SalesTech Star

From Distribution to Retail Fulfillment, the Footwear Industry Is Turning to Tecsys to Gain Its Supply Chain Advantage

Global footwear brands and retailers are leveraging Tecsys’ Elite™ and Omni™ software platforms to unlock omnichannel distribution and fulfillment capabilities like inventory virtualization, dynamic routing and order consolidation.

Tecsys Inc. (TSX: TCS), an industry-leading supply chain management software company, is pleased to announce its growing leadership position in the footwear industry across its Omni™ and Elite™ software platforms and its capacity to meet the specific requirements involved in omnichannel distribution and retail processes as they shift to hybrid retail models.

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The Tecsys platform serves as the central supply chain execution cog in several footwear organizations across retail, distribution and DTC markets, orchestrating logistics activities across channels and optimizing complex inventory management and fulfillment processes while upholding streamlined customer experiences.

The footwear industry is particularly suitable to network-wide virtualized inventory and dynamic fulfillment because of the complexity involved in inventory management that results from the intersection of size variations and seasonality. Factoring in half-sizes, consider the number of SKUs for one pair of shoes in sizes 7 to 13, and in three colors, black, brown and tan; that is 39 unique products with unique demand levels for each pair.

Tecsys’ distributed order management system, Omni™ OMS, enables footwear retailers and direct-to-consumer brands to carry distributed inventory across fulfillment locations, eliminating the need to stock products with the lowest demand at every site. This allows for more strategic inventory management that provides reasonable access to SKUs while forward positioning the fastest moving SKUs. The Elite™ product line enables enterprise-level complex and converging markets to operate world-class warehousing, delivery and fulfillment operations in order to gain control over customers’ service levels, throughput volumes, order turnaround times, as well as warehousing costs, growth and profitability.

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“It is no surprise that footwear companies are investing in this kind of technology because they have historically been hit pretty hard with end-of-line challenges where sizes or colors known to be less popular are stockpiled because they wanted to make sure that outlier customers are still accommodated. Tecsys software is a pragmatic solution to that problem,” says Guy Courtin, vice president and industry principal for Retail at Tecsys. “By allocating product according to demand and virtualizing slower moving inventory while reducing buffers, retailers are able to satisfy consumer expectations without swallowing enormous losses at the end of every season – all the while hedging against customer disappointment because their size is unavailable online or at a certain store.”

One such example is Aetrex Worldwide Inc., one of the fastest growing companies in the footwear industry and widely recognized as the global leader in comfort and wellness footwear products. Tecsys’ Elite™ WMS has enabled Aetrex to grow rapidly and achieve its strategic sales and customer services goals, such as increased volume by 80% without additional staff, increased inventory accuracy by 70% and reduced cost by 24%.

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