Caribou Coffee brews up supply chain improvements with Logility Voyager Solutions

Logility Inc., supplier of collaborative solutions to optimise the supply chain, has announced that Caribou Coffee, the second largest company-owned premium coffeehouse operator in the US 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 per cent and increased the company's fulfilment service to above 99 per cent.

Caribou Coffee needed to improve and systematise its buying process for bringing products into its distribution centres 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 synchronise 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 utilisation up to 20 per cent and decreasing our inventory by 25 per cent. 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 per cent, while reducing excess inventory up to 25 per cent. They have also realised a greater than 20 per cent 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.

"Caribou Coffee has quickly realised the significant benefits Logility Voyager Solutions can deliver to companies who see an opportunity to improve customer service while reducing costs," said Mike Edenfield, president and CEO, Logility. "Growth creates additional supply chain challenges as new products are introduced and distribution volume, frequency and number of destinations increase. We are excited to be a part of Caribou Coffee's growth plan and help the team effectively manage the added complexity more efficiently for both strategic and tactical forward-looking activities."

Recognised industry-wide for its rapid implementation, quick ROI and ease-of-use, Logility Voyager Solutions is a comprehensive supply chain management solution suite which features performance monitoring capabilities to increase supply chain visibility and operational efficiency in key areas including demand, inventory and replenishment planning, sales and operations planning (S&OP), manufacturing planning and scheduling, supply and inventory optimisation, transportation planning and management, and warehouse management.