A Rapidly Growing E-Commerce Leader in Need of Modernization
SupplyHouse.com, a privately-owned e-commerce business based in Long Island, NY, operates exclusively online, focusing on the U.S. market. They manage an extensive assortment of SKUs across four fulfillment centers (FCs) located in New Jersey, Ohio, Texas, and Nevada. The company has experienced rapid growth, necessitating a modernization of their supply chain management processes.
Harnessing AI to Transform Supply Chain Efficiency
After a period of rapid growth, SupplyHouse.com faced challenges due to manual processes, a lack of automation, and insufficient data visualization tools. These issues prompted a vendor search in late 2022, leading to the selection of RELEX Solutions in early 2023. The project kicked off in August 2023, with a full rollout to their FCs in May 2024.
SupplyHouse.com sought to modernize their supply chain management by deploying an AI-driven solution that could streamline and automate their processes. RELEX partner, RetSci, supported the implementation of the project.
They aimed to enhance demand prediction accuracy, improve collaboration with suppliers through shared forecasts, balance delivery schedules to prevent bottlenecks, and automate the replenishment process to reduce manual order maintenance for their distribution centers. Some of the key factors in selecting RELEX included positive experiences from key contacts, RELEX customer references, and a strong cultural fit between the two companies.
The primary objectives for the project were to:
- Improve order accuracy, reducing manual order maintenance
- Increase fill rate across all products
- Improve long-term forecast accuracy
- Align inventory goals with company financials
- Create meaningful and actionable reporting
- Increase the percentage of lines ordered in case/pallet quantities
Driving Efficiency and Accuracy in Supply Chain Management
Since going live in May 2024, the project has already begun to achieve SupplyHouse.com’s goals. The implementation of the RELEX solutions has significantly reduced user working time, enhancing overall operational efficiency. The early results indicate a successful trajectory towards meeting their objectives.
RELEX advanced forecasting uses AI-powered algorithms to analyze demand drivers, such as seasonal and weekly trends, range changes, and other factors to generate accurate demand forecasts. This has improved long-term forecast accuracy, allowing SupplyHouse.com to better align inventory with actual demand. By sharing forecasts with suppliers, SupplyHouse.com ensures better collaboration and alignment, reducing stockouts and overstock situations.
Through advanced capacity optimization, the company also implemented a process to balance delivery schedules, preventing bottlenecks and ensuring a steady flow of goods to the distribution centers. This approach has helped maintain consistent inventory levels and reduced the strain on their logistics operations. Additionally, automated replenishment processes have significantly reduced the need for manual order maintenance, allowing staff to focus on more strategic tasks.
Key metrics show significant improvements:
- Decreased split shipments significantly due to more accurate forecasting and efficient replenishment.
- Optimized inventory levels which led to greatly reduced inventory investment and holding costs.
- Improved primary fill rate over the previous year, ensuring timely availability of inventory and reduced obsolescence.
“RELEX has allowed us to greatly improve our efficiency in the day-to-day tasks of a demand planner,” said Kaytee Grey, VP Fulfillment Operations, SupplyHouse.com. “This has made room for the team to evolve into more of a strategic partner to the organization versus a data entry-heavy employee. We have hired such a talented and creative team, and RELEX has allowed us to deploy them to their full potential. The results speak for themselves!”
SupplyHouse.com is enthusiastic about further collaboration, demonstrating a continued commitment to leveraging advanced AI-driven supply chain solutions.