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Case Study: Virtual Inventory Reservation Using Allocation at Levi Strauss & Co.

Hear how Levi Strauss & Co., an apparel company with a long history of iconic products in the marketplace, implemented a global order allocation process and solution. Manually allocating constrained supply to orders after they had been confirmed to customers was not manageable in a growth environment. In addition, order confirmations via first-in first-out practices was not optimal for profitability and service-level targets. Learn how Levi Strauss & Co. and SCM Accelerators LLC designed and developed product allocation in SAP IS-AFS to model supply reservations during the order-taking process to check against actual size-level supply and customer allocation constraints at the style-color level. Hear about the implementation lessons learned and the company’s future plans for enabling product allocation in SAP S/4HANA Fashion Advanced Available-To-Promise (aATP).

Key Business Benefits:

  • Achieve interactive management of allocation quantities and the ability to make and execute real-time decisions. Flexible and fast response capabilities allow for changing demand and supply situations as well as strategic course corrections.
  • Strategically share supply shortfalls across the key customer base, providing better overall market penetration and a higher level of customer trust.
  • Improve inventory and working capital management to substantially reduce excess purchases and inventory channel markdowns.