Creating the first forecast was always a challenge
The development and planning of new products can take up to three quarters of a year, in which Bamigo works closely with specialised suppliers throughout Europe and Asia. Once a new item has been extensively tested and approved, production can start. At this point, Bamigo must indicate how many units of each colour and size are required for the launch.
“In the past, this was always quite difficult to determine. However, with Slim4, we now have a good process for this,” says product developer and buyer Domenique Snepvangers.
The product developer adds: “One of the strengths of Slim4 is that you can link a new product to an existing article. As a result, the software can immediately make a forecast of anticipated demand. By using a comparable product from a previous collection, you immediately have an idea of how the demand pattern will develop and what the impact of promotions will be, for example.”
Bringing humans & machines together. Bamigo wants to start every season with a beautiful new collection. However, the fashion retailer also wants to minimise end of season sales from the previous season.
To seamlessly phasing products in and out of collections, requires a refined process between people and system, explains Snepvangers. “With a new article, you indicate which products it should connect to and when the new season will start.
As soon as the first orders come in, Slim4 automatically adjusts the initial forecast based on the actual demand. The system knows which items are ‘cannibalizing’ each other and sends an alert if the demand is higher or lower than expected. The system can adjust the orders autonomously. But we can of course also intervene. For example, we can push a supplier order forward or set up additional marketing campaigns. Towards the end of the season, Slim4 also flags items where we need to reduce stock and which new seasonal items will replace them.”