Rooms to Go faced challenges with supply chain analytics, leading to product returns and lost sales.
Established in 1990, Rooms to Go is a furniture store chain that was founded with the intention of bringing ease, comfort, and incredible value to the furniture buying market. They are the 3rd largest furniture retailer in the US, and they strive to provide a valuable experience that provides confidence and trust in the furniture buying process.
With such a massive operation supporting a huge number of products, product lines, and variations, knowing how much of each product to have, where it should go, and when it must arrive is a very complex undertaking. Lead times from overseas vary per product and, at this scale, mistakes are costly. As product lines expand, the model used to determine supply and demand was not always optimal. These challenges were leading to an increase in product returns and defects, and lost sales.
“Supply chain analytics has been one of the most challenging areas for us. The insights that we’ve gained from the Power BI solution are having a transformative effect on our core business.”
3Cloud leverages power bi to transform supply chain analytics for Rooms to go.
Rooms to Go engaged with 3Cloud to develop and deploy a Data & Analytics solution leveraging Power BI. This solution allowed buyers to easily see and manipulate data so they could better manage their supply chain. In just six weeks, the customer had a sophisticated supply chain model that combined historic data with predictive analytics to quickly show users when and where inventory was going to exceed capacity or fall short. 3Cloud developed statistical models that predicted costed sales, purchase orders, and on-hand inventory that can be filtered by division, distribution center, product category, and time.
Access to these predictive analytics gave Rooms to Go better insight into where inventory was headed, along with the ability to assess warehouse capacity requirements as the company grows. The new Power BI Data & Analytics platform quickly proved its value when one distribution center was about to exceed capacity. The company was able to take proactive measures to divert the crisis, ultimately saving them from potential losses. The efficiencies gained in supply chain management will reduce losses, cut expenses, and improve overall customer experience. Todd Daniell, Director of Database Technologies and Application Development at Rooms to Go stated, “Rooms to Go orders and warehouses a significant amount of product. If we can optimize our supply chain process to get even 3% of that back in efficiencies, that’s a significant savings. This new model helped us optimize the way we project, and now we’re reviewing the entire process to see what other efficiencies we can uncover.”
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