Managing a supply chain with SaaS technology

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In the past five years UK fashion chain New Look has seen its store numbers grow to more than 1,000 and has expanded into over 20 countries including several franchise operations. Managing an efficient supply chain to handle such growth has been helped by the use of software as a service (SaaS) technology and some technology from ediTRACK.

When it comes to 'fast fashion' New Look is one of the UK's leaders rapidly turning around production of the latest styles to maintain its appeal not just to British shoppers, but to growing numbers in more than 20 countries worldwide.

With global suppliers and worldwide distribution needs, achieving end-to-end visibility of its supply chain has played a vital role in the company's growth plans. It has been able to dramatically increase the numbers of purchase orders it handles each week, the numbers of stores it services, and the number of distribution hubs it can manage without the need for disruptive IT changes or significant increases in back-office head count.

Working with ediTRACK since 2005
An important factor in the company's supply chain model was its decision, back in 2005, to opt for ediTRACK's SaaS technology which provided a solid platform for future growth. While the initial applications were focused on streamlining relationships with freight forwarders and improving supplier compliance, a succession of releases since then have not only ensured visibility through the supply chain but helped enable future growth.

Maxine Walter, supply chain coordination manager, New Look, commented, "Now our buyers can exchange photographs with suppliers and have a real-time dialogue as they develop styles, while buyers out in the Far East can send detailed and accurate information back to their teams in the UK. The software has certainly cut lead times and reduced errors."

"Because it includes an event-based tracking tool there is an action list based on the agreed critical path so we reduce slippage and have the merchandise where we want it when it is needed."

Streamlining product selection to maximise sales
'Fast fashion' demands reducing lead times to a minimum as well as the flexibility to move hot styles to the right markets to maximise sales.

Key to this has been the 'sales approval process' module which allows New Look's trading partners access to a common platform containing all the necessary pre-delivery information.

Buyers in the UK and producers in the Far East can share information about designs, fabrics and delivery schedules electronically in real time while the system ensures that the latest information is always available to everyone involved.

New booking diary for instant visibility of merchandise
One of the latest system upgrades has involved the creation of a 'booking diary' which monitors inbound stock movements from factory to freight forwarder to warehouse to delivery truck and store so that everyone involved knows exactly which merchandise is expected where at any given time.

Benefits to New Look of using SaaS
A key benefit of managing systems on a SaaS basis is that everything is hosted by ediTRACK and sits outside New Look's firewall. As a great many people are accessing this information all the time ediTRACK ensure its constant availability.

That platform is also easily expandable to match New Look's growing business. When the company first started working with ediTRACK five years ago its stores were almost entirely based in the UK and it was handling around 700 purchase orders a week through the system. Today that number is closer to 2,000 and the stores are global, but there has been no need for major increase in back office staffing levels to process the additional business.

Dan Monaghan, head of supply chain operations, New Look, commented, "We took the decision to develop a number of distribution hubs in July 2008, and they were up and running by September that year because we didn't need to make any major system changes it was all handled within the ediTRACK platform. This gives us complete visibility into the distribution centres which helps trading decisions as to whether we should switch supplies from sea to air or re-route to one or other of the hubs.

"If in future we need more distribution hubs to handle additional franchises then the system can scale up to meet demand."

The scalability which ediTRACK delivers is key for future planning. New Look signed its first franchisee in Dubai in 2006 and today it has a growing number of trading partners across the Middle East, Russia, Malta, Poland and Singapore as well as company-run stores in France, Belgium and Ireland.

Cost effectively providing 'one version of the truth'
For New Look, SaaS has provided a cost-effective and scalable model that has allowed the company to grow without the need for constant investment in larger in-house IT capability.

Ruth Gurney, New Look's IT applications services manager, said, "We're a global business so operate across several time zones, but ediTRACK maintains the system 24/7 so it is easy. The costs of SaaS are far more predictable than having to manage your own applications and hardware resources."

Importantly that growth has been achieved without the constant need for additional back office staffing resource and by providing an accessible platform for all its trading partners to share information on product development and delivery. It has ensured 'one version of the truth' and a significant reduction in errors.