forecasting.

Solution:
MontWave collaborated with stakeholders across IT, operations, and merchandising to demystify the ERP system, training decision-makers across departments to understand its capabilities, use it efficiently, and enhance its performance by providing informed feedback. A central part of our approach was building an in-house analytics team trained to operate and adapt the ERP system independently. By establishing a solid foundation in data analytics and ERP functionality, the team gained the skills needed to conduct ongoing analysis, make ERP adjustments, and optimize processes autonomously.

Results:

· Successful ERP integration completed within two years, fully customized to client needs.

·   A new in-house analytics team equipped to manage and optimize ERP functionalities independently, ensuring sustainable system use and continuous improvement.

·   Enhanced employee confidence and cross-departmental skills, resulting in smoother ERP adoption and fostering a proactive, data-driven approach to operational decision-making.