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Panache Lingerie


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									Panache Lingerie

                                         Panache Lingerie Boosts Assets with Indigo
                                          “Productivity is now much higher and our logistics costs are set to come in 15%
                                         under budget for the year 2009/2010. Ultimately we’re now able to handle 20%
                                         more volume with 18% less staff.”

                                                adding further complexity to warehouse
Panache Lingerie is a privately owned
manufacturer of lingerie and swimwear,          operations.
specialising in the D plus market.
Founded in 1982, Panache has enjoyed            In March 2009, Panache launched a
an increased turnover growth over the           business review in order to ensure that
last few years, employs 120 people,             warehouse operations were running at
and has offices in the UK, New York,            maximum efficiency, and supporting
Hong-Kong and Germany. Based in                 high customer service levels. The
Sheffield, Panache operates from a              conclusions of this review identified a
36,000 square foot warehouse and                number of business challenges.
exports to 37 countries across the
world.                                           Panache found that some orders were
                                                not being despatched on time, and
Its customers include John Lewis, Next,         upon receipt, were inaccurate.
, BHS, Bravissimo, Debenhams
Littlewoods and ASOS.                           This resulted in customer complaints
                                                and an On Time In Full (OTIF)
The business owns five brands,                  performance that fell short of Panache’s
Panache Superbra, Cleo by Panache,              high standard.
Masquerade Lingerie, Panache Atlantis
(for cup sizes A-DD) and Panache                The review also found that productivity
Swimwear.                                       and efficiency was low, with logistics
                                                costs running over budget.                        “There is no doubt that
Core to Panache’s success is its                                                                  the company is seeing
reputation for fit, quality and value for                                                         huge improvements”
                                                Nick Fournier, Head of Logistics,
money, and its philosophy is to                 Panache Lingerie comments                         Nick Fournier Head of
continually improve product lines, as                                                             Logistics for Panache
well as sourcing and manufacturing                                                                Lingerie
                                                “Some of the Panache export orders
practices. Panache’s warehousing
                                                are picked and packed, but can then sit
operations are complex as each
                                                in the despatch part of the warehouse
product is available in up to 120
                                                for several weeks awaiting payment
different sizes, resulting in a staggering
                                                from suppliers; on occasions, some
8,000 SKUs. Products are individually
                                                packed goods were getting misplaced
picked and then pre-retailed with
                                                during this time period as storage of
hangers, swing tickets and size cubes
                                                work in progress was
not system controlled, while we had         solution, Version 9, complete with          traceability of where, when and by
visibility of stock in our main             Marshalling and Perpetual Inventory         whom stock was picked and packed.
warehouse, stock disappeared off our        modules.
radar once it was picked.                                                               “One of the biggest changes is our
                                            Panache chose Indigo’s solution             marshalling process as we now have
This lack of visibility meant that          based on an existing relationship with      two-step marshalling,” comments Nick
providing customers with information        the software specialist, proven             Fournier. “Upon receipt of an order, a
on their orders was a very manual           capabilities of the solution and the fact   product is picked along with the
process, which inevitably impacted          that the modules were aligned               relevant size label, hanger and tissue,
our service levels.                         perfectly with the challenges Panache       and sent to be packed. Then, having
                                            faced. In particular Panache was            been packed, it is scanned again in
Resourcing the warehouse                    impressed with Indigo’s flexible            despatch. This means that we know
appropriately was also difficult as we      approach to creating a solution which       the exact status and location of all of
had limited visibility of workload within   would support the warehouse’s new           our stock at any one time, we can
picking, packing and despatch. We           marshalling process.                        update customers on their order
also had to cover an annual stock                                                       status, and adjust resources
take which was expensive and                Panache went live with Indigo               accordingly.
resulted in the warehouse being             RealTime for System21 Aurora
closed down for a whole week. This          Interactive Warehousing Version 9           “Indigo’s consultancy was particularly
only exacerbated some of the                with Marshalling and Perpetual              valuable in this area as they helped
customer service and order fulfilment       Inventory in March 2010, for 30 users.      us to change the marshalling process,
problems we’d been subject to, and                                                      and configured their solution to fit our
was therefore not sustainable.”             “The project was excellent, being           business requirements, rather than us
                                            delivered with very few issues and to       having to adapt our business
Following the outcome of the                budget,” comments Nick Fournier.            processes to fit the solution.
business review, Panache                    “The implementation was planned
commenced a new initiative focused          well, with all modifications factored in    “Our inventory has also seen vast
on developing people, processes and         at the outset, so there were no             improvements. Through using
technology, to achieve operational          surprises along the way.                    Perpetual Inventory we plan to
excellence in its warehouse.                                                            relinquish our annual stock take,” Nick
                                            Indigo not only ensured that the            continues. Accurate inventory is
Panache was already using a                 implementation was seamless, and            pivotal in helping us to understand the
warehousing solution from Indigo            integrated the solution with our            root cause of issues and ensuring
Software, which supported its core          existing Infor ERP System21 Aurora          fewer stock inaccuracies. However,
warehousing processes effectively.          enterprise resource planning                doing an audit annually just wasn’t
However the lingerie manufacturer’s         software, but also provided advice on       sufficient to create a live picture of the
drive for operational excellence meant      how we could improve our processes          warehouse. Now, the software
that it required greater functionality in   further to achieve industry best            manages inventory in a real-time
order to support new processes and          practice.”                                  ongoing way, resulting in major cost
ensure greater levels of productivity,                                                  savings for the business.”
efficiency and service in all areas of      Just a few months after going live,
the warehouse.                              Panache is already benefitting from         “The Indigo solution has provided
                                            greater visibility of orders, faster        Panache with extra visibility and
In order to achieve its new objectives,
                                            turnaround of orders, improved              accuracy in order for them to manage
Panache decided to upgrade to
                                            customer satisfaction and full              and grow the business,” comments
Indigo’s RealTime for System21
                                                                                        Catherine Thornley, Lead Consultant
Aurora Interactive Warehousing
at Indigo. “The team's commitment to      enhanced customer satisfaction, there
the project was second to none, and       is no doubt that the company is
great organisational skills meant the     seeing huge improvements.
project ran like clockwork. Defining
operational problems, consultation        “We are on a continuous journey for
with the users, and thorough testing      improvement and are currently
ensured a successful implementation       looking at how we can improve our
and a seamless project.”                  inbound processes, so that when
                                          stock is pre-labelled at the supplier,
Indigo Interactive Warehousing runs       we can scan on receipt at the pallet
on an IBM System iSeries and 30           level.
hand-held barcode readers from
Intermec.                                 “Indigo’s consultancy and software
                                          continues to be a core element of our
“Through using hand-held scanning         drive for operational excellence in
devices, we have eliminated stock         warehousing, and we are looking
accuracy problems entirely. Some          forward to working together in the
products look very similar so the         future as Panache continues to
wrong products were sometimes             enhance its operations further.”
despatched as a result of manual
error. Now the barcode readers
remove any scope for manual error         .
and provide us with 100% visibility of
our stock position.”

In just 12 months, Panache’s drive for
operational excellence in warehousing
has delivered major business
benefits. Inventory is now 99.85%
and OTIF has increased to 97% plus.
Despatch lead times have reduced
and customer complaints have

“Productivity is now much higher and
our logistics costs are set to come in
15% under budget for the year
2009/2010. Ultimately we’re now able
to handle 20% more volume with 18%
less staff.”

 “We expect to see full return on our
software investment within just three
years,” Nick concludes. “And while it
is difficult to measure benefits to our
brand and reputation as a result of

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