PACSUN Boosts Inventory Efficiency and Lowers Costs through Omnichannel Allocation and Fulfillment

pac-sun

Overview

Retailers have seen their online sales and fulfillment costs accelerate due to the pandemic. The increased online sales strain operations while the higher costs depress margins. Because of these factors, PACSUN added intelligence to their allocation and fulfillment processes to optimize their inventory efficiency across their enterprise.

“Antuit.ai’s solutions and expertise ensure we have the right inventory in the right stores, which significantly improves our ship completes.”

Shirly Gao

PACSUN, CIO

Challenge

After the 2019 holiday season, before the pandemic, PACSUN foresaw the need to adjust its operations to account for online growth. Their DC’s didn’t have the necessary capacity, stores had to fulfill orders, and shipping costs would explode if they didn’t adjust their processes. Then the pandemic hit, along with a realization of this stark reality.

Results

  • Doubled ship completes
  • Forecasted and allocated for store and online demand
  • Balanced inventory between stores, DC, and web-depot locations for in-store and online sales

PACSUN selected approximately 100 store locations to serve as their
web-depot stores based on their geography and space. These webdepot
stores were assigned specific zip codes for online fulfillment which
antuit.ai’s Allocation solution would forecast, considering both in-store
and onilne demand, to concentrate inventory into these areas.


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