he footwear giant ECCO collaborates with TTX to achieve unified inventory management

TTX provided ECCO with an OFS solution, helping them achieve unified inventory management across all channels.

ECCO, a globally renowned high-end footwear brand, owns and manages the entire value chain from tanneries and shoe manufacturing to wholesale and retail. Nearly all production and operational processes are self-operated, making it the only large-scale footwear company in the world to fully control operations from upstream to downstream. ECCO has over 2,250 specialty stores and more than 14,000 sales points worldwide, with public data indicating over 1,000 sales outlets in China alone.

It is estimated that ECCO currently operates over 200 different supply chains from raw materials to factories, creating a complex system where information and data between these chains and segments become increasingly isolated, leading to high communication costs and low efficiency. Consequently, ECCO has begun to invest more in digitalizing various aspects of its supply chain, including product design, management, and sales. They have also expanded their omnichannel retail network in hopes of integrating information across nodes to enhance supply chain synergy.

This strategic move has proven successful. From 2018 to 2019, ECCO achieved record sales for two consecutive years, with online sales increasing annually. Even during the challenges of the COVID-19 pandemic in 2020, ECCO remained profitable, with online sales increasing sharply by 34%. In 2021, their Singles' Day sales exceeded several hundred million, showcasing their continued growth and resilience in the market.

Before the launch of TTX's Order Fulfillment System (OFS), ECCO's 2C and 2B businesses operated under separate fulfillment systems, with orders and inventory data completely disconnected. Any inventory reallocations relied solely on offline manual communication. TTX was fortunate to participate in ECCO's digital supply chain transformation by providing an OFS solution, which enabled ECCO to achieve integrated inventory management across all channels.

On one hand, TTX's Order Fulfillment System (OFS) integrates with the WMS (Warehouse Management System) of three major downstream physical warehouses, consolidating their previously independent inventory management systems into OFS for logical inventory allocation.

OFS categorizes inventory into actual and logical stocks, aligned with WMS inventory processing nodes. Business personnel can operate and view accurate inventory in real time within OFS. The system features comprehensive inventory reconciliation capabilities, allowing rapid reconciliation of inventory discrepancies via interface connectivity, ensuring high-precision inventory management.
OFS also automatically consolidates 2C and 2B inventories daily and proportionally allocates them to meet next-day business requirements.
In ECCO's original business scenarios, various channel orders corresponded to different inventories. Post OFS implementation, orders are matched to specific inventory rather than total warehouse stocks. This often results in instances where a product may appear out of stock in one inventory despite availability in the warehouse. To address such issues, TTX introduced inventory slicing in OFS: when the system indicates insufficient channel inventory, ECCO can adjust inventory ratios across channels by warehouse or SKU within the system, preventing scenarios where warehouses have stock but orders cannot be fulfilled, thereby improving order fulfillment rates.

On the other hand, OFS has also completed integration with the customer's existing upstream systems such as OMS (Order Management System), POS (Point of Sale), and the global business system SAP, consolidating all dispersed fulfillment business orders into a centralized platform for order fulfillment management.

OFS automates the processing of various business documents, uniformly categorizing different types of documents. When outputting to WMS, only two types of documents—outbound and inbound orders—are used, enabling WMS to swiftly handle shipping and receiving tasks.
Additionally, OFS has automated order management. Customers can set up load planning for all sales and inventory business documents within the system, allowing for automated execution and enhancing operational efficiency.
During major promotional periods, if To C warehouse inventory and efficiency cannot meet order demands, TTX's OFS enables ECCO to directly supply To C orders using To B inventory through a unified inventory system. This significantly enhances the flexibility of the supply chain.

Furthermore, OFS has integrated its internal backbone system SAP, ensuring synchronization between business and finance and achieving seamless closed-loop management.

By directly interfacing with the SAP system, OFS has streamlined the import information flow for customer overseas business, enabling closed-loop management of overseas factory reservation orders, shipping vessel numbers, document numbers, container counts, and other information. It also assumes responsibility for managing part of the overseas business's inventory in and out processes.
OFS consolidates sales data from various platforms, automatically conducts detailed data verification on a per-order basis, categorizes exception data for financial review, and interfaces with customer SAP systems to synchronize verified data, thereby enhancing the precision and speed of customer verification tasks.

TTX project manager Ding Changlin mentioned, "ECCO's business requirements are quite unique. Each link of its supply chain already has independent operational systems. It was quite challenging to achieve unified inventory management on the basis of existing systems. In this situation, it was difficult for us to directly recommend a basic, generic system for client use. We had to customize the development of the system according to the client's business characteristics. This placed high demands on the system's flexibility, scalability, and future development. Fortunately, we successfully withstood the pressure of business requirements and completed this project flawlessly according to the client's specifications."

It is worth noting that TTX also collaborated with DHL Supply Chain to provide WMS solutions for multiple domestic warehouses of ECCO, facilitating the integration of various automated devices and achieving automated and intelligent management.

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he footwear giant ECCO collaborates with TTX to achieve unified inventory management

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