January 23, 2024

Van Dal mannenmode (menswear) reduced their understock with > 90 %

The Challenge

Van Dal used to employ a traditional static push strategy, where all stores received identical stock replenishment. Now, they’ve transitioned to a hyper-personalized approach, optimizing stock levels for each SKU and store based on actual daily customer demand.

The Solution

Van Dal transitioned from a push strategy to a pull strategy by harnessing the power of WAIR’s AI Replenisher. This shift allowed them to fine-tune stock levels based on customer demand, utilizing highly accurate sales forecasts and seamless ERP integration. As a result, they strategically allocate stock, enhance sell-through rates, decrease markdowns, increase turnover, and minimise waste.

The Results

Traditional vs AI Replenisher

Forecast accuracy: 58% vs 95%
Overprediction: 39% vs 4%
Underprediction: 3% vs 0%

An overall improvement of 164%

About van Dal mannenmode (menswear):

Van Dal mannenmode, a Dutch men’s fashion retailer, features 36 stores across the Netherlands and has ambitious growth plans. They offer a complete package for every man by providing clothing styles, shoes, and accessories with various fits and sizes. Since its establishment in 1951, a strong commitment to service and expert advice has been paramount.

In the year 2022 alone, Van Dal introduced a staggering 1,100 new styles of which 650 Private Label, a testament to their dedication to staying on the cutting edge of fashion trends. Boasting a vast array of both casual and business attire, Van Dal Mannenmode offers men the opportunity to explore their unique fashion preferences in an inviting and spacious shopping environment.

The Challenge

On average due to their push strategy, replenishment occurred only for an average of 46 days. Consequently, after these 46 days, adjusting stock levels based on customer demand became impossible. This was primarily because the warehouse had depleted its stock, and some inventory remained trapped in underperforming stores. The push strategy led to an earlier onset of ‘scarcity,’ resulting in certain high-potential sales stores facing unavailability of specific SKUs, while others with lower sales potential experienced overstock issues.

The Solution

WAIR’s AI Replenisher employs SKU-level sales forecasting and directly adjusts target stock levels for the upcoming week within Van Dal’s ERP system, which, in this instance, is ACA XPRT – Microsoft Dynamics 365. This is achieved through the utilization of our proprietary large deep-learning model optimized specifically for Van Dal. This transition enables Van Dal to shift from a “static” push strategy, where stock is pushed into stores, to a “dynamic” pull strategy that relies on specific store and SKU- based customer demand.

This shift offers several advantages. Firstly, it extends the fulfillment of online sales (webshop sales) from the central warehouse (CM) for a more extended period, resulting in an enhanced customer experience and more efficient operations. Secondly, it prevents stock from being erroneously distributed to the wrong stores when replenishment stock becomes depleted, consequently reducing the need for redistribution.

The Results

Van Dal transitioned to a highly efficient process, creating the impression that for each store and SKU, a (digital) merchandiser makes decisions daily.

58,2% to 95,4%

Forecast Accuracy

39% to 4,4%

Overstock

2,8% to 0,2%

Understock

About WAIR

WAIR is an Amsterdam-based startup founded in 2019 with the idea that top-shelf technologies should be accessible to retailers of all sizes. With a team of retail experts and machine learning engineers working side-by-side, WAIR designs solutions that allow businesses to add automated intelligence without breaking processes or platforms and with low investment and high ROI.

We are more than happy to explain more about these calculations and our case studies please feel free to contact us

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