About the Customer
Levi Strauss & Co. is a privately held American clothing company known worldwide for its Levi's brand of denim jeans. It was founded in May 1853 when German immigrant Levi Strauss came from Buttenheim, Bavaria, to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. The company's corporate headquarters is located in the Levi's Plaza in San Francisco. Levi Strauss & Co. employ more than 17,000 people around the world – supporting great brands, including Levi’s®, Dockers® and Denizen®.
Scope and Challenges
Previously, Levi’s had its former SAP Hybris e-commerce platform handle order management; however, that platform wasn’t built for all of the functionality Levi’s was making it do.
For example, once a customer placed an online order, Levi’s could not view the order in its system until it shipped. That meant if a shopper placed an order, forgot to enter a coupon code and called its customer service center, Levi’s could not pull up that shopper’s order and could not help the shopper with putting in the coupon code until the order shipped.
Levi’s also had challenges managing exchanges. For example, if a shopper returned a pair of jeans and the warehouse sent her a replacement, she could do that countless times. The system wasn’t tracking the number of times a shopper did this, so the customer could keep exchanging products with no limits.
Levi’s selected the Manhattan Order Management system to resolve these issues because the vendor could integrate with Levi’s quickly, plus all of the features it wanted were bundled together in the system.
Outcome and Implications
The pressure is only higher when the brand is overhauling its backend systems. Levi’s is in year two of a five-year omnichannel overhaul project that includes changing its order management system to Manhattan’s. The goal is to have a platform that can scale globally, integrate with multiple fulfillment third-party logistic companies, be stable during peak season, alleviate payment reconciliation issues, such as exchanges, and set a foundation to expand omnichannel capabilities, such as in-store inventory and splitting orders across distribution centers. Levi’s started the project in February 2016 and is rolling out elements in different geographic regions for its Levis.com and Dockers.com brands.
Because the Hybris system is no longer handling order management, Levi’s reduced the platform’s backend architecture by 15%. The website’s performance improved and its front-end servers no longer go down, he said.
For its call center, these changes are huge, Levi’s says. The time it takes agents to resolve an issue decreased by 20% in the first week of implementation. Plus, the system the agents use is faster. In particular, the search function that enables an agent has to find a shopper’s order is speedier. Better functionality decreased the average time of a customer service call by 90 seconds per call, which is a 20% reduction. Levi’s also was able to reduce the headcount of its support team.
“This is flexibility we didn’t have two years ago,” said Varun Bhambri Sr. Manager, IT E-commerce Levi Strauss & Co.
“Peak season is huge,” said Varun Bhambri Sr. Manager, IT E-commerce Levi Strauss & Co.
"Of a shopper returned a pair of jeans and the warehouse sent her a replacement, she could do that countless times. The system wasn’t tracking the number of times a shopper did this, so the customer could keep exchanging products with no limits" said Varun Bhambri Sr. Manager, IT E-commerce Levi Strauss & Co.
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