E1 Entertainment Implements Datalliance Vendor Managed Inventory as Foundation for New Business Model
CINCINNATI, OH--(Marketwire - February 12, 2010) - Datalliance today announced that E1
Entertainment Ltd. has implemented Datalliance Vendor Managed Inventory as the
foundation for their new business model. E1 Entertainment is a leading
international independent entertainment business operating in Canada, the
UK, Holland, Belgium and the United States. The company is the largest
wholesaler of DVDs, CDs and video games in Canada and is the largest
independent music and video distributor in North America. The complete
case study article can be viewed at
www.datalliance.com/successstories.html.
Debby MacFarlane, Director of Process Development, recalled E1
Entertainment's motivation for exploring a new business model. "We wanted
to improve the way we do business. We were looking for ways to increase
sales volume through expanded retail distribution channels. In order to be
more attractive to a broad base of retailers, we needed a more cost
effective business model. We knew that if we could make it easier for
retailers to do business with us and reduce their costs, it would be a
win-win situation."
E1 Entertainment determined that a Vendor Managed Inventory
program would benefit them and their retailer partners. MacFarlane
explained, "With VMI we take responsibility for inventory replenishment.
We determine what we ship the store, and we replenish inventory based on
actual consumer demand down to individual SKU's and store locations."
E1 Entertainment researched multiple technology options and selected the
Datalliance VMI service as the core platform to support their new VMI
business model. "Using Datalliance, we now have ready access to store
level information to make better decisions about order quantities and
replenishment orders," said MacFarlane. "On a weekly basis, we drill down,
store-by-store, item-by-item, to analyze consumer demand for the previous
week -- resulting in timely and accurate replenishment orders. This
detailed analysis has resulted in significant sales increases for E1
Entertainment and our retailers. Because we have the right product at the
right retail location, at the right time, we don't lose sales
opportunities."
"Before using Datalliance, our analysts spent countless hours of manual
work painstakingly trying to figure out the details of retail replenishment
orders. Now, Datalliance calculates the replenishment orders, and our time
has been reduced by 75%. For retailers, the benefit is that re-orders are
not only much more accurate, but their purchasing department doesn't need
to get involved. That saves them considerable time and effort. We've
streamlined the process, made it much more accurate, with a significant
reduction in effort -- a pretty good result by any standard."
Because E1 Entertainment can analyze product demand at an individual store
level based on customer demand every week, their retail partners' stockout
scenarios are drastically reduced. "We're providing better customer
service to our retailers and they in turn are providing better service to
their consumers," described MacFarlane. "With a better handle on retailer
demand, we can manage and therefore minimize our overall inventory across
retail locations. This is really the key for us. We're increasing sales but
doing so with a significantly lower investment in inventory. Improving the
efficiency of the supply chain lowers inventory costs, increases margins
and ultimately improves profits."
About Datalliance
Datalliance is a leading provider of collaborative commerce services, and
the world's largest independent VMI service provider. Delivered via the
Internet using the 'Software as a Service' (SaaS) model, Datalliance
solutions make it easy for suppliers and their customers to establish sales
and inventory management relationships that fully align business
objectives, improve collaboration, and streamline supply chain operations.
Datalliance manages billions of dollars in orders, millions of SKUs, and
thousands of locations for leading Fortune 1000 companies in a number of
industries. For more information about Datalliance, visit
www.datalliance.com.
Contact Information: Contact:
Brian Lindner
Datalliance
513-791-7272