One of the most recognized apparel brands, Haggar has sold comfortable, high-quality men’s clothing since 1926. Haggar is a top US manufacturer of dress pants, suit separates, casual pants and shorts.
Haggar’s biggest challenges include market segmentation for an increasingly complicated omni-channel network and sourcing products and materials across a global outsourced environment. This growing complexity has sparked the need for new market insights and better decision making across the business. Haggar needed a digital supply chain platform to help increase free cash flow by maximizing fill rates using an optimized inventory strategy to boost service and delight customers.
Move to omni-channel
Servicing evolving channels from brick-and-mortar to globally based retailers, e-tailers, owned stores and direct-to-consumer requires a segmentation strategy.
Lead times have been significantly impacted through the supply chain complexity that comes with outsourcing production.
Vast amounts of data
With e-commerce and direct-to-consumer, Haggar supports a much broader SKU assortment at any given time, with huge amounts of data to process and analyze.
A familiar challenge in the apparel space – countless variables including style, fit, color and size.
“Today, with e-commerce and direct-to-consumer, we must support a much broader SKU assortment at any given time. Fortunately, we realized that our Logility framework for demand planning and inventory replenishment was the right platform to meet these new challenges. We had already built the customer and product-location hierarchies as part of the demand and inventory planning processes, so we simply extended them to support the direct-to-consumer and vendor-managed inventory channels,” explained Pravin Rangachari, senior vice president of planning and analytics at Haggar.
Product complexity in the apparel space is a given with countless variables including style, fit, color and size. For example, Haggar’s pants are offered in a classic fit, straight fit, slim fit and skinny fit, and in a variety of colors and styles. Accounting for all the possible combinations, the point of sale data runs into hundreds of millions of combinations.
At Haggar, size proliferation was an ongoing issue. Account managers allowed customers to drive the size mix ordered, resulting in inconsistent sizing across channels. Because the company didn’t have a regular process to evaluate sizing based on performance history, Haggar implemented sizing criteria based on product category, fit and channel, plus a combination of point of sale and actual demand history tracked in Logility. Haggar now reviews its sizing every season, and with this data in hand, it is able to make proactive buying recommendations to customers: a win win for both parties.
Haggar was also able to simplify size-level data for its e-commerce and direct-to-consumer channels resulting in more consistent forecasts and better supply chain plans focused on higher-margin SKUs. Additionally, these changes have enabled the company to achieve greater planner efficiency, especially for new items.
With the Logility® Digital Supply Chain Platform, Haggar enjoys one solution to plan its entire omni-channel network with a single version of the truth which has enabled it to simplify data management, increase planner efficiency and deliver more consistent forecasts. For the direct-to-consumer channel, Logility helped reduce significant manual work by providing forecast and inventory visibility across the business. For the vendor managed inventory (VMI) channel, Logility helped Haggar better control shipments by enabling them to get the right SKUs at the right time to the right stores.