Aptean Allocation, Forecasting and Replenishment
Marcolin optimizes stock poistions and maximizes customer satisfaction
Industry
Eyewear
Challenges
» Lack of visibility was preventing the company from having better insights into distributors’ channel specific demand
» Continuous swings in demand generated by variations in the epidemic curve
Benefits
» Optimized stock levels and product availability
» Achieved new levels of integration throughout the supply chain
» Deeper understanding of what happens inside the stores
Marcolin: a leading worldwide eyewear company
Marcolin has successfully deployed the Aptean Allocation, Forecasting and Replenishment solution, resulting in optimized product availability and stock levels to its distribution partners, notably large optical retail chains in 125 countries.
Based in Longarone, Italy, Marcolin has been creating, manufacturing and distributing sunglasses and optical glasses since 1961. The dual vocation of the group, to combine craftsmanship with a strong ability to innovate and dictate new fashion trends, has determined its international success.
Over its 60-year history, the group has developed an in-depth know-how of the entire eyewear production process; an invaluable strength that has convinced a vast number of global iconic brands to choose Marcolin’s products.
The group’s portfolio comprises the house brands Web, Marcolin and Viva, as well as a wide range of licensed brands including Tom Ford, Guess, adidas, Bally, Moncler, Max Mara, Longines, OMEGA, Barton, Tod’s, BMW and Swarovski, just to mention a few. Through its network of over 150 retailer partners, Marcolin distributes its products in more than 125 countries.
The Objectives of the Project
The project with Aptean Allocation, Forecasting and Replenishment, named “MORE” (Marcolin Order Replenishment Evolution) is highly strategic to Marcolin in the way it revolutionizes the way the company interacts with its global distributors.
Alberto Fratantonio, MORE Project Leader, explained: “We manufacture sun and optical frames for renowned global brands. Our products are sold through a large network of 150 retailers, both optical retail chains and independent optical shops, in Italy and abroad.”
“We started the MORE project with the goal in mind of radically changing the traditional business model where the manufacturer produces and sends the products to its customers (distributors) with a ’push’ approach,” Fratantonio continued. “At Marcolin, we want to be a reliable partner to our retail network; one that understands their needs.”
Marcolin acknowledged that this was only possible through a deeper integration with its retail partners and by achieving better insights into distributors’ channel specific demand.
“Through tighter cooperation with our distributors and the sharing of demand data we can plan more accurately and send them the best mix of products to their shops,” noted Fratantonio. In particular, Marcolin has activated the MORE program with the following objectives:
› Tighter collaboration with Marcolin’s distribution partners, meaning end-to-end integration of the supply chain from product development to shelf;
› Better understanding of distributors’ business logics and insights into their online and store demand;
› Optimized stock levels, product availability and ultimately maximized satisfaction for the end consumer.
The Solution
As part of the MORE initiative, Marcolin has deployed the Aptean Allocation, Forecasting and Replenishment solution.
With help from the application, Marcolin has established a collaborative forecasting process in which the optical retail chains participating in the MORE program share their sales and inventory data, as well as planograms directly with Marcolin.
These insights into demand become inputs into an automated replenishment process, allowing Marcolin to better plan its production and replenish the right products at the right time to the retailers selling its products.
Despite the pandemic, Marcolin has managed to deploy the MORE program across most European markets while involving different types of retail partners, from physical retail chains to e-commerce retailers.
“The project has generated extremely positive feedback, both within our own company and with our retail network,” noted Fratantonio. “Particularly, our customers (distributors) appreciate MORE not only for the automated and flexible replenishments, but because we have achieved new levels of integration throughout the supply chain.”
Working in an integrated manner means that all partners in the supply chain network can benefit from heightened levels of visibility; they can stay on top of demand and be responsive to any demand swing, which becomes more rapidly visible to all.
The approach prevents stocking undesired inventories and hence can lead to cost reduction.
“Thanks to MORE we have a far deeper understanding of what happens inside the stores and we can therefore adopt the same perspective of the retailers, speak their own language and analyze the same KPIs,” added Fratantonio. “This level of visibility allows us not only to strengthen the collaboration with our retail network and reinforce the trust they place in us as a business partner, but it also helps us to get ever closer to customers and overall market trends.”
Given the success of the MORE initiative in Europe, the group is looking to rapidly expand the program to its global retail network.
The Benefits
With Aptean Allocation, Forecasting and Replenishment and its MORE program, Marcolin has established a collaborative forecasting and optimized replenishment process that is a win for all parties who participate in the project.
The initiative helps minimize the risks of stock-outs and stock-overs along the network while maximizing product availability in store, and elevating customer satisfaction.
Partners in the program share a common business plan, objectives, timelines and data. They are more connected and more prepared for the future.
Importantly, the MORE initiative has allowed for a whole new level of responsiveness to demand that has been key amid the pandemic.
“Thanks to the MORE project and the ability to execute just-in-time replenishments, we have optimally supported the needs of our customers over this very unique period,” noted Fratantonio.
“We have been able to dynamically adjust our replenishments every week, matching the continuous swings in demand generated by variations in the epidemic curve and the resulting social and business restrictions,” he added.
According to Marcolin, the MORE project has delivered important benefits to the group and its partners, including:
› Strategic integration and close communications with the retail network;
› Stronger visibility on demand and deeper understanding of local markets;
› Greater responsiveness of the whole supply chain to demand variations, resulting in higher sell-out;
› Optimized stock levels across the chain meaning less waste and more sustainable operations;
› Maximized customer satisfaction with the best products available at the right time in the right location to meet customers’ needs.
Why Aptean Allocation, Forecasting and Replenishment
According to Marcolin, Aptean Allocation, Forecasting and Replenishment was selected for its deep understanding of the eyewear sector and flexibility to the group’s specific needs.
“The eyewear industry is extremely peculiar,” explained Fratantonio. “Glasses are medical devices with a strong technical component but also accessories that follow the ways of fashion, having a variable product lifecycle and being subject to high demand volatility.”
“What we value the most about Aptean Allocation, Forecasting and Replenishment is the team’s flexibility,” said Fratantonio. “Together, and with the use of Aptean Allocation, Forecasting and Replenishment’s technology, we have implemented a best practice planning process that is an ideal match to our special needs; it supports our vision and organizational requirements.”
