The Container Store Gains Visibility to Their End-to-End Supply Chain
COMPANY: The Container Store
INDUSTRY: Retail, Consumer Goods
JOHN GALT SOLUTION: Atlas Planning Suite
- Decreased inventory levels while increasing customer service levels
- Improved forecast accuracy and ability to provide reliable replenishment plans for suppliers
- Enabled company wide S&OP process to focus on long-term business growth
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.
Prior to implementing Altas Planning Suite, The Container Store struggled to manage the flow of products in their supply chain. They didn’t have visibility to customer demand or a formal way to get their products to the stores in a timely manner. They also didn't have a way to monitor what was delivered from their suppliers, making it hard to efficiently manage their inventory.
The objective was to increase customer service, decrease inventory, increase inventory turns and develop a process to meet its vendors’ requests for reliable forecasts. The company wanted a solution that could be smoothly integrated into its buyer’s work processes, required minimal IT resources, and could produce an accurate forecast at the SKU-Week level.
Their current planning process was fragmented and built around an old ERP system, an outdated store replenishment application, other logistical software packages and an overwhelming amount of Excel spreadsheets.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.
The Container Store realized that a centralized planning engine was needed to manage the entire supply chain for their growing business. They needed a solution that would allow them to forecast product demand, drive the manufacturing plan, as well as the flow of inventory from manufacturer to distribution centers and into their retail stores.
The Container Store was fortunate to have highly skilled supply chain professionals on staff, allowing the John Galt team to quickly define the project scope and implement a solution tailored to The Container Store’s needs.
Atlas Planning Suite was implemented to create a strong demand forecast as the base for better inventory planning. Atlas gave The Container Store visibility to received goods and flow of inventory as well as insights to customer demand at the store level.
The implementation of Atlas Planning Suite allowed The Container Store to establish a strong demand forecast for easier inventory and replenishment planning execution. The Container Store was able to instantly improve profitability with insights from Atlas Planning Suite. The ability to respond to real-time customer demand on the store level allowed them to avoid stock-outs on popular products and adjust production of products 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 full-fetched 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