Red Wing Shoe Company’s journey started with a spreadsheets–based process to manage critical supply chain planning activities. This exposed the company to several risks and limitations including inaccurate balancing of inventory, reliance on static data, and limited visibility into its own operations as well as those of its suppliers and partners.
As the company grew and started leveraging suppliers and partners around the world it became apparent its processes were not as robust or synchronized for profitable demand and supply balancing. The company lacked visibility across its global supply chain network, a critical need for a company that offers unique products for several of the markets and channels it serves. The game changer was when the company began investing in their supply chain people, process and technology. This included APICS certification and deploying industry–leading software from Logility.
“In a fast changing market such as footwear and apparel, we need to stay ahead of customer needs, anticipate swings in demand and work closely with our suppliers to generate and execute accurate supply plans,” said Dave Magness, senior vice president, Supply Chain, Red Wing Shoe Company. “Our deployment of Logility Voyager Solutions has enabled us to significantly accelerate our S&OP process which has been instrumental in aligning our corporate goals and strategy across brands and functional areas. Our transformation has been a team effort and we appreciate Logility’s recognition of our hard work and dedication to creating a world–class supply chain.”
In less than 18 months following the go–live of new technology and processes Red Wing Shoe Company was able to free up a significant amount of working capital locked into its inventory, and started to classify service levels by product family and then onto specific SKUs by customer. This detailed level of accurate information and increased visibility across its global operations helped cut the Red Wing Shoe Company sales and operations planning (S&OP) process time in half, shorten lead times by 30 percent, reduce inventory across the network 27 percent while also improving customer service levels up to 10 percent, and enable true collaboration with its suppliers and partners.
“Red Wing Shoe Company identified its supply chain as a catalyst to help drive more profitable growth,” said Mike Edenfield, president and CEO, Logility. “In just 18 months, the company has turned its supply chain into a growth engine; powering its sales and operations planning process, enabling tighter collaboration with trading partners, and helping reduce costs while improving service levels. All of us at Logility congratulate the team at Red Wing Shoe Company for this deserving recognition.”
- On Demand Webcast: Integrating S&OP
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