Kirkland's Home, a 337-store home decor retailer in 35 states, has implemented a customized advanced fashion assortment program that will improve its merchandise financials, location and item planning.
For the project, the retailer turned to Veltio, a consultancy involved in design, implementation and the tuning of Oracle planning and optimization solutions for retailers. Previously, Kirkland had used Microsoft Excel for planning functions, but found the manual system, and the lack of embedded science in the process, to be limiting to its strategic forecasting ability.
"The implementation of these planning tools has improved the planning process and communications between teams, giving us the ability to make faster, better-informed decisions," said Tripp Stevens, senior director of planning and allocation, Kirkland's Home.
The customized assortment planning system replaced the retailer's manual process with an automated system tying financial plans and allocation decisions to the assortment planning and creation strategies. Veltio tightly integrated the merchandise financial planning, location planning and item planning. The overall product visibility gained by the assortment performance has yielded a better understanding of gaps in sales performance, according to a company statement.
"Kirkland's needed automated systems that increased communication between teams," said Joe Martin, Veltio's VP of strategic consulting. "Veltio's configuration of an assortment planning suite allows for peak efficiency in a fully-scalable platform that will grow along with Kirkland's for years to come."
The assortment planning solution was configured by Veltio to address Kirkland's specific challenges. According to the statement, the "one-of-its-kind" assortment planning platform provides a science-driven, automated process that creates sales plans by item, store and week. The insights of the user-friendly program drive allocation decisions and offer guidance to maximize SKU (stock-keeping unit) productivity by store cluster and give greater visibility to sales performance and tier strategies.
Kirkland Home's stores offer a broad selection of merchandise, including framed art, mirrors, candles, lamps, picture frames, accent rugs, garden accessories and artificial floral products. The stores also offer gifts and seasonal merchandise. Besides Oracle planning and optimization solutions, Veltio provides managed client services to solve clients' complex problems.
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