PacSun Streamlines Sourcing, Order Management
Anaheim, Calif.–based retailer Pacific Sunwear of California Inc. hopes to drastically improve its sourcing and buying operations with the help of new technology aimed at smoothing out the discrepancies that can occur during procurement and other international transactions.
The retailer, which sources about 40 percent of its products offshore, was looking for a way to unify its buying and procurement processes to shave some time off of its production cycle.
PacSun teamed with Gloucester, Mass.–based TradeStone Technologies to implement a software system that automatically sets milestones such as quality-assurance testing, pre-production plans and production plans that are managed between both the supplier and buyer. This ensures that goods are delivered on time and on budget. It provides views in financial and line-sheet form of sourced and ordered items across all life-cycle phases.
The system develops product specifications and generates requests for quotes (RFQs) that are put out to bid to manufacturers worldwide. By normalizing disparate currencies, languages and lead times and automatically calculating the estimated landed costs for goods, the system enables product managers and buyers to compare offers from different manufacturers, regardless of their location.
“Brand management is the heart and soul of our overall strategy, so we focus on having the best and most complete portfolio of leading action-sports brands,” said Teresa Nersesyan, a PacSun vice president. “Key to this brand-management strategy is utilizing our own proprietary brands to respond to new fashion trends and expanding the breadth of our merchandise assortment and price points. TradeStone and the Unified Buying Process will play a central role in building on this strategy.”
TradeStone will begin implementation of product, sourcing and order-management modules next month, and plans to complete the project by midyear.
PacSun operates 852 PacSun stores, 116 PacSun outlet stores, 224 d.e.m.o. streetwear stores and nine One Thousand Steps shoe stores in 50 states and in Puerto Rico. TradeStone’s clients include Federated Department Stores and American Eagle Outfitters.
—Robert McAllister
