Rodolphe BerebyVP Finance & Operations, DE FURSAC
Former CFO/CDO, Adore Me
Using Magento
to Grow your
Business
Quick Intro to Adore Me
For the past 25 years, many
have tried to do this, from
major brands to startups.
They all failed to Victoria’s
Secret – We succeeded.
• New women’s intimates online ecommerce
• Superior product
• Better service
• Perfect platforms
• Inspirational brand
• Killer price
• Addressing millennial women needs
• Ranked No. 2 on the Inc. 500 list of fastest-growing companies in NYC and more than 1 M Facebook likes
Insights from Adore MeDemand planning : Order to deliver (OTD)
A Very Complex Challenge
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2014 2015
500%
274%
276%
20132012
Fast-fashion StyleDiversity
VolatileGrowth
Big DataLong lead time
StrongCompetition
Process
MassiveMinimum order
Quantity
ProductComplexity“If you want to start a brand with, say,
100 different styles, and you need to purchase 5,000 to 10,000 units of each, that’s a $10 million to $15 million investment before you’ve made any sales” Morgan Hermand, CEO Adore Me, NYT, February 2015
We Collected All Data from Magento• We have developed a visual tool in Magento to capture in real time product data :
– Past 12 mosales
– Current inventory
– Future deliveries (Purchase Orders already placednths)
Supply Chain OTD – Overview
Identification
of needs
Supplier
inquiry and
negotiation
Ongoing orders
follow up
Delivery
follow-up
• What to buy?
• When to
buy?
• How much to
buy?
• What is
available?
• What price?
• What
quantity?
• What
incoterm?
• What lead
time?
• How to
ensure
products
and delivery
infor-mation
are updated
in Magento?
• How to
follow up
the different
orders?
• How to
ensure that
Adore Me is
paying for
what they
actually
ordered?
What
2 3 4
Data
validation
1
• How to
ensure
that the
data
available
in the
system
are
accurate?
Bold: Detailed slide
Definition of Procurement Needs• Units sold
(forecast)
• Future deliveries
• Procurement needs to be delivered on that month to meet safety stock
• E.g. We will need to receive an additional 29,200 bras push-up in March 2016 to maintain safety stock
1
Top-Down Approach
Act 2015 Fcst 2016 Variance
% Cat. Sales % Cat. Sales (Abs. Value) Color Replenish New % of Total
21% 23% 2% Bras Black 18,500 - 22%
23% 21% 3% Bras Pink 20,000 6,000 30%
9% 10% 0% Bras White 6,000 - 7%
20% 18% 2% Bras Blue 18,000 - 21%
6% 7% 0% Bras Purple 2,500 - 3%
2% 3% 1% Bras Red 2,500 - 3%
4% 3% 1% Bras Yellow - - 0%
5% 7% 2% Bras Nude 9,000 - 11%
1% 1% 0% Bras Orange - - 0%
3% 3% 0% Bras Gray 3,000 - 4%
4% 4% 0% Bras Green - - 0%
0% 0% 0% Bras Brown - - 0%
2% 1% 1% Bras Print - - 0%
100% 100% 12% 79,500 6,000 100%
PROPOSED ORDERS
BRAS (REGULAR) -- Sep order for May/June showroom
Current inventory : 210
Sales last 12 months: 2.2k
Highest month: 1.0k
Open PO: 6000 (Oct)
Proposed PO: 4000
Allison
Current inventory : 263
Sales last 12 months: 3.9k
Highest month: 2.5k
Open PO: 0
Proposed PO: 7000
Mariana
FY16 (Fcst) FY15 (Act)
Total Revenue ($ '000s) 23,731 9,260
Total Sets 702,073 298,243
Bras (Regular) % of Total 39.0% 36.3%
Bras (Plus) % of Total 16.5% 10.4%
Bras (Total) % of Total 55.6% 46.7%
May/Jun/Jul
After 18 Months of Implementation
ERP’s objectives
• Facilitate the procurement
needs definition in terms of
time, quality, quantity and cost
• Highlight Magento’s
hypotheses, calculation rules
and avoid the “automatically
calculated” syndrome
• Facilitate continuous
improvement by updating a
library case of issues e.g. sold
out size, excess inventory
Integrated real time visibility
• Sales
• Inventory
• Order and Purchase order
• Costs and incoterms
• Logistics and quality check
• Receiving and payment
What Snapshot
After 18 Months of Implementation
ERP’s objectives
• Facilitate the procurement
needs definition in terms of
time, quality, quantity and cost
• Highlight Magento’s
hypotheses, calculation rules
and avoid the “automatically
calculated” syndrome
• Facilitate continuous
improvement by updating a
library case of issues e.g. sold
out size, excess inventory
Size breakdown suggestion
• Define the quantity to order
per size based on:
• Product characteristics
• Sales history
• Inventory
• Order placed
• Control, update & validation
What Snapshot
After 18 Months of Implementation
ERP’s objectives
• Facilitate the procurement
needs definition in terms of
time, quality, quantity and cost
• Highlight Magento’s
hypotheses, calculation rules
and avoid the “automatically
calculated” syndrome
• Facilitate continuous
improvement by updating a
library case of issues e.g. sold
out size, excess inventory
Communication interface
• Internal notifications
• PO status update
• External bridge with supplier
• Quantity
• Price and Incoterm
• Expected Delivery Date
What Snapshot
After 18 Months of Implementation
Strong KPI achieved
• Inventory management:
analytical and efficient! Only
4% of all units are slow
movers (i.e., didn’t sell a unit
in the past 3 months)
• 30% of sales from “Must-have”
products sold all year long and
with 5 months safety stock
level
• Millions of $ saved from better
inventory management without
damaging sales growth
Level of inventory, Month of sales estimates
3
4
5
6
7
8
9
10
Mar2013
Jun2013
Sept2013
Dec2013
Mar2014
July2014
Sept2014
Dec2014
Mar2015
205k
XX # of sets
Target for 2015
266k 338k173k 233k 327k216k 204k
Next steps
Fit to De Fursac
Quick Intro to DE FURSAC
• Luxury formal and casual chic “French elegance” for men clothing
• 39 stores and corners
• 2 digit YoY sales growth since 2012
• Recent successful launches of knitwear, shoes and more to come…
• Ecommerce sales quickly growing since 2012
• A corner recently opened in Switzerland and more store openings in Belgium, Switzerland, UK… to come soon
Fit To DE FURSAC
• Use Magento to develop cross channel sales :
– Build data analytics visual tools
– Implement a new procurement process
Shorter lead
time
2 collections
a year Vs
every month
“Slower”
growth
40 POS and
an online
store
My Background
• A Science and Finance background : – Graduated from Mines de Paris, top-3 French engineering school (Master of Science)
– 8-yrs experience at Ernst & Young and L’Oreal
– Gained skills in financial planning & analysis, internal controls…
• And a strong appetite for big data, online economics, supply chain and entrepreneurship :
– 3-yrs experience as Chief Finance and Data Officer (CFO & CDO) of Adore Me in New York in charge of Finance, HR, Demand planning, Customer segmentation, lifetime value & other customer analysis
– Joined in 2012 at an early stage and helped the business to grow by 150% every year while managing cash, inventory and implementing “lean” procurement process
– Drove inventory level from 12 to 4 months of future sales while keeping steady growth and high level of product availability
– Frequent use of Magento as tool to prepare products & customers analysis to hack growth with smart inventory management
– Recently joined De Fursac as Vice President of Finance & Operations in charge of Finance, HR, Logistics, Production and Data analytics
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