Curology: Chronic Out-of-Stock (Copy) (Copy) (Copy)

TargetSupply Chain
Written By Shane Hohenstein

Situation

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Situation 〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️

  • Curology was experiencing increasing out-of-stock rates and was under pressure from the Buyer to make immediate improvements. 

  • Their previous broker continued to suggest build orders but this led to increased inventory, lumpy distribution, and increasing out-of-stock sales.

Actions

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Actions 〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️

  • We dug in and found close to $1M in phantom inventory at stores which was blocking replenishment due to incorrect counts.

  • We also found drastic item/store level forecast issues leading to not enough inventory being replenished to these stores. 

  • Partnered with the IA to update store counts and forecasts to unblock flow and send the right amount of product to the right stores. 

Results

Results

  • In our first 90 days on the business we were able to decrease out of stocks from 12% to 2% on less inventory.

  • This also led to improved trust with the Inventory Analyst and the rest of the Target team which has continued to help in maintaining low out of stock rates and increased sales.

Shane Hohenstein
Next

Hefty: Incremental Distribution