Levi Strauss & Co (LS&Co) has announced a collaboration with o9 Solutions, an AI-driven supply chain planning platform, to streamline its fabric procurement processes. This new system functions as an open marketplace, providing a real-time view of the supply chain. It allows LS&Co to quickly identify suppliers with the necessary materials on hand for clothing manufacturing. This facilitates virtual, real-time collaboration on raw material needs

Previously, LS&Co had to individually contact suppliers to identify who had the right fabric, a process that could take over 60 days. The new system provides the necessary insights to quickly assign orders, reducing lead times and matching supply to demand in real time.

The system also tracks fabric purchased in past seasons, allowing the team to reuse materials and avoid new orders, thus reducing costs. This transparency optimizes the supply chain, leading to significant cost and time savings and better margin protection.

LS&Co plans to roll out five system modules with o9 Solutions by early 2025. Three modules—Tops/Bottoms Agility Modeling, Raw Materials Planning, and Material Requirement Planning (MRP)-driven Agility—have already been developed.

Vishal Mankotia, vice president of global supply planning at LS&Co, remarked, “The early results from this work have been incredible. This agility planning model has significantly reduced fabric and sundries liabilities. This project showcases our dedication to enhancing supply chain capabilities and introducing real-time data visibility.” He added, “By strengthening our supply chain and transforming into a DTC-first company, we bring ourselves closer to the market and our consumers.”