Recently, we had the pleasure of meeting with Jim Herbert to discuss about how he uses FINS, Montrichard’s Just-In-Time supply chain management software. Jim is currently president of EwatchFactory, and we’ve focused on his relationship with Disney as a licensed producer and wholesaler. Jim has been in the jewelry and accessory business for over 30 years and has run 2 watch businesses in his previous time.
Montrichard: Can you briefly explain Ewatch Factory’s relationship to Disney?
Jim: For more than 10 years, EwatchFactory (EWF) has enjoyed a partnership with Disney as a producer and wholesaler of Adult and Children’s character watches. These where intended for various Ecommerce websites in the US and Canada such as Amazon, Kohls, Walmart, Target, JCPenney.
Montrichard: Why did you come to implement FINS on Disney and what has it allowed you to achieve?
Jim: FINS was a must for EWF. This was the only way we could offer the breadth and depth of a large Disney assortment to our clients without running into cashflow and inventory problems.
We’re able to offer our clients 1200 watch styles without sinking cash into unused inventory. Currently, we are able to rely on only a 4-week inventory to satisfy our clients’ needs bringing down the cost of having so many styles.
Montrichard: Have you changed the way you manage EWF’s Disney collections in order to leverage FINS’ Just-In-Time supply chain?
Jim: Today, we’ve had to learn to manage components and not assembled watches.
FINS allows us to use a “shared” component inventory. This means that we can continuously expand our offering compared to our competitors while avoiding large MOQs. Furthermore, we’re able to discontinue any ineffective styles without too much waste.
Furthermore, in order for us to maintain low inventory, we’ve had to review how we perform our forecasts. With FINS we combine the client selling history by month and by SKU and take into account new Disney content. The precision in these forecasts is key because the smaller the margin of error, the less risk of over or under stocking watches.
Montrichard: If you compare with a traditional OEM supply chain, do you think FINS offers benefits?
Jim: The benefit of FINS for us rests in its capacity to offer a large product selection while maintaining a small inventory of components. Overall, we’ve improved both cash flow and flexibility while expanding our assortments.
Additionally, FINS allows us to sell all the characters in the Disney Art guides without worry of getting stuck with inventory. Traditional OEM companies have to commit to 100-1000 pieces per watch style which quickly becomes cost prohibitive.
Montrichard: Do you think the same success is possible without FINS?
Jim: EWF would not and could not exist today without FINS nor could it have continued to grow year after year without it. Being able to maintain a 4-week inventory over 1200 different models means that our cash is not stuck in dead stock. This is in of itself a success that can partly be attributed to FINS.
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