Furniture Manufacturer Designs Optimal Inventory Management

Ashley Furniture needed to fuel profitable growth while creating a customer-first experience by improving its perfect order index with fast and efficient delivery without increasing safety stock.

Furniture Manufacturer Designs Optimal Inventory Management

Challenge

For leading global furniture designer, manufacturer and retailer Ashley Furniture, customer expectations have never been higher.

To ensure the company’s continued growth, Ashley Furniture wanted to increase its already high customer service levels and create a truly customer-first experience. This meant improving its perfect order index with fast and efficient delivery of defect-free products.

Ashley Furniture wanted to do this all without increasing safety stock and avoiding the rises in inventory, storage and transportation costs that would bring.

To succeed in this new goal, Ashley Furniture needed a more efficient way to optimise its inventory across its entire supply chain.

Solution

Ashley Furniture has partnered with Logility since 1998 for its sales and operations planning (S&OP). The business turned to Logility once again to help fulfil its new customer service and inventory goals.

Ashley Furniture implemented the Logility Inventory Optimization solution to give it the visibility it needed across its entire supply chain. The platform’s insights enable the company to reduce safety stock and optimise inventory at the item level, which also avoids the need for additional distribution centre space.

With Logility, Ashley Furniture is right-sizing its inventory. It’s getting its inventory to the right locations, reducing it where possible and increasing it where needed.

Impact

The Logility platform allows Ashley Furniture to better manage its business based on true demand. Now, the organisation can place inventory where and when it’s needed to support its customers’ requirements. It has improved its sales and operations planning, better aligning supply, demand and inventory.

Ashley Furniture has also experienced other unplanned benefits of the Logility platform, including identifying additional opportunities to reduce forecast error, which is bringing associated cost savings from not buying inventory or transferring it from incorrect locations.

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