Case Study: H&M Group achieves lower inventory and higher sales with IDEO

H&M Group cuts stock 22% and boosts sales 34% with IDEO

H&M Group, a major global retailer, faced a significant challenge in its supply chain. The company's traditional model made it difficult to accurately predict clothing demand, leading to both excess inventory that could end up in landfills and customer dissatisfaction when items were out of stock. To address this problem and support its aggressive sustainability goals, H&M partnered with the vendor IDEO.

IDEO took a human-centric, end-to-end approach to understand H&M's supply chain. This work led to the creation of an algorithm for more precise demand prediction and a tool called "Cruise Control" that provides a shared view of information. The solution implemented by IDEO resulted in a successful pilot program, achieving a 34% increase in sales and a 22% reduction in stock. This significantly cut waste and improved the business's bottom line.

H&M Group