The encyclopedia · Product & Design · Operational decision · 2012–2017
Kolon Sport packed assortments by store demand, up 8% seasonal sales
KAIST's assort-packing and distribution model balanced how much of each SKU each store got, adding 8% to fall/winter sales.
Kolon Sport
the move
Kolon Sport's large seasonal assortment and many stores made it hard to pack boxes so each store got the right mix.
KAIST and Kolon Analytics modeled assort-packing and distribution to allocate the right amount to each store, and validated it with simulation and on-store pilots.
The method tracked the strong correlation between distribution amount and store inventory level, which the prior method missed.
why it works
- It allocates by per-store demand, not total season volume.
- Simulation and pilots validate the distribution before rollout.
- It corrects the mismatch between distribution and inventory level.
- Fall/winter 2015 sales rose 8% from the change.
what transfers
In a short selling season, the winning move is to distribute by measured store demand, not by total season volume.
what came after
The solution was validated by sales simulation and on-site pilots and implemented into Kolon Sport's internal system, contributing to an 8% increase in sales in the fall and winter seasons of 2015.
references
- Business Analytics for Streamlined Assort Packing and Distribution of Fashion Goods at Kolon Sport
- Optimization of inventory distribution in fashion retail supply chain
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