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Asian Online-to-Offline Platform Sophie Paris Transforms its Supply Chain Business Model with JDA


Leading fashion platform deploys JDA Warehouse Management as an integral part of its O2O retail strategy

Recognizing the need to boost foot traffic offline while balancing online sales, Sophie Paris embarked on a journey to transform its distribution center into a fulfillment center, with the help of JDA Software, Inc. By deploying JDA® Warehouse Management, Sophie Paris has successfully shifted its business model to online-to-offline (O2O). This approach is part of Sophie Paris’ digital transformation initiative over the last few years.

Sophie Paris was founded in Jakarta in 1995 and has grown to become the fastest growing O2O social shopping platform in Indonesia. What started as a home-based handbag manufacturing business by its French founder and entrepreneur Bruno Hasson is today a success story in countries beyond its headquarter in Jakarta, Indonesia. The company also operates in Philippines and Morocco. With more than 400 staff and 400 business centers and two million members, Sophie Paris sells 50,000 fashion products a day on its O2O platform. Currently, SophieParis’swebsite generates 1.5 million monthly visits, which makes it the third most popular fashion site in Indonesia in terms of traffic. The company facilitated 80,000 online transactions in January, which was double what it achieved the month before. In February, it expects to see an additional 40 percent uptick in transactions. Thirty percent of its sales force is already ordering online, generating 50 percent of Sophie Paris’s overall business apparatus in February. The company remains confident this number can grow to 100 percent by the end of 2018.

»We have invested in a digital transformation initiative which includes converting our retail strategy to an O2O model as part of an overall business model shift from business-to-business to business-to-consumer which pushed our daily orders from 400 to more than 10,000 per day,« said Bruno Hasson, president director of Sophie Paris Group. »JDA has been instrumental to our robust order fulfillment approach, driving not only customer centricity by achieving a 99.5 percent service level but also an immediate cost reduction in overhead.«

Sophie Paris has deployed JDA Warehouse Management in its distribution center to improve productivity and inventory levels, but also adapt to supply chain changes, with the flexibility and visibility into warehouse operations it needs to succeed in a highly competitive marketplace. Since going live with JDA, Sophie Paris has improved warehouse efficiency with precision, and has the ability to prepare all orders – upwards of 10,000 orders or 50,000 items – within the same day. Sophie Paris has also reduced overhead by 25 percent and expects full return on investment within two years.

»Sophie Paris is an example of a company that recognizes the shifting shopper habits to intermix online and in-store purchases, and has responded with a highly nimble distribution strategy that offers multiple channels with a variety of picking methods to meet their needs,« said Amit Bagga, president, Asia-Pacific, JDA. »We are pleased to see such immediate and impressive results that Sophie Paris has already achieved, and they will continue to see reductions in fulfillment costs and inventory levels while gaining improved inventory accuracy, all contributing to its profitability and customer satisfaction levels.«

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