COMPANY: The Container Store
WEBSITE: www.ContainerStore.com
INDUSTRY: Retail, Consumer Goods
PUBLIC: NYSE:TCS
JOHN GALT SOLUTION: Atlas Planning Platform
Results
- Decreased inventory levels while increasing customer service
- Improved forecast accuracy and ability to provide reliable replenishment plans to suppliers
- Enabled company-wide S&OP process to focus on long-term business growth
Company
Founded in 1978 and based in Coppell, Texas, The Container Store is the leading retailer of storage and organization products in the United States, offering more than 10,000 unique storage solutions. The Container Store has more than 90 locations all over the country that each average 25,000 square feet and a growing online business
Challenge
Prior to implementing the Atlas Planning Platform, The Container Store struggled to manage the flow of products across their supply chain. They lacked visibility to customer demand or a formal way to deliver products to the stores in a timely manner. The retailer was also unable to monitor inventory delivered from suppliers. This made it increasingly difficult to efficiently manage inventory across their growing supply chain.
The Container Store set out to increase customer service, decrease inventory, improve inventory turns, and develop a strong, repeatable process to meet its vendors’ requests for reliable forecasts. The company identified a need for an advanced supply chain planning software solution that would smoothly integrate into its buyer’s work processes, require minimal IT resources, and produce an accurate forecast at the SKU-week level.
At the time, the team’s planning process was fragmented and built in an old ERP system, an outdated store replenishment application, as well as other logistical software packages and an overwhelming number of Excel spreadsheets. The company struggled to decide what supplies to order, what products to manufacture and how to get them to the right stores at the right time.
Solution
The Container Store realized that a centralized planning engine would enable the team to manage the end-to-end supply chain and support their growing business. They needed a supply chain planning solution that would allow them to properly forecast product demand and drive the manufacturing plan, as well as the flow of inventory from manufacturer to distribution centers and into their retail stores.
The Container Store selected the Atlas Planning Platform from John Galt Solutions. Working together, the highly skilled supply chain professionals at The Container Store and John Galt’s team quickly defined the project scope and implemented Atlas.
Quickly, Atlas was able to create a strong demand forecast as the base for better inventory planning. Atlas’ capabilities gave The Container Store visibility to received goods and the flow of inventory, as well as it delivered invaluable insights to see and analyze customer demand at the store level.
Benefit
The implementation of Atlas Planning Platform allowed The Container Store to establish a strong demand forecast for easier inventory and replenishment planning execution. The Container Store instantly improved profitability with insights from Atlas. The ability to respond to real-time customer demand at the store level allowed them to avoid stock-outs on popular products and adjust production of items with less traction. Managing product turn more efficiently allowed the company to lower their inventory levels while increasing their customer service levels.
Today, The Container Store has moved their process beyond the basics of demand planning, implementing a robust, integrated S&OP process. Visibility to the entire supply chain now makes it possible for the company to meet regularly with Marketing, Sales, Finance, and other internal functions to make informed business decisions at the long-term strategic level.
“A benefit of partnering with John Galt is their ability to understand our business needs and help us craft solutions that meet those needs.”
Mark Annerino, Merchandise Planning Director
