DFS Group · LVMH June 2018 – April 2020

Eliminated warehouse: $1.9M saved, listed 5× the eCommerce catalogue

Role
Senior Portfolio Manager
Team
24 person cross-functional
Budget
$3M+ per year program
Inventory cost savings
$1.9M
9 stores
Product catalog rolled-out to 9 global markets
5×
Catalog expansion — 3,000 to 15,000 items via PIM integration
10%
Reduction in out-of-stock products following the fulfillment transition

Travel retail website model was to order online and pickup at the three in-town stores in Hong Kong. (Home delivery not allowed by brands.) Ecommerce Ops team online inventory limited by dedicated warehouse space. Why not get rid of the warehouse and fulfill catalog from stores?

My impact: Led a three-month accelerated initiative to transition from warehouse to in-store and cross-store fulfillment. This reduced out-of-stock products by 10%, saved $1.9M on inventory, and enabled expansion of the product catalog from 3,000 to 15,000 items across 9 global markets.

Learnings: Rethinking fundamental operations (using stores as warehouses). Just because other eCommerce sectors use warehouses doesn’t mean that travel retail should.

eCommerce Retail Omnichannel LVMH

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