Hat World reaps the online benefits of better inventory management
A newly revamped and integrated inventory management program is helping Hat World Corp., an operating segment of Geneso Inc., achieve better e-commerce and multi-channel sales.
Before streamlining its inventory management program, Hat World, No. 290 in the Internet Retailer Top 400 Guide to Retail Web Sites, maintained its e-commerce inventory as a separate set-up.
As a result, Hat World would receive inventory into its main warehouse, unpack the new merchandise, put it into bins and then repeat the process if the inventory was earmarked for the Internet. “SKUs designated for the web had to be recounted, logged, unpacked and once more put into bins,” says Karen Weber, director of e-commerce. “Our online inventory is in real-time so as we ran out of product it was two to four days to get it replenished. While that was happening we were out of stock online.”
But today, after several months of streamlining warehouse and inventory management operations, Hat World is able to keep better track of merchandise, more closely track product levels and instigate faster replenishment. “We’ve replaced redundant Internet inventory shipping and receiving operations with simplified inventory transfer activities,” Weber says. “We’ve increased SKU storage capacity by between 20% and 30%, increased the exposure of Internet orders to existing merchandising systems and developed storage replenishment processes to maintain adequate inventory levels.”
The result of the revamped inventory management program is better multi-channel integration and more cross-selling opportunities. E-commerce managers and store managers now have access to the same inventory data, including what items are in stock in various stores and online. The number of units Hat World now carries on the web has also grown from several hundred thousand to more than 1 million items. If an item is out-of-stock or not carried in a store, store managers can use the web to help the customer place a web order. When the merchandise has been shipped, the customer can pick up the hat or cap in the store or have it sent directly to home or office.
Hat World operates over 615 stores in the U.S., Canada and Puerto Rico.
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