Container Store Breaks Out Demand Forecasting Software - InformationWeek
IoT
IoT
News
News
12/13/2005
10:24 AM
50%
50%
RELATED EVENTS
[Best Practices] Managing Multiple Clouds
Jul 26, 2017
Putting all your eggs in one cloud basket is risky, because clouds are not immune to denials of se ...Read More>>

Container Store Breaks Out Demand Forecasting Software

Improving demand forecasting is one of the best ways to reduce supply chain costs, thus driving higher sales and better margins, a company executive said.

The Container Store Inc. said Monday it will roll out demand forecasting software from John Galt Solutions Inc. in the first quarter of 2006.

Improving demand forecasting is one of the best way to reduce supply chain costs. The drive to reduce carrying costs and increase inventory turns would drive higher sales and better margins, said Beth Gonzalez, merchandise systems director at The Container Store.

The ForecastX Demand Management Engine, a software component in John Galt Solutions' Atlas Planning Suite, enables The Container Store to increase the number of times inventory passes through its central distribution center in Texas and out to its 36 stores. The objective is to keep merchandise in stock.

The software was tested over a one-year period with one of the company's top suppliers. The decision to deploy the a analytics platform came after the company increased sales by 24 percent with 49.5 percent less inventory during a one-year test. The 125 products from the tested supplier turned 24 times during the year, compared with an average of 4.2 times for other merchandise.

"We will start with 18 suppliers, and continually add others to the program," said Gonzalez. "And the best news, our actual sales are within 3 percent to our forecast."

The John Galt software easily integrates with The Container Store's a Oracle Retek merchandising system, so buyers didn't have to learn new technology. Oracle acquired Retek earlier this year. Taking historic sales into the equation, John Galt provides an average store forecast and allows buyers to group product types and forecast far out into the next season as well. "We forecast at the product, store, and week level," Gonzalez said.

Point of sale data from all stores is transmitted nightly into a main repository at headquarters where the information is filtered through a propriety application developed in-house. That software allows the retailer to view on-hand merchandise in each store. From there, data flows into John Galt's forecasting application.

The Container Store handles approximately 85,000 stock keeping units, (SKUs). That number increases during the holidays. The holiday gift-wrap "wonderland" in the store at the end of the year increases product selection by 2,000. The company's five buyers and two store merchandise planners needed a better method for controlling inventory levels.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll