Retail Supply Chains. Solved.
Higher Service Levels | Lower Inventories | Lower Supply Chain Costs | Faster Delivery | Omni-Channel Optimized
RightChain Retail Clients and Engagements
We have been fortunate to work with many of the world's largest and most successful traditional and e-commerce retailers. In merchandise retailing, Walt Disney World, Disneyland Paris, and Disneyland California were early RightChain adopters. LL Bean, the premier direct-to-consumer retailer of its day, was an early adopter. Wal-Mart entered Central America on the wings of a RightChain implementation in Costa Rica. Oxxo, the largest retailer in the Spanish speaking world, dominates Spanish language supply chains on the RightChain Retail platform. We could keep going, but you get the idea. In apparel, shoes, food, entertainment, grocery, sporting goods, furniture, cosmetics, electronics, home improvement, consumer products, and automotive.... RightChain Retail has been a catalyst for the successful optimization of many of world's leading retail supply chains.
RightChain Retail Results
RightChain implementations simultaneously increase revenue, reduce expenses and reduce capital charges. The overall result is higher gross margins, higher profitability, and higher return on capital investment.
In supply chain terms, revenue increases via higher fill rates and optimized store delivery frequencies and timing. Expenses are lowered via optimized transportation, warehousing, and sourcing. Supply chain capital charges are decreased via optimized inventory levels, optimized logistics infrastructure designs, and optimized rates.
Historically RightChain implementations yield the following range of results.
1. Lower Inventory (9% to 36%)
2. Higher Fill Rates (2 to 7 points)
3. Lower Supply Chain Costs (8% to 23%)
4. Faster Retail Response Times (1 to 3 days)
Examples of results from five large RightChain implementations follow.
World's Largest Entertainment Retailer
Global Apparel and Sporting Goods Retailer
Largest Retailer in the Spanish Speaking World
Representing 50+ Premier Global Brands with 4,000+ Stores in EU and Middle East
1.5 days shorter
11% reduction in logistics cost
22% inventory reduction
4 points higher fill rate
One of World's Most Active E-Commerce Food Retailers
RightChain Retail Screenshots
RightChain Retail runs on the RightChain Ai platform. The RightChain Ai platform is a fully-scalable, cloud-based, artificial intelligence powered supply chain optimization and planning subscription solution. The platform is composed of four suites - RightChain (Supply Chain Ai, Analytics & Optimization), RightStock (Inventory Ai, Analytics & Optimization), RightTrips (Transportation Ai, Analytics & Optimization), and RightHouse (Warehouse Ai, Analytics & Optimization). Examples of RightChain Ai in action in retail scenarios are illustrated below.
SKU Portfolio Optimization
Supply Chain Network Optimization
RightChain Retail Operations Designs
RightChain's Dr. Ed Frazelle is the author of World-Class Warehousing, the world's best selling book on warehouse design and operations. The book's principles, practices, and optimizations are the guiding forces for hundreds of warehousing and distribution operations world-wide. Many of those are retail distribution centers. Several of those designs crafted by RightChain are highlighted in the buildings below.
Hallmark Distribution Center | Kansas City, MO
Avon Distribution Center | Atlanta, GA
LL Bean Distribution Center in Freeport, Maine
RightChain Retail Rankings
RightChain has been in the business of researching and ranking supply chain performance since the late 1980s. The most recent rankings formula incorporates the current and trending performance of the retailer in several key supply chain financial performance indicators including gross margin percent, gross margin return on inventory, inventory turns, supply chain revenue yield, supply chain margin yield, and supply chain economic value. The RightChain Retail Rankings are computed with RightChain Financials and utilize data from required corporate filings for publicly traded companies. Scores are computed out of a possible score of 100%. The percentage point spread from 100% roughly represents the magnitude of the opportunity for the supply chain to reduce supply chain costs, lower supply chain inventories, and increase the perfect order percentage. Rankings are published throughout the year.
Sporting Footwear and Apparel
The supply chain performance rankings below are based upon the most recently available financial reporting for the following publicly traded firms. Figure 1 assumes all up-to-date data. Figure 2 adds to Figure 1 any entities for which financial records were available when the entity was merged in to another entity.
Our most recent rankings are as follows - (1) adidas, (2) Columbia Sportswear, (3) Skechers, (4) Nike, (5) Wolverine, and (6) Under Armour.
When we include a few historical entries, the picture changes. Not only do the rankings change, but the overall scores suggest that some of the very best supply chain performers in this category have been integrated into the cogs of much larger supply chain offerings. Including a little bit of history adjusts the rankings as follows. Our most recent rankings are as follows - (1) Timberland 2010, (2) Saucony 2004, (3) adidas, (4) Columbia Sportswear, (5) Stride Rite 2006, (6) Skechers, (7) Nike, (8) Wolverine, (9) Under Armour, and (10) K-Swiss 2012. If you've ever thought that things ran smoother in days gone by.... you may just be right.