Stein Mart's Supply Chain Overhaul Saves Millions
May 2012 Integrated Solutions For Retailers
By Bob Johns, associate editor
Stein Mart saved $20 million+ by changing to a pool and dedicated distribution model to streamline the supply chain.
When Stein Mart decided it needed to overhaul its supply chain from top to bottom, it was no small task. The company did nearly $1.2 B in sales last year and operates over 260 stores. So, when Gregg Sayers, director of supply chain transportation, along with Bill Stover, director of supply chain operations, Rick Schart, VP of supply chain, and the supply chain team took on this challenge, it turned into a major project. Rick brought Bill and me in specifically to begin the conversion of Stein Mart’s supply chain model,” Sayers states. The retailer had previously been direct shipping most merchandise from vendors to the individual stores. This method was costly and difficult to manage logistically. There was minimal visibility into stock and shipping, managing receipt of the merchandise, and reconciling inventory. After about six months of research and planning, Stein Mart was ready to leap into a supply chain model that included pool distribution.