Successful roll-out of TXT forecasting and replenishment software increases stock rotation and instore availability
Sephora, the international leader in skin care and fragrances, has deployed the TXTPlanning software by TXT Retail to forecast and replenish its stores on a global scale. The solution, a cornerstone of Sephora’s Supply Chain Transformation project named “Galaxy”, has been successfully rolled out to 330 stores in France, followed by Poland, China and the US to become the corporate standard for every new store opening.
With more than 2,100 stores in 32 countries, including over 360 stores in North America and a growing offering of more than 65,000 products, Sephora is a truly global omnichannel retailer. The Group runs flagship stores, concessions in department stores and internet stores, with an unparalleled assortment of prestige products, beauty and wellness advisors, interactive shopping environments and innovation centers.
According to Sephora, the use of TXTPlanning for forecasting and replenishment is generating significant gains: “Stock rotation has increased and this means carrying less stock in each store, as well as reducing stock-outs and obsolescence rates.”
Planning for a growing, dynamic business such as Sephora is a very complex task, especially given the highly seasonal nature of some cosmetics, not to mention variable lead times from multiple suppliers. Constant innovation and a wide range of influences which drive sales, including beauty advisors, extra gondolas and media campaigns, are just some of the complexities facing planners.
Following the adoption of the TXT AgileFit methodology for a faster deployment, TXTPlanning became fully operational in France in record time. The solution fully supports the four key objectives initially set out by Sephora: to base sales forecasts on sell-through rates of stores and be able to drill down through data by week, item and store level; to manage all products with TXTPlanning, including slow-movers; to propagate demand from stores to its distribution centers and suppliers for greater forecast accuracy; to forecast demand taking into account any special events and promotional activity, as well as the seasonality of products.
Sephora also leverages the capacity planning functionality of TXTPlanning in order to optimize replenishment at store and warehouse levels during peaks periods. Forecasting, which now has a fourmonth horizon, drives replenishments upstream and generates orders to suppliers. “This is particularly important for peak periods such as Christmas, when you simply can’t place all of your orders as late as mid-December,” it said.
According to Sephora, the ability to anticipate needs and start planning for Christmas early in September has translated into greater agility and resulted in a number of efficiencies, such as stores having fewer overstocks. “Less pressure on deliveries and improved planning means that stores can stay completely focused on the customer.”
The implementation of TXTPlanning coincided with a considerable visionary effort by Sephora to rethink the process. This included introducing new skills, communicating and training all departments, both in forecasting, and in change management. Sales & Operations Planning meetings nowadays involve all relevant departments, including Marketing, Supply Chain and Finance.
“The project was fast, innovative and ambitious. It was a pleasure collaborating with Sephora’s talented, enthusiastic team,” said Simone Pozzi, Managing Director at TXT Retail. “We are really proud to be working with such a visionary Group as Sephora. Our solutions continue to help retailers of this calibre stay at the forefront of Planning practices and achieve tangible business benefits.”
About TXT Retail
TXT Retail is the first mover and leading provider of integrated and collaborative End-to-End Planning, PLM and Supply Chain Collaboration solutions for the Luxury, Fashion and Consumer sectors. The TXT Retail solution is based on a flexible platform that encompasses the full spectrum of activities involved with planning, designing, delivery, and managing assortments through every stage of its lifecycle. TXT Retail projects leverage the TXT AgileFit best practices processes and reference applications, which ensure high quality and fast benefit generation. TXT Retail counts on more than 300 employees and serves more than 300 Fashion, Retail and Luxury customers worldwide, including leading global players such as Aeropostale, Arcadia Group, Auchan, Bestseller, Carphone Warehouse, Desigual, Dior, Geox, Guess, Levi Strauss & Co., Louis Vuitton Malletier, Monoprix, Pandora, Sephora and Tesco. TXT Retail Global Headquarters are in Milan, Italy with offices in Australia, Canada, France, Germany, Hong Kong, Italy, Singapore, Spain, United Kingdom and United States. TXT Retail collaborates with selected specialized partners worldwide. TXT Retail is part of TXT e-solutions, a company listed on the Italian Stock Exchange (TXT.MI) www.txtretail.com