DSW gets the right fit with SAS® Size Optimization
Shoe retailer DSW Inc. knows exactly how you feel when you find the perfect pair of shoes – just not in your size. That's why the second-largest shoe retailer in the country chose SAS Size Optimization, including SAS Size Profiling and SAS Pack Optimization, to stock the right shoes in the right location at the right time.
Customer Success Video
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Executive VP Supply Chain Merchandise Planning and Allocation
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DSW is seeing early indications that customized shipments can reduce lost sales from stock-outs, increase customer satisfaction, and reduce the percent of stock marked down.
DSW has 363 stores in 41 states and runs an additional 344 shoe departments for other retailers. The company is growing fast – with 37 new locations in a single year in addition to online and mobile shopping platforms.
While shoes are an age-old product, the way they are marketed has changed a lot, notes Harris Mustafa, DSW's Executive Vice President of Supply Chain Merchandise Planning and Allocation. "Customers want to transact at their convenience, not yours.''
Seasonal sales and overseas suppliers create additional challenges.
Finding a better way to stock stores
"It wasn't the most efficient way to run your inventory management,'' says Mustafa.
DSW hosted a trial of SAS and one other finalist, giving both solutions sales data to create size profiles and recommend pack configurations for the next product/inventory buying cycle. The recommendations were compared against what actually sold in the next sales cycle. The SAS results were much more accurate.
Moving the solution into production
In addition, DSW has had great success convincing suppliers to work with the new solution. In some cases, suppliers managed the size packs, so Mustafa wasn't certain how they would respond to requests for a more customized approach.
"These are big companies that are fairly set in how they distribute their product," Mustafa says.
But they're on board – 90 percent of DSW's partner shoe companies are using the customized pack recommendations.
The result? “Our out-of-stocks are fewer, our markdowns are fewer and our margins are higher – which, at the end of the day, is what every retailer wants,’’ Mustafa says. “We were looking for a robust solution that was simple to use, and that’s what we are seeing.’’
The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.
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Executive Vice President of Supply Chain Merchandise Planning and Allocation
Create customized size packs to reduce stock-outs and markdowns.
Stock-outs are fewer, markdowns are fewer and margins are higher.
“"Our out-of-stocks are fewer, our markdowns are fewer and our margins are higher – which, at the end of the day, is what every retailer wants."”
Executive Vice President, Supply Chain Merchandise Planning and Allocation