SPAIN: Loewe cuts time from design to shelf

7 October 2009 | News | Source: just-style.com

Spanish luxury leather goods and accessories brand Loewe has trimmed time to market and stock-outs as part of a project to make its supply chain a source of competitive advantage.
 
Established in 1846 and part of the LVMH Group, Loewe is a key player in 35 countries, with over 150 stores.

The move to an end-to-end solution for the management of collections is part of its “Excellence in Operations” project.

One of its key challenges was to tackle shorter product lifecycles and complex retail models by investing in new PLM (Product Lifecycle Management) and SCM (Supply Chain Management) solutions.

Working with the TXTPerform suite from TXT e-solutions, Loewe has addressed the collection lifecycle from end-to-end.

It has gone beyond collection planning and development (PLM) to include SCM aspects such as production planning, allocation and replenishment at stores.

Results obtained in the PLM area are said to include improved forecast accuracy and allocation of products to the stores, as well as reduced out-of-stocks by 50%, and time to market by 10%.

“With PLM, we now have a collaborative product development environment, giving the 25-30 users the ability to easily share product and cost information both internally and externally,” says Marcelo Baltzer, director of systems and logistics at Loewe.

“This has had positive effects on the quality and speed of product development.

“Other aspects of the project, specifically allocation, have helped us improve our service levels: time to market and replenishment to stores have both been improved, in turn reducing out-of-stock situations.

“The last process implemented has been the planning of production and raw materials procurements, which will allow us to further enhance delivery plans and service levels.”

“The next steps,” adds project manager Jose Luis Fernandez, “will include the re-design of the logistics network as well as the distribution planning of raw materials and finished products all along the supply chain.”