The Paper Store wins Retail Innovation Award

The Paper Store wins Retail Innovation Award

The Paper Store wins the inaugural Retailer Innovation Award run by IRT. The Paper Store was selected for this award due to the technological innovation in it’s supply chain including the introduction of Retalon predictive analytics to optimize inventory management and promotions.

As The Paper Store (TPS) grew, management there understood that in order to maintain a high customer service level, unique and diverse assortment, and convenient fulfillment options, it would have to bring world-class technology and innovation to its supply chain processes.

With an ERP system from Aptos and integration of Retalon’s predictive analytics platform, TPS is now able to calculate demand at the store, DC, and e-commerce levels. The merchant has integrated demand forecasting with purchasing, replenishment, and promotions on one predictive analytics platform, allowing automatic and proactive accounting when calculating optimal purchasing and replenishment quantities across the business.

TPS is a highly seasonal, event-driven retailer with many high peaks and low valleys in demand. To mitigate the ill effects of seasonality, the merchant has implemented a system to account for all seasonal peaks, moving events, promotions, and even weather changes. This allows TPS to maintain a high in-stock position on hot items during all seasonal peaks while avoiding overstocks and carrying costs.

Prior to bringing increased automation to its supply chain, TPS was manually reviewing almost every SKU/Store combi- nation for DC replenishment and purchasing order quantities. As part of the innovative technology TPS implemented across its supply chain, many of these processes are now automated.

The work that TPS has invested into bringing world-class predictive analytics technology to their supply chain has created many benefits, including:

  • Reporting time efficiency improvements, from several days and multiple associates to mere minutes.
  • A decrease in inventory carrying costs, marked by a reduction from 40 weeks of supply to just 12 without losing any sales.
  • 30 percent store growth through the addition of 20 new stores in less than two years.

AWARD FINALISTS:

The Paper Store won the award against strong competition from finalists: Sportsman Warehouse, Tractor Supply, and Fields Canada.

Learn more about The Paper Store and how the 60-store specialty retail chain took control of its diverse merchandise mix and overcame the ups and downs of seasonality. Matt Pillar wrote a great piece about the retailer in Innovative Retail Technologies.