New MFP Solution to Drive Inventory and Margin Visibility for Value Retailer
Client Challenge
The client is a $1.3B national specialty off-price retailer operating several hundred stores, e-commerce, and warehouse locations. In-season planning/open-to-buy and warehouse inventory were handled outside the existing merchandise financial planning (MFP) system in disconnected spreadsheets. Because of these limitations, the retailer did not have a consolidated view of the total company inventory by channel or location. The company wished to design and implement consistent open-to-buy processes within a new MFP solution that incorporated all channels. New roles and responsibilities had been established as part of the preparation for the new MFP solution, but the organization historically had limited success with the adoption of new tools and processes.
Parker Avery Solution
Combining knowledge of the client’s existing processes and organization with retail leading practices, Parker Avery partnered with the client in designing new processes and implementing a new MFP solution that would support desired business capabilities and longer-term objectives.
The overall MFP solution combined process and technology with the new roles and responsibilities to consolidate inventory visibility across stores, e-commerce, and warehouses, enabling a holistic view of the company.
Key activities included:
- Project management to deliver within specified budget and timeline
- Future-state MFP process design, integrating the in-season OTB process into the solution
- Configuration of system workflow and views in the predictive application server (partnering with solution integrator)
- Development of business test scripts and leading user acceptance testing (UAT) inclusive of system performance
- Organizational change leadership, including development of training plan and communication strategy
- Development of training materials and conducting system training
- Development and design of standard reporting to support the planning process and create plan transparency across the organization
Results
The client successfully implemented the new MFP solution that supports the retailer’s desired consolidated environment and future business initiatives. The solution was delivered on time and budget. The company now has a holistic view of inventory, gross margin, and sales in time for the fiscal planning cycle across stores, e-commerce and warehouses.
Drive results with better MFP capabilities.
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