Gain Supply Chain Visibility
Featuring Tom Birmingham, VP and CTO, The Container Store

This $550 million cross-channel retailer's real-time view of centralized inventory is driving store and Internet sales.

Retail profit margins are becoming tighter. Competition is increasing. And you're distributing more products than ever to meet customer demand. To stay ahead of your competition, you need to gain efficiencies and productivity in your supply chain. If you use technology to advance processes that align with company objectives, you can rapidly attain business benefits and therefore, a faster payback. This theory drives technology enhancements at The Container Store, a retailer that provides shelving and household organizational solutions, including items ranging from hooks for garage tools to complete wood, metal, and plastic organized closet systems.

Historically, the retailer has grown at an average rate of 15% to 20% per year since its inception in 1978. With 39 store locations and $550 million in sales estimated for 2007, the retailer strives to maintain high customer service levels in its stores. Because of The Container Store's products, which are often dependent upon one another to work as an all-inclusive solution, it is imperative that its stores have high in-stock levels, so that customers can obtain all necessary parts for projects. During its growth, The Container Store deployed a proprietary POS system because it was a primary consumer touch point. Subsequently, it focused on its supply chain because ensuring adequate store inventory levels directly affected customers receiving sought-after products. Over the last five years, it fine-tuned its proprietary Custom Design Center software, which is used to create custom organizational solutions for specific areas, such as a closet. Continually updating its technology, The Container Store is currently upgrading its supply chain software to better ensure merchandise availability in its stores and through its Web site.