EwatchFactory uses FINS to become the largest e-commerce distributor of licensed watches for kids in USA.
Created in 1999, EwatchFactory is a distributor with a focus on designing and fulfilling licensed and branded watches for the US and Canadian markets. EwatchFactory distributes products to the top USA E-tailers such as Amazon, Macy’s, Wal-Mart, Target, Kohls, QVC, JCPenney and more. Their licensed watch assortment includes Disney, Marvel, WB, Red Balloon, Sesame Street, Animal Planet, Discovery Channel, Sharkweek and more.
The challenge for EwatchFactory was managing thousands of separate SKUs across a wide range of licensed products while maintaining fast production and delivery. EwatchFactory must maintain different catalog assortments for different retailers with differing needs, as well offer special custom orders made online by end users for key licenses such as Disney and Marvel.
Like all clients, their business needs are unique and they needed a customized ordering and inventory system that covers their supply chain from source to end user for both B2B and B2C customers.
In order to handle the complexity of the EwatchFactory supply chain, Montrichard did a full FINS (Lean Manufacturing System for the Watch Industry) integration. The solution begins with inventory management. Having thousands of SKUs and a huge amount of choices is a key component of EwatchFactory’s success but without careful inventory control the costs would make it impossible.
As the Swiss watch industry has learned over the past few years, having completed watches sitting in inventory kills cash flow and forecasting sales in the ever-changing luxury marketplace is extremely difficult. Successful companies such as EwatchFactory must remain fast and flexible while still offering wide choices and short lead times. Adopting a Just-In-Time manufacturing system utilizing FINS solved this problem.
Minimal Inventory Stock
Using FINS, EwatchFactory optimizes inventory management along with careful component standardization to maintain a very low inventory value while still offering a very large quantity of SKUs. By stocking only the immediately necessary components at their facility and only producing what is needed, EwatchFactory can conduct a successful large-scale USA e-commerce business with less than 10% of yearly turnover invested in inventory, thereby freeing up valuable cash flow for operations and minimizing warehouse and factory space requirements.
Designed for speed, flexibility and cost-savings, orders from EwatchFactory’s key USA retailers automatically trigger Just-In-Time production orders that can be made and delivered from their overseas factory in less than one week.
Web-based B2B management
FINS makes it easy for EwatchFactory to manage their entire supply chain, catalogs, and orders directly online with a convenient web-based portal. FINS is easily accessible from anywhere as long as there is an internet connection. To further reduce costs, it doesn’t require the installation of any additional software or programs on the client side. Using the online portal, EwatchFactory can place and monitor orders, manage inventory, create and manage new SKUs and maintain different product catalogs for each of their many retailers.
The system includes full traceability of production batches or even single units which is a great benefit for companies with multiple distribution networks and retailers. With FINS, EwatchFactory can pinpoint where each individual order is in the supply chain from inventory to retail display.
Online B2C Merchandising
As a key supplier to Disney, EwatchFactory needed a way to streamline their B2C offerings to their fans. Working with Montrichard, the FINS solution was integrated directly on Disney’s online shop allowing customers to order customized watches online. Once selected the FINS system generates a Just-In-Time order for the factory and production begins immediately.
By eliminating steps in the ordering and delivery process with the first “create your own watch” solution in the industry, Disney customers can select and personalize their watch with a huge number of customizations and receive their personalized products within 14 days of placing their order.
Results of adopting FINS
Using Just-In-Time manufacturing and lean inventory management powered by FINS, integrated withEwatchFactory’s existing ERP, they are able to offer unlimited assortments, unique catalogs segmented by individual E-tailer and can deliver completed watches faster than their competitors.
Add to this, operating at a 50% lower inventory value than other competitors in the industry and the labor & time savings made possible by the FINS web-based system allows EwatchFactory stay one step ahead of the competition by running leaner, faster and more profitably.
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