It is always a challenge for organizations to address new business needs and opportunities in the midst of a significant upgrade to their technology platform. T4G worked with Orvis to develop a strategy to optimize their inventory management tools before a migration off their existing technology platform. T4G delivered analytical and reporting solutions that supported the immediate business needs, designed so they would continue to be used following Orvis migration to their new platform.

Orvis

The Orvis Company (www.orvis.com), is the world's most recognized name for quality fishing gear and one of the oldest mail order companies in the U.S. Orvis has revenue of over $250m, with 44 retail stores in the U.S. and U.K., and more than 500 dealers worldwide.

Background

Success in the retail industry requires careful planning to ensure investments in inventory and cost containment are carefully managed. In this context, T4G was retained by Orvis to provide recommendations regarding process, organizational and technology changes directed at improving full lifecycle inventory management. Specifically, Orvis wanted to improve inventory turns, grow top-line sales, increase gross margin rates and maintain appropriate service levels.

The IT infrastructure at Orvis is largely AS/400 based with home-grown applications developed and supported in-house. This platform is running the core day-to-day business processing. A longer term goal for Orvis is the replacement of the AS/400. However, the lack of visibility to merchandising information was an immediate issue that could be addressed without the extensive capital requirements and risk to the business that deploying a new ERP would entail.

T4G's Approach

T4G conducted an initial investigation into existing technology and tools that were being used governed by three principles:

During its investigation, T4G found that there was significant frustration and deficiencies at Orvis stemming back to the lack of reporting flexibility of its AS/400 platform. T4G developed a strategy for improving Orvis Merchandise analytical systems to improve inventory turns and sales margins and made additional recommendations regarding planning, forecasting, allocation, and replenishment systems. T4G also identified specific tactical merchandise management activity that was not being supported appropriately by the AS/400.

The Solution

T4G formulated a plan (adopted by Orvis) to provide tools that would immediately improve Merchandising Information delivery and management. These tools complemented the AS/400 and would provide consistent, accurate and timely merchandising information to the business. T4G also provided recommendations regarding item master maintenance and planning software.

T4G then designed and developed a repository of accurate merchandising data: i.e. complete product, channel and time structures, with a full set of metrics that were easily accessible by the organization anytime. Robust reporting and analytical tools were then layered onto this platform. The application was fed by the AS/400 systems. An ROI model was developed for key merchants. This model established inventory management goals for merchants and enabled Orvis to estimate the benefits if these targets were achieved.

Tools/utilities were also developed to address the tactical merchandise management needs. Examples of tactical tools and utilities that T4G has delivered to its retail customers include Stock Balancing, Open To Buy, and Size Profiling.

The Benefits

The tools implemented by T4G provided Orvis with visibility of performance and plans at all levels of the merchandise and channel hierarchies. The solution was designed so that all of the investment would survive the eventual replacement of the AS/400. The project cycle was relatively short, providing users with benefits less than six months after initiation.

During the engagement, T4G also provided education and enrichment training to Orvis' IT staff. This enabled Orvis to be more effective and self-sufficient after the engagement was finished.

Back to Case Studies