Lamps Plus AI-enables omnichannel forecasting
Lamps Plus is leveraging artificial intelligence to improve forecasting and visibility into replenishment cycles.
The regional West Coast specialty lighting retailer is deploying the Manhattan Associates demand forecasting and inventory optimization (DFIO) solution to upgrade its demand forecasting and inventory management capabilities as part of an ongoing technology modernization effort.
Lamps Plus built upon an existing partnership with Manhattan Associates to implement the AI- and machine learning-based DFIO solution, as well as the vendor’s POS, store inventory & fulfillment, order management, warehouse management, labor management, and slotting optimization, as part of a broader enterprise modernization effort.
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"Given the complexity and interdependence of demand forecasting and inventory management, and the critical importance of getting it right, we knew our legacy approach was no longer adequate to serve our business needs," said Bill Gratke, chief supply chain officer at Lamps Plus. "This implementation was among the smoothest we’ve experienced, completed flawlessly in under six months."
How Lamps Plus will utilize DFIO
Lamps Plus has implemented the Manhattan Associates DFIO solution at its West Coast fulfillment center that serves its e-commerce channel as well as its 31 stores. A second hub on the East Coast will go live in the first half of 2025.
The DFIO rollout includes the Manhattan Associates unified forecasting method, advanced statistical modeling designed to enable an ideal state of "right inventory, right place, right time."
As seasonality is a major factor in Lamps Plus’s business, Manhattan’s DFIO solution builds simulations that model the impact of seasonal demand on forecast accuracy before profiles are updated.
With the improved forecast accuracy, Lamps Plus can place orders months in advance to replenish stocks in late first quarter/early second quarter 2025, after the Chinese New Year vendor shutdown period.
E-commerce represents a significant portion of Lamps Plus sales, and the company uses a shared inventory pool approach. Lamps Plus expects it will be able leverage DFIO to meet or exceed its fulfillment service levels while running leaner on inventory, saving on carrying costs and other operational expenses.
"We’ve had a long and successful partnership with Lamps Plus, including many successful transformational software projects," said Stewart Gantt, executive VP, professional services at Manhattan Associates. "With the addition of our DFIO solution, this leading retailer has improved its forecasting, providing significant gains in inventory segmentation and available to commerce (ATC) visibility."
Established in 1976 and headquartered in Los Angeles, Lamps Plus is the nation’s largest specialty lighting retailer, operating its LampsPlus.com e-commerce business as well as 35 stores in the western U.S.
