Lean Supply Chain Projects for CHANEL (13 countries/districts in Asia Pacific, including China)

Business Needs:

1. To work out a lean supply chain project for all 3 divisions: Fashion and Accessories, Watch and Fine Jewelry, and Fragrance and Beauty.
2. To streamline the business process to eliminate the repetitive works so that the management can focus in planning the sales and marketing strategies.
3. To automate the product management operations (including purchasing, allocation and rebalancing), with accurate sales predictions calculated by the system with optimized stock efficiency (i.e. minimize stock level in shop and maximize stock agility)

Challenges:

1. 3 divisions with over 100,000 active SKU have very different properties in products life cycles and sales behavior.
2. The system needs to cover the whole region with 13 markets and countries.
3. Wide product pricing spread and sales quantities spread (individual product sales range from hundreds per day, to 1 or 2 per year)

Solutions:

1. Develop a specific system for each division so that each system can cater the specific business need in a better way.
2. Research and develop sales prediction models specific to each division with different product properties and customer buying behavior.
3. Generalize user workflow and parametrized the system so that a single system in a division can cater the needs of different markets and countries.
4. To drive the concept change in product management: