After a couple of months, Conn’s expanded the new replenishment solution to its retail stores.īenefits of the new VMI solution have included better store replenishment forecasting, resulting in fewer product returns and stock-outs, helping to increase sales. The first implementation step was a controlled rollout to Conn’s regional DCs and hub-spoke DCs, where the new solution was accepted by managers. ![]() ![]() Inventory goes out to the company’s own facilities, rather than coming in from vendors. However, Conn’s implementation of the solution does not involve the usage of “true” VMI practices. The retailer was already utilizing TrueCommerce electronic data interchange (EDI) technology, and saw potential synergies with the solution provider’s VMI application. Seeking to improve store replenishment forecasting, eliminate manual effort, and support next-day delivery, the retailer decided to replace this legacy approach with automation.Īs a result, Conn’s implemented the TrueCommerce vendor-managed inventory (VMI) solution to optimize store replenishment allocation and truck utilization. The company used a “min/max” replenishment strategy, waiting for inventory to reach minimum levels and then buying the maximum amount of replacement product. The s pecialty retailer of furniture, mattresses, home appliances and consumer electronics uses a “hub-and-spoke” distribution model, with product replenishment moving from a distribution network involving two regional distribution centers, 11 hub-spoke distribution centers, and 146 retail locations.įor almost 40 years, Conn’s had managed store replenishment allocation on a legacy mainframe system, requiring manual, spreadsheet-based forecasting. ![]() Conn’s HomePlus is leveraging vendor-managed inventory (VMI) technology to ensure products are available for delivery the day after a customer order.
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