Paragon Footwear, one of the largest homegrown footwear brands in India, has found success in offline and online retail. The brand manufactures crores of pairs every year. While its eCommerce presence is successful, and growing in all parts of the country, it faces some challenges that are unique to a company of its size – such as effective regional utilization.
Their challenge: Lack of optimization in stock distribution
Given the sheer range of products and SKUs for a brand of Paragon’s scale, stock distribution based on region and state remains a major aspect, and a challenge, of inventory planning. When done right, optimized regional supply adjusted to keep pace with changing demands drastically decreases delivery timelines and shipping costs – which means higher conversion.
This is important in eCommerce as the brand’s range of products is exposed to the entire customer base across the country. And to cater to customers across various regions quickly and efficiently, it becomes imperative to distribute inventory strategically. That’s where Tensight comes in.
Our strategy: Leveraging Tensight’s regional inventory planning functions
Using Tensight’s regional utilization dashboard, we conducted a detailed analysis of Paragon’s existing state and regional utilization – both overall and across warehouses. This exercise allowed us to support the brand in a few vital ways.
- Discovering sales potential: We identified regions that experienced higher demand as well as states and regions that had immense potential for sales growth.
- Opening new warehouses in strategic locations: Using Tensight’s vital insights and inputs, we created a new strategy to ensure optimal distribution of inventory across India, after which the brand opened two new warehouses in the eastern and western regions of the country.
- Fine-tuning SKUs: Further, we also studied the demand from these zones and on-hand inventory to provide an optimal distribution report to distribute inventory on an SKU level across warehouses and regions.
Our impact: Better regional utilization, happier customers