From its start in 1941, the company’s brand has represented authenticity, innovation, and relevance to its customer’s everyday lives. The high-end products range from handbags, wallets, and other accessories. In 2013, the brand expanded into apparel and footwear, simultaneously shifting its outsourced sourcing operation in-house at that time.
Today, its heavily-branded products are available on five continents in over 1,000 directly-operated stores worldwide and many more under agreements with global wholesale and distributor partners. A recent competitor company acquisition is positioning the company for more growth and expansion.
During a period when the company was in the process of diversifying its China-centric sourcing base to other Asian countries (Vietnam, Thailand, Philippines, India, and Korea, etc.), its leadership set objectives to meet growth targets while containing costs and reducing risk. Amber Road was selected to address both of those objectives.
During the multiple phases of implementing Amber Road modules for each area of functionality, one key business value came into focus - reducing material liabilities. This company typically incurred up to $17 million per year in material liabilities with its suppliers. To address this substantial cost, it was critical to implement a material management program that enabled internal and external teams to have visibility into the processes involved, key to managing material commitments and usage.
Amber Road’s solution enabled the company to centralize and automate their material management processes. The solution facilitates an efficient means to collaborate with Tier One and Tier Two suppliers and provides visibility into the capacity, demand, allocation and consumption processes. Using existing data integrated from their ERP and PDM systems, they could identify the amount of raw material needed and consumed. In turn, this resolves the disparities before a financial commitment is made to raw material suppliers by finished goods manufacturers, thus making the brand liable to the manufacturer.
With the Amber Road platform, each of these functional processes are made available in the cloud-based solution:
Amber Road’s solution streamlined and improved collaboration among the brand, raw material suppliers and finished goods manufacturers in areas of raw materials development, planning and management.