With the goal of removing inefficiencies from its supply chain and bringing products from its many different branded companies to market quicker, Pacific Brands implemented i2 solutions to increase global visibility and on-time delivery, and to reduce working capital.

In today’s harsh economy, companies in the soft goods and apparel industry, face the demand to have an efficient supply chain to provide value to its customers. However, this is increasingly difficult when a company manages multiple supply chains within the business.

Pacific Brands was facing this challenge, and realized that it needed to streamline the company’s supply chain processes to maximize customer value.

“If you look at Pacific Brands as an organization, it was made up of a number of different branded companies, which, historically, have very much acted independently,” said John Guiffrida, Pacific Brands’ General Manager, Supply Chain Management. “We needed to use scale to our advantage.”

Pacific Brands recognized that, from a back-end perspective, it needed to drive inefficiencies out of its supply chain and bring products to market quicker.

Integrating Supply Chain Processes at Pacific Brands

i 2 C U S T O M E R S U C C E S S S T O R Y

Challenges

• Reduce working capital

• Shorten the forecasting process

• Bring products to market quicker

Solutions

• Integrate supply chain processes

• Operate from a new business platform

• Evolve from monthly forecasting to weekly forecasting

Results

• Reduced working capital

• Increased global visibility

• Increased on-time delivery

Company Description

Pacific Brands, headquartered in Richmond, Victoria, is

a key provider of soft goods to major retailers in Australia.

The company manages 1,300 retail outlets and 151 manufacturing

facilities, and employs more than 40,000 employees worldwide.

Pacific Brands has installations and/or offices around the

globe, including the Americas, Asia, and New Zealand.

Sales revenue for Pacific Brands totals US$1.4 billion.

Why i2?After executives decided that they needed to embark on a supply chain initiative, Pacific Brands chose to implement solutions from the i2 Supply Chain Management™ suite.

By applying leading technologies and sound business principles, i2’s solutions optimize operations across the enterprise, enable collaborative commerce across the supply chain, and deliver on the promise of e-business across all industries. The Supply Chain Management suite includes the solutions, content, and platform required for companies to improve their operational efficiencies and participate in online marketplaces.

“i2 was chosen as our strategic partner due to the depth of its experience in the industry verticals that we operate in— soft clothing and apparel,” Guiffrida said. “i2 was also chosen due to the breadth of product across the supply chain, which we needed since we have multiple supply chains within our businesses.

We needed a partner that could provide us with products across that supply chain and a new business platform as we moved forward.”

“Through the application, i2 is now sitting

above the legacy ERP systems. Hence,

we have the ability to have all the information for all of our categories in one location, as opposed to having it in separate

locations as part of our divisions.

So that provides us with visibility

that, until recently, we just did

not have. It’s all about having better information that can enable us to make better decisions.”

—John Guiffrida General Manager

Supply Chain Management

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i2’s ContributionPacific Brands’ first business release incorporated i2 Demand Planner™ and i2 Supply Chain Planner™ in its clothing group. In the second business release, Pacific Brands will implement i2 Factory Planner™ and i2 Factory Scheduler™ in order to manage its working requirement at the factory level.

“If you look at our demand planning solution, we expect to use that in a monthly forecasting process where, in the beginning of the month, we create an unconstrained forecast,” Guiffrida said. “We will then go through a sales and operation planning process, determine what supply chain meets against the forecast, and then look at a plan around the middle of the month.”

That constrained sales plan will then be converted into an operational plan each week by the back-end supply chain team.

“That’s quite different from what we do today,” Guiffrida said. “Today we’re running a monthly environment, so our ability to respond to the market and the changing demands within the market is quite restrictive. Going forward, we expect to be able to respond based on point-of-sale information.”

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“i2 was chosen as our strategic partner due to the depth of its experience in the industry verticals that we operate in—soft clothing

and apparel,” Guiffrida said. “i2 was also chosen due to the breadth of product across

the supply chain, which we needed since we have multiple supply chains within our

businesses. We needed a partner that could provide us with products across that

supply chain and a new business platform as we moved forward.”

Pacific Brands’ ResultsAlthough i2 solutions have not been in place at Pacific Brands for long, the company anticipates that the implementation will have a significant impact on its forecasting capabilities. This kind of responsiveness will allow Pacific Brands to achieve continued value by further improving supply chain processes.

“The value that we are looking to derive has a number of facets,” Guiffrida said. “Obviously one of the key drivers is to improve our on-time delivery to our customers, to improve the responsiveness in which we can operate. And that results in having the right inventory at the right place, at the right time, which is in our working capital reduction targets and also in our manufacturing efficiency improvements that we expect to gain from this initiative.”

Pacific Brands also anticipates deriving value from the replacement of its enterprise resource planning (ERP) systems with i2 solutions. Before the i2 implementation, some of the individual brands acted in an independent manner with their own legacy systems. That limited Pacific Brands’ ability to collaborate both within the enterprise and with its business partners.

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“Through the application, i2 is now sitting above the legacy ERP systems. Hence, we have the ability to have all the information for all of our categories in one location, as opposed to having it in separate locations as part of our divisions,” Guiffrida said. “So that provides us with visibility that, until recently, we just did not have. It’s all about having better information that can enable us to make better decisions.”