Transforming the Store Into the Warehouse
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Rally House transitioned from using a centralized warehouse to having 61 individual store warehouses in less than 4 months. This was done using applications from DSI to provide real-time inventory visibility, increase online inventory by 4x, and significantly reduce turnaround times through direct-to-store delivery. DSI customized their warehouse applications to work within each retail store, receiving inventory and fulfilling orders the same day. This new model lowered inventory levels and improved efficiency by eliminating shipping between the warehouse and stores.
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Transforming the Store Into the Warehouse
- 1. Transforming the Store into the Warehouse: Learn How Rally House Evolved in Less Than 4 Months Session Overview: Rally House transitioned from one centralized warehouse to 61 store warehouses. Learn how they reduced stock outs by offering real-time inventory visibility to store personnel, increased SKUs available online by 4X and significantly reduced turnaround time with direct-to-store delivery.
- 2. Speaker Bob Carver Vice President of Sales DSI
- 3. Agenda Questions and Answers Evolving Supply Chain processes to eliminate the Warehouse Welcome and Overview Transforming Warehouse processes Through NetSuite & DSI
- 4. Rally House Motto: To delight our customers Rally Cry: Show Your Colors 1989 Started as a mail-order company Focus on Home Town Pride Sports boutique that offers apparel, gifts home décor representing NCAA, NFL, MLB, NBA, NHL, MLS teams, and local novelties Current 61 NEW STORES 100+ College Teams 50+ Pro Teams 9 STATES Headquarters: Kansas City
- 5. Challenges Unique inventory issues of moving specific items to specific locations Availability of inventory for customers at specific times Integrate with NetSuite Visibility to items moving through the process Maintaining organization within the warehouse
- 6. Optimizing NetSuite With DSI Apps Po # Parent Items Brakedown (SIZES) PO Receipt Transfer Orders Pick / Pack / Ship Store Apps Cycle Counts SORTINGTABLE1SORTINGTABLE2 / Route to east Route to west Local KC / E Commerce Delivery / Receiving S M L Inspecting / Sorting Vendor Customer
- 7. Still Behind 2 Years Behind Retail Industry Standards Shipping to Warehouse Shipping to Retail Vendors send everything to the warehouse Warehouse receives, sorts, ships retail and fills ecommerce Retail stores receive inventory and fill store to store orders Loss of money through shipping Loss of money through shippingLoss of time
- 8. Going Back to the Drawing Board PROPOSAL: Bypass the warehouse Vendor Retail Stores CHALLENGES Shipping product to central distribution center and then to stores Product moving through the distribution center created a blind spot in inventory visibility Newly customized warehouse, how to leverage that technology Decision to close distribution center DSI customized the warehouse apps to work within the retail stores Shipping product to retail stores DSI apps receive inventory available for customers same day DSI apps offered real-time inventory visibility to employees, reducing stock outs SOLUTIONS ACCURACY EFFICENCY CUSTOMIZATION MARCH 2017
- 9. # of Each Item Manifest # Evolving Through Flexibility MARCH 2017 APRIL 2017 MAY 2017 MOVED ALL SHIPMENTS to Direct to Store from vendors INTER-STORE Transfers In Store Receiving Product on the floor same day Inventory Manifest Vendors Retail JUNE 2017
- 10. Rally House Today Lower Inventory by eliminating distribution center FASTER Faster time to get product through inventory process, faster the product gets to the customer Direct to store delivery reduced turnaround times from weeks to days ACCURATE DSI makes managers and key holders aware and accountable to be as accurate as possible Customers can access real-time inventory availability at their local store DSI developed 12 apps for customers specialized functions EFFICIENT Integrated with DSI’s Enterprise Printing Platform and UPS for label creation INCREASED Increased inventory movement to meet real-time event-based demand for goods Increased SKU’s available on the website by 4x
- 11. PRIVATELY OWNED 38 years, Profitable with 6 global offices 340 Global Employees 21% Increase YoY of staff dedicated to R&D 38% 24/7/365 Support (Software & Hardware) 1,800+ CUSTOMERS 98% Customer Retention 94% Satisfaction in 50+ Countries CHALLENGER Gartner Magic Quadrant LAUNCH FIRST Supply Chain App Store DSI
- 12. For further information, please contact Thank You! Questions Visit Us! DSI Booth #3963 Learn about DSI & Come get a Starbucks gift card info@dsiglobal.com www.dsiglobal.com
Editor's Notes
- Title: Uncork the Possibilities–Learn how IWA Manages Wine Accessories Inventory Session Overview: IWA, a leading provider of wine accessories, chose NetSuite to streamline processes and increase warehouse efficiencies to meet growing demand. They extended NetSuite’s reach by using DSI’s platform and mobile-first supply chain apps to gain inventory visibility, optimize picking and shipping processes with M2M and parcel integrations. Join this session to learn how IWA simplified processes and increased visibility into their supply chain. BEN ARGOV President, Planet One Products, Inc Mr. Argov is the President of Planet One Products, Inc., a holding company of brands that are focused exclusively on wine storage products and accessories. The Company’s brands include IWA Wine Accessories, Le Cache Premium Wine Cabinets, CellarPro Cooling Systems and WineKeeper, and its operations include manufacturing, distribution, mail-order catalog and e-commerce for wholesale and retail customers. Starting with its first acquisition in 2004, Mr. Argov has guided the Company’s rapid growth through a combination of organic growth and strategic acquisitions, achieving 6x revenue growth over the last 12 years. Prior to founding Planet One Products, Mr. Argov spent 5 years as a CPA in Arthur Andersen’s small business practice and 6 1/2 years as an investment banker for Morgan Stanley, where he founded and managed the firm’s West Coast Media practice. Mr. Argov holds a BS in Economics from the Wharton School at the University of Pennsylvania, and an MBA from the University of Chicago. Dave Edeal As Vice President of Sales at DSI, Dave Edeal thrives on helping customers understand how personalized Inventory Management solutions, built on a mobile-first platform, can enhance their business growth in this era of modern, consumer-connected supply chains. He is a 20-year veteran of DSI and leads a team of customer account professionals responsible for new business. His vast work experience and formal educational background in engineering and business administration allows Dave to effectively communicate operational, technical and financial benefits for customers.
- Immerse customers in Hometown Pride - Rally House – who they are what they do Family-owned business – retail space since 1989 Found niche in carring local sparts products like kansas Jayhawks, Kansas city chiefs since 2009 – opened up 56 new stores – nine states – eight major areas that carry a hundred different college and 50+ pro teams AARON: I’m Aaron Liebert, the CEO of Rally House. We’re a family-owned business. We’ve been in the retail space since 1989, started by my mom and dad (0:13) back then as a, we actually started in the basement of my house when I was a kid and opened our first store in Kansas City. AARON: We carried gifts from and about Kansas. (0:32) Sunflowers, barbeque sauce, Wizard of Oz. And over time, listening to customers, we started to carry more local sports product like Kansas Jayhawks (0:43), Kansas City Chiefs and they found a really nice niche in Kansas. AARON: (:55) Since 2009, we’ve opened up 56 new stores, so we’re now in nine states, eight major metro areas that carry a hundred different colleges (1:32) and probably 50 different pro teams. And it’s been real exciting.
- Industry Best Practices Loss – shipping to warehouse MONEY Loss – Time – sorting thorugh warehouse Loss – shipping back to stores – MONEY (aaron) Most retail channels was two years behind the curve – instead of telling vendor one ship to addresses – vendors send out directly to stores - instead of warehouse – receive inventory that stores would regionally sell DSI technology can receive at stores – rally house dallas cowboys – online customers to go to store so delivery – rally house culture is rally house stuff Rally house LOCAL culture – free shipping to come to store
- AARON: (8:17) Over the last three years, you’re reading about companies moving more to store fulfillment, (8:29) direct to store, and we realized about nine months ago that the reality of our business was that we were gonna need to do that. We have all these SKUs all over the country (8:41) and they’re so inefficient, and to ship it back to a central distribution center and then ship it back to Philly. We had vendors in Michigan shipping us product that we would ship back to Michigan. (8:53) So all of the customization that we had built for our distribution center was great, but it kind of looked like we were in a world without a distribution center now. So then how do we move forward with DSI? AARON: On the DSI end, we already had a lot of the applications that were built for our warehouse that we could tweak (17:59) to slightly enroll into our stores. AARON: We made the decision to eliminate our distribution center (9:15) in March, and closed it effectively in June because we could work with our vendors to move all of our shipments directly to store, and the applications that we had built with DSI for our distribution center became applicable in the stores. Proposal to get rid of warehouse stores as warehouses DSI technology can receive at stores – rally house dallas cowboys – online customers to go to store so delivery – rally house culture is rally house stuff Rally house LOCAL culture – free shipping to come to store GOAL: Move to store fulfillment – direct to store - realization they need to move to this business model CHALLENGE: SKU’s all over the country and they are so inefficient to ship back to central distribution center and then back to the store Vendors close to store locations shipping product to central distribution Great number of customizations to distribution center process – looked like no distribution center Decision – Eliminate distribution center – Tweak customizations to work with vendors and move shipments to store – Applications DSI built became applicable in the stores
- AARON: We’ve moved all of our shipments or direct to store from our vendors, that allows us to get product onto the floor the same day it arrives, (9:57) it doesn’t have to roll through a big distribution center then reship. Over long term, it allows lower inventory because we don’t have to kind of plan for that two-week, three-week lag that it might take at a distribution center. (10:12) And it also allowed us to increase our SKU count by about four times on our website because we have a lot more product in our stores than we had in our warehouse BEAU: So UPS will drop it off and then there’s a manifest on each shipping label. We’ll just open up the DSI app on the computer, type in the manifest number, and then it’ll pull up every piece of merchandise that’s in the order. (0:13) We scan it, it calculates itself, like yeah this is the one we’re talking about. Then we just input the quantity. So it’s real easy, less error on our part. (0:23) CORNISH: Again, 61 basically mini warehouses and we have to trust that the thousand units that we sent out to all 61, 3 here 18 here 17 here, we know they’re on the way because we packed the box. We have to trust that when they get it they can literally put the number in, scan it in, and it’ll be there for them so they can literally put it on the floor in minutes because that’s the key BEAU: (0:58) Going through DSI, the store managers and keyholders, the people processing the shipment, we actually have hands on. We can see and verify, yes, we have as many as they sent us or as they said they sent us. AARON: I would say we’ve really enjoyed working with DSI because of the customization. In most companies, when you talk customization, you talk lots of zeros and lots of months. (15:25) And with DSI it wasn’t like that. It was let’s see how fast we can get this done, how well it can work with your business on a reasonable budget. AARON: A lot of companies would take years or a year to make the decision and implement, (10:35) and with the solutions between NetSuite and DSI, we were able to make the decision and effectively do it in a couple of months. BEAU: with using DSI now, (1:29) it makes it, store managers and key holders are more aware of what they’re getting and know that their product it right, or inventory stays as close to accurate as possible. AARON: (15:03) Because we’re using NetSuite, because we’re using DSI, we can be a lot more effective than a typical company of our size. CORNISH: Often times when we’re putting new product out or when it’s for a World Series or event, the faster they get the product out, the faster it’s in the inventory, the faster the customer can be happy because they’re buying their new shirt because somebody won the championship. That’s the most important thing, the customer MOVED ALL SHIPMENTS - to Direct to store from vendors Get product on the floor same day – vs waiting for it to roll through a big distribution center then reship Long term – lower inventory because didn’t have to plan for time at distribution center Process: UPS drop off – review manifest on shipping label Open DSI APP – type in manifest number, and it pulls up every piece of merchandise in that order We scan – it calculates itself We input quantity Less error on our part Warehouse gone in four months receive inventory in stores etc Inter store transfers – manhattan store & power and light store – up in a week process inventory transfers – while moving in Sporting – up and running in short amount of time – sidewalk sale pre-store opening – KC fans DSI – flexible enough tweek PO process to receive directly from a vendor – ready in a week from DSI – and Rally house was up and going Receive from vendor, pricing tags, inventory counts – inter store transvers (inventory from one store to another store when needed)
- Customization – DSI committed to create customization quickly and affordably Solutions between NetSuite & DSI – make decisions quickly and effectively update process DSI makes managers and key holders aware and accountable to be as accurate as possible Faster time to get product through inventory process, faster the product gets to the customer Expanded from 1 centralized warehouse to 61 store warehouses Customers can access real-time inventory availability at their local store Increased SKU’s available on the website by 4x Direct to store delivery reduced turnaround times from weeks to days Developed 12 apps for customers specialized functions Integrated with DSI’s Enterprise Printing Platform and UPS for label creation Increased inventory movement to meet real-time event-based demand for goods Decreased training time with intuitive, instructive apps