Luxury Fashion Brand (Spain)

CLIENT

A luxury fashion brand balancing service levels, seasonality, and working capital.

PROBLEM STATEMENT

Inventory was not aligned to SKU behaviour and service targets. Some items were overstocked while priority items stocked out, leading to cash tied up in slow movers and avoidable availability gaps.

WHAT WE DID

Designed and implemented a Multi-Echelon Inventory Optimisation (MEIO) approach to set inventory targets across the full network (central warehouse → regional nodes → stores/DCs)

Segmented SKUs and defined target service levels by segment, margin, and demand volatility

Optimised replenishment parameters (lead times, reorder points, review cycles) and established rules for seasonal and new-product behaviour

RESULT

The MEIO-led approach reduced inventory holding by ~7-10% (releasing working capital) while improving availability on priority/core SKUs. By removing duplicated buffers and stabilising replenishment rules, inventory turns improved by ~0.6x, creating a better balance between service levels, cash, and network stability.