Levi Strauss & Co. (LS&Co.) has adopted a new strategy for fabric sourcing for its iconic denim products. The company has entered into a partnership with o9 Solutions, a leading provider of AI-powered supply chain planning and analytics solutions, to develop an advanced enterprise planning system. This system enables LS&Co. to efficiently and promptly allocate orders, resulting in a significant reduction in lead times.
The collaboration with o9 Solutions has allowed LS&Co.’s IT team to create a state-of-the-art data infrastructure that offers real-time visibility into the company’s global supply chain. This system, known as an open marketplace, provides a live view of LS&Co.’s supply chain, allowing the company to quickly determine which suppliers have the required materials in stock for the production of their signature tops and bottoms. Furthermore, it facilitates virtual real-time communication among all parties regarding current raw material requirements.
This innovative technology empowers LS&Co. to match supply with demand in real time, even down to the component level. It also provides access to information about previously purchased fabrics from past seasons, streamlining the material reordering process. By enhancing supply chain transparency, LS&Co. has improved its entire network, resulting in enhanced processes that deliver significant cost and time benefits, as well as the ability to protect margins.
Vishal Mankotia, LS&Co.’s VP of global supply planning, highlighted the positive impact of the technology, stating that it has led to “significant reductions in liabilities of both fabric and sundries.”
The collaboration between LS&Co. and o9 Solutions has resulted in the creation and launch of three system modules—Tops/Bottoms Agility Modeling, Raw Materials Planning, and Material Requirement Planning (MRP)-driven Agility. Looking ahead, five additional modules are planned for development and release later this year and in early 2025.
Mankotia expressed pride in the partnership, emphasizing the commitment to enhancing supply chain process capabilities and introducing real-time data visibility for LS&Co.’s manufacturing base. By strengthening its supply chain and transitioning into a DTC-first company, LS&Co. aims to draw closer to the market and its consumers.
As LS&Co. looks to the future, the company has outlined plans to expand the platform by adding more suppliers and rolling out its capabilities more widely throughout the supply chain. This forward-thinking approach reflects LS&Co.’s ongoing dedication to innovation and excellence in the sourcing and production of its renowned denim products.