Rodolphe BerebyVP Finance & Operations, DE FURSAC

Former CFO/CDO, Adore Me

Using Magento

to Grow your

Business

Quick Intro to Adore Me

For the past 25 years, many

have tried to do this, from

major brands to startups.

They all failed to Victoria’s

Secret – We succeeded.

• New women’s intimates online ecommerce

• Superior product

• Better service

• Perfect platforms

• Inspirational brand

• Killer price

• Addressing millennial women needs

• Ranked No. 2 on the Inc. 500 list of fastest-growing companies in NYC and more than 1 M Facebook likes

Insights from Adore MeDemand planning : Order to deliver (OTD)

A Very Complex Challenge

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2014 2015

500%

274%

276%

20132012

Fast-fashion StyleDiversity

VolatileGrowth

Big DataLong lead time

StrongCompetition

Process

MassiveMinimum order

Quantity

ProductComplexity“If you want to start a brand with, say,

100 different styles, and you need to purchase 5,000 to 10,000 units of each, that’s a $10 million to $15 million investment before you’ve made any sales” Morgan Hermand, CEO Adore Me, NYT, February 2015

We Collected All Data from Magento• We have developed a visual tool in Magento to capture in real time product data :

– Past 12 mosales

– Current inventory

– Future deliveries (Purchase Orders already placednths)

Supply Chain OTD – Overview

Identification

of needs

Supplier

inquiry and

negotiation

Ongoing orders

follow up

Delivery

follow-up

• What to buy?

• When to

buy?

• How much to

buy?

• What is

available?

• What price?

• What

quantity?

• What

incoterm?

• What lead

time?

• How to

ensure

products

and delivery

infor-mation

are updated

in Magento?

• How to

follow up

the different

orders?

• How to

ensure that

Adore Me is

paying for

what they

actually

ordered?

What

2 3 4

Data

validation

1

• How to

ensure

that the

data

available

in the

system

are

accurate?

Bold: Detailed slide

Definition of Procurement Needs• Units sold

(forecast)

• Future deliveries

• Procurement needs to be delivered on that month to meet safety stock

• E.g. We will need to receive an additional 29,200 bras push-up in March 2016 to maintain safety stock

1

Top-Down Approach

Act 2015 Fcst 2016 Variance

% Cat. Sales % Cat. Sales (Abs. Value) Color Replenish New % of Total

21% 23% 2% Bras Black 18,500 - 22%

23% 21% 3% Bras Pink 20,000 6,000 30%

9% 10% 0% Bras White 6,000 - 7%

20% 18% 2% Bras Blue 18,000 - 21%

6% 7% 0% Bras Purple 2,500 - 3%

2% 3% 1% Bras Red 2,500 - 3%

4% 3% 1% Bras Yellow - - 0%

5% 7% 2% Bras Nude 9,000 - 11%

1% 1% 0% Bras Orange - - 0%

3% 3% 0% Bras Gray 3,000 - 4%

4% 4% 0% Bras Green - - 0%

0% 0% 0% Bras Brown - - 0%

2% 1% 1% Bras Print - - 0%

100% 100% 12% 79,500 6,000 100%

PROPOSED ORDERS

BRAS (REGULAR) -- Sep order for May/June showroom

Current inventory : 210

Sales last 12 months: 2.2k

Highest month: 1.0k

Open PO: 6000 (Oct)

Proposed PO: 4000

Allison

Current inventory : 263

Sales last 12 months: 3.9k

Highest month: 2.5k

Open PO: 0

Proposed PO: 7000

Mariana

FY16 (Fcst) FY15 (Act)

Total Revenue ($ '000s) 23,731 9,260

Total Sets 702,073 298,243

Bras (Regular) % of Total 39.0% 36.3%

Bras (Plus) % of Total 16.5% 10.4%

Bras (Total) % of Total 55.6% 46.7%

May/Jun/Jul

After 18 Months of Implementation

ERP’s objectives

• Facilitate the procurement

needs definition in terms of

time, quality, quantity and cost

• Highlight Magento’s

hypotheses, calculation rules

and avoid the “automatically

calculated” syndrome

• Facilitate continuous

improvement by updating a

library case of issues e.g. sold

out size, excess inventory

Integrated real time visibility

• Sales

• Inventory

• Order and Purchase order

• Costs and incoterms

• Logistics and quality check

• Receiving and payment

What Snapshot

After 18 Months of Implementation

ERP’s objectives

• Facilitate the procurement

needs definition in terms of

time, quality, quantity and cost

• Highlight Magento’s

hypotheses, calculation rules

and avoid the “automatically

calculated” syndrome

• Facilitate continuous

improvement by updating a

library case of issues e.g. sold

out size, excess inventory

Size breakdown suggestion

• Define the quantity to order

per size based on:

• Product characteristics

• Sales history

• Inventory

• Order placed

• Control, update & validation

What Snapshot

After 18 Months of Implementation

ERP’s objectives

• Facilitate the procurement

needs definition in terms of

time, quality, quantity and cost

• Highlight Magento’s

hypotheses, calculation rules

and avoid the “automatically

calculated” syndrome

• Facilitate continuous

improvement by updating a

library case of issues e.g. sold

out size, excess inventory

Communication interface

• Internal notifications

• PO status update

• External bridge with supplier

• Quantity

• Price and Incoterm

• Expected Delivery Date

What Snapshot

After 18 Months of Implementation

Strong KPI achieved

• Inventory management:

analytical and efficient! Only

4% of all units are slow

movers (i.e., didn’t sell a unit

in the past 3 months)

• 30% of sales from “Must-have”

products sold all year long and

with 5 months safety stock

level

• Millions of $ saved from better

inventory management without

damaging sales growth

Level of inventory, Month of sales estimates

3

4

5

6

7

8

9

10

Mar2013

Jun2013

Sept2013

Dec2013

Mar2014

July2014

Sept2014

Dec2014

Mar2015

205k

XX # of sets

Target for 2015

266k 338k173k 233k 327k216k 204k

Next steps

Fit to De Fursac

Quick Intro to DE FURSAC

• Luxury formal and casual chic “French elegance” for men clothing

• 39 stores and corners

• 2 digit YoY sales growth since 2012

• Recent successful launches of knitwear, shoes and more to come…

• Ecommerce sales quickly growing since 2012

• A corner recently opened in Switzerland and more store openings in Belgium, Switzerland, UK… to come soon

Fit To DE FURSAC

• Use Magento to develop cross channel sales :

– Build data analytics visual tools

– Implement a new procurement process

Shorter lead

time

2 collections

a year Vs

every month

“Slower”

growth

40 POS and

an online

store

Thank You!!!

Q&ARODOLPHE BEREBY

Email : rbereby@defursac.fr

My Background

• A Science and Finance background : – Graduated from Mines de Paris, top-3 French engineering school (Master of Science)

– 8-yrs experience at Ernst & Young and L’Oreal

– Gained skills in financial planning & analysis, internal controls…

• And a strong appetite for big data, online economics, supply chain and entrepreneurship :

– 3-yrs experience as Chief Finance and Data Officer (CFO & CDO) of Adore Me in New York in charge of Finance, HR, Demand planning, Customer segmentation, lifetime value & other customer analysis

– Joined in 2012 at an early stage and helped the business to grow by 150% every year while managing cash, inventory and implementing “lean” procurement process

– Drove inventory level from 12 to 4 months of future sales while keeping steady growth and high level of product availability

– Frequent use of Magento as tool to prepare products & customers analysis to hack growth with smart inventory management

– Recently joined De Fursac as Vice President of Finance & Operations in charge of Finance, HR, Logistics, Production and Data analytics