AI and Machine Learning Help Patagonia’s Global Business Multiply

Business Challenges

On a mission to reduce waste, Patagonia set out to improve their sales demand forecasting and allocation strategy to minimize overstocking and overproduction. The brand struggled with long sales cycles for some products, making assortment planning and inventory management difficult. While the brand is known for their industry-leading level of forecasting accuracy, they sought a technological solution to help them achieve a higher degree of consistency to positively impact financial plans and sales plans.

Solution

By integrating real-time data throughout their processes and fostering collaboration amongst departments, Patagonia was able to ensure order volume and shipment quantities aligned with company plans; AI models and machine learning capabilities recommend the quantity of goods to be allocated down to style, color, size. 7thonline’s platform empowered their teams to manage product plans across quarters and fiscal years by addressing concerns derived from long product lifecycles, and helped them focus on developing sophisticated product plans and supply chain management strategies.

Company Profile

Patagonia is an environmentally-conscious company specializing in outdoor sports equipment and apparel. A designer of outdoor clothing and gear for the silent sports, the company operates globally with over 100 stores worldwide and factories in 16 countries.

Multi-Channel Management Helps Calvin Klein Make Precise Business Decisions

Business Challenges

With a large global presence, diverse product range and heavy datasets, information processing is timely and complex. Calvin Klein struggled with high resource costs and inventory mismanagement for all channels—brick-and-mortar, ecommerce, wholesale distributors, etc—resulting from redundant and disjointed business practices between various functions and brand departments. They sought to unify business processes and improve their sales forecasting around product categories to make precise inventory decisions down to style, color, size. 

Solution

Using 7thonline, Calvin Klein was able to improve work efficiencies by obtaining complete order information spanning all regions. With real-time data and cross-department collaboration, their product planning, sales and product teams were able to enhance their workflow and standardize merchandise planning operations—closing the loop with a centralized planning system that fosters collaboration and strengthen communication.

The platform also simplifies data analysis from multi-dimensional data inputs to derive high-value insights and inform merchandising decisions; 7thonline’s localized size profiling feature even addressed their challenge forecasting sales down to style, color, size due to diverse size parameters for different categories, resulting in more precise inventory decisions for their numerous stores around the world. 

Company Profile

One of America’s largest brands, Calvin Klein sells products in over 20,000 stores worldwide across their four main sub-brands: CK Calvin Klein (premium ready-to-wear), Calvin Klein Jeans (denim), Calvin Klein Underwear (intimates) and Calvin Klein Performance (sportswear). With a legendary legacy, large physical global presence and diverse product range, Calvin Klein has a strong history in the apparel industry.