Algo Increases Demand Planning Efficiency and Enables Rapid Innovation for Hollywood Studio

Supply chain challenges

The Hollywood studio faced challenges in reducing replenishment costs, introducing new products without impacting service levels, and reallocating resources to focus on content development.

  • High Replenishment Costs

    The studio needed to reduce excessive costs associated with replenishing inventory efficiently across multiple retail outlets.

  • New Product Introduction Strains on SLAs

    Introducing new products without negatively impacting service-level agreements for existing products was a significant challenge.

  • Resource Allocation Issues

    The need to reallocate internal resources away from supply chain management to focus on their core strength—content creation—was critical​.

Algo’s solution

Algo implemented its Demand Planning and Vendor-Managed Inventory (VMI) solutions to reduce costs, improve product introduction efficiency, and free up resources for content development.

  • Demand Planning and Forecasting

    Algo’s demand planning system introduced efficiency by using algorithms to optimize replenishment and product introduction processes, cutting costs and improving service levels.

  • Vendor-Managed Inventory (VMI)

    Algo’s VMI service automated inventory management, allowing for precise replenishment orders based on real-time data, meeting demand while reducing overstocks.

  • Optimized New Product Introduction

    The New Product Introduction module ensured that the right quantities of new products were sent to retail locations based on actual sales potential, minimizing returns and overstocks.

The results

The studio reduced business costs, streamlined ordering, and established a foundation for ongoing innovation and development in its demand planning process.

By leveraging Algo’s Demand Planning and VMI solutions, the studio achieved critical cost savings and laid the groundwork for future innovation and operational efficiency in their supply chain.

  1. Cost Reduction and Efficient Ordering: The studio experienced significant cost savings and more efficient ordering processes, improving overall profitability.
  2. Foundation for Ongoing Innovation: The implementation of Algo’s solutions provided a strong foundation for continuous improvement and agility in demand planning, supporting rapid product introductions and innovation.

 

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