TRANSFORMING THE SUPPLY CHAIN FOR MICROSOFT DEVICES
Microsoft Devices is a global manufacturer and distributor of computer devices, accessories, interactive gaming hardware and software. Microsoft sell their consumer products to over 500 retailers globally via a complex web of 1st and 3rd party distribution networks across the USA, EMEA, Canada, Latin America and the Asia Pacific region.
AT A GLANCE
Shelf Availability Improvement
Weeks of Supply Reduction
Aged Inventory Improvement
The sheer number of distribution points and retail partners in this global network presented many challenges, including aggregating retailer data to forecast consumer demand. Accurate demand and supply chain planning is essential for optimizing the flow of inventory from factory to consumer to maximise shelf availability and ultimately increase sales.
Microsoft also had limited visibility to their retail partners’ sales and inventory data, and the data they did have was siloed due to non-standardized formats and timelines. This lack of retailer data visibility on a timely basis led to an operationally inefficient approach to predicting consumer demand.
V Net centralized data across 1st party retailer sales and 3rd party OEM sales. The data is pivotal to an AI driven supply chain planning platform used for the purposes of optimizing sales to the consumer without excess inventory within the supply chain. V Net introduced essential capabilities including aggregation of retailer data, co-managed inventory, collaboration, and a global control tower to both sales and supply chain teams at Microsoft.
Key benefits included sales increase, reduction in weeks of supply, reduction in markdown exposure, and productivity improvements. Microsoft embraced the V Net solution, with the outcome being development of high-quality consumer demand data residing in 1 platform to enable the efficient flow of inventory from factory to consumer.
We traded through the Christmas period with unprecedented operational efficiencies in managing our stock flow through this high-volume trading period. The introduction of V Net across our entire suite of products contributed significantly to JB Hi Fi hitting our very ambitious in-stock position, stock turn and weeks cover targets. The financial outcome being a contribution by V Net in helping achieve our sales and working capital targets.”