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TheStreet Open House

Caribou Coffee Brews Up Supply Chain Improvements With Logility Voyager Solutions

Stock quotes in this article: AMSWA

Logility Inc., a leading supplier of collaborative solutions to optimize the supply chain, today announced Caribou Coffee, the second largest company-owned premium coffeehouse operator in the United States based on the number of coffeehouses, has achieved impressive results with Logility Voyager Solutions™. In the first 12 months, Voyager Solutions has helped support Caribou Coffee’s aggressive growth initiatives across its three channels of business (retail, franchise and commercial), increased inventory turns by 20 percent and increased the company’s fulfillment service to above 99 percent.

Caribou Coffee needed to improve and systematize its buying process for bringing products into its distribution centers to drive better replenishment of its 585 locations and reduce in-store stock outs of consumables, ingredients and sellable end items. In addition, the company seeks to implement a sales and operations planning (S&OP) process and needed highly efficient processes executed with accurate data and forward visibility. To achieve these goals, Caribou Coffee turned to Logility Voyager Solutions to help more accurately project future demand, and synchronize supply and inventory levels to ensure the right supply chain resources are available to meet its customers’ needs at the right time and cost.

“To continue delivering the highest possible customer service while executing on our growth path, we needed to improve our supply chain operations,” said Karen Francois, director of strategic sourcing, Caribou Coffee. “We set forth aggressive goals for our supply chain including increasing capacity utilization up to 20 percent and decreasing our inventory by 25 percent. In the 12 months following our implementation of Logility Voyager Solutions, we found our product availability and buyer efficiency both increased and the solution has exceeded our expectations and given the Caribou team more visibility and focus.”

Since deploying Voyager Solutions, Caribou Coffee has consistently achieved a greater than 99 percent fulfillment service level, improved inventory turns 20 percent, while reducing excess inventory up to 25 percent. They have also realized a greater than 20 percent reduction in the value of its excess inventory. The sourcing team is able to devote its time more to strategic activities instead of focusing its efforts on developing and maintaining its demand and replenishment plans. Voyager Solutions also provides the foundation for Caribou Coffee’s S&OP organization.

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