Industry Vertical: Retail
The convergence of media, entertainment and technology is driving continuous innovation and business model changes in related industries. Providers of content and services are continually transforming their value-proposition to ensure ongoing competitiveness.
Our client is one of the world’s leading providers of in-home movie and game entertainment worldwide. The client’s initial business model emphasized renting movies. The company has expanded its offerings, to also include sales of both new and used movies. The change in the business model requires the company to optimize and realign its back-end operational infrastructure, especially the one that supports DVD aggregation, warehousing and distribution. Working with the senior IT team, our Specialized IT Solutions Group developed a Business Operations model and a SAS Operations model to achieve order-of-magnitude improvements in our client’s ability to rapidly aggregate and redeploy inventory in response to anticipated demand. When implemented, this will minimize unallocated inventory and end-to-end cycle times while maximizing inventory visibility and business profits.
Our client is one of the world’s leading providers of in-home movie and game entertainment with more than $5 billion in annual worldwide revenues and more than 8,500 stores throughout the Americas, Europe, Asia and Australia. The company rents more than 1 billion videos, DVDs, and video games at its Video outlets each year. It also operates an online business and has marketing partnerships with companies such as Time Warner and DIRECTV.
Our Client’s Need
The current SAS solution used by the client supports its legacy business model wherein pre-planned allocations drive the distribution of material to various points-of-sale. The new business model requires an ‘on-demand’ emphasis, one that rapidly matches anticipated demand with available inventory, often situated in up to 5000 locations. Once located, the inventory needs to be routed to its new destination, using available warehousing and distribution infrastructure. A new Business Operations Model was required.
Additionally, the existing SAS solution implementation supported real-time processing of a limited number of SKU’s overnight. With the change to the business model, the computational model needed to be able to support several thousand SKU’s in a few hours. This required a new SAS Operations Research Solution.
How InfoVision Helped
Working closely with our client’s team, InfoVision developed a Business Operations Research (BOR) model to support the new business model. Our BOR model accommodated the client’s new and emerging requirements related to inventory pull, push, warehousing and distribution in support of its new business model.
Additionally, we developed a new SAS Operations Research (SOR) model. The new SOR model would leverage the existing SAS deployment and extend it by integrating additional computational elements and steps process. This would result in increase in (a) the number of SKU’s supported and (b) the number of points-of-sale supported while (c) reducing the overall processing time by about 2000%.
Finally, InfoVision developed a proof-of-concept to support our recommended solution.
InfoVision’s work has helped our client develop a workable solution to
(a) More rapidly respond to product demand
(b) Leverage current technology and logistics investments and
(c) Maximize its competitiveness.