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Cooking.com achieves ROI within one quarter
Cooking.com (www.cooking.com) is a leading online and catalog retailer of cookware,
offering a complete assortment of top brand cooking products at competitive prices.
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- Cooking.com’s business challenge was to grow revenues by adding new products without
bringing in a larger quantity than needed initially or too small a quantity and
then stocking out
- Manual replenishment process was taking over a week
- Using a spreadsheet for forecasting made reacting to new item-sales a slow process,
manually going through 4,000 or 5,000 SKUs individually to see the sales patterns
and trends
- It took three days to analyze the inventory, one day to manually enter the data
into the purchase order solution SKU-by-SKU and another day to fax information
- Information that had been stored in spreadsheets transitioned to a central repository
for cross-functional integration
- Since JustEnough can mimic an existing SKU or set of SKUs and forecast a new item
very quickly, adjustments can easily be made to that forecast as sales data comes
in
- JustEnough provided a higher degree of real-time reporting to everyone in the company
from the merchandise team to the finance team
- The time taken to forecast and replenish reduced from a week to a day- a 75% reduction
- Cooking.com ran 2,000 more SKUs on the same out-of-holiday inventory dollar amount,
which equated to a 35% reduction in costs
- The process of managing 6,000 SKUs changed from manually to automatically by exception
- ROI was acheived within one fiscal quarter
- New SKUs can now be modeled on existing SKUs, providing greater accuracy
- Company-wide access to centralized information provides one view of demand
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