Guitar Center selects Quantum Retail's 'Q' to optimize inventory fulfillment in their next stage of growth
Jan 17, 2007
Guitar Center quickly implements Q for optimized allocation, advanced inventory forecasting and order planning.
CARLSBAD, Calif., Jan. 15, 2007 - Guitar Center, one of the largest specialty retailers in the U.S., has implemented Q, a bolt-on inventory optimization solution from Quantum Retail Technology. Q is a solution that sits alongside a retailer's existing supply chain planning systems and continuously optimizes inventory for every item in every location. By leveraging merchandise assortment goals and strategies and a multi-dimensional view of store-level item behavior, Q is able to provide visibility to both near- and long-term item performance potential, effectively bridging the gap between planning and execution.
Guitar Center was seeking additional sophistication to improve store level inventory efficiency in their next growth phase. As a fast growing retailer it became critical to achieve improvements without the disruption of a lengthy systems implementation. Their executive management and technology teams began a search for a bolt-on solution that could help achieve their merchandise and financial goals for the future.
"We thought we were looking for the impossible, but found it in Quantum Retail's Q, a powerful, inventory management solution that allowed us to improve results quickly without significant disruption or change," said Irene Messier, senior vice president of planning and allocation for Guitar Center. "The fact that Q provides a single and consistent view to inventory need for all types of items, whether replenished and allocated, is a stroke of genius!"
"Q uses a proprietary approach that has been designed to be the most accurate, responsive and reliable inventory tool in the ever-changing world of retail," said Dr. Linda Whitaker, chief scientist for Quantum Retail. "However, a guiding principle in our research and development was to make Q practical and useable for non-scientists. Q makes available for all retailers the unfair advantage that only a few have enjoyed until now and through our work with an exceptional partner in Guitar Center we're pleased to make it a reality."
Within three months the project was delivered on time and on budget. After an eight-week monitoring period, service levels showed an average increase and inventory displayed a reduction of units when compared to a control group. Since then, by delivering insights and exceptions that planners can quickly take action on, Q has continually rebalanced stock throughout Guitar Center's nearly 200 stores, leading to fewer stock outs and improved sales and profit. Through the use of Q's advanced forecasting and order planning module, Guitar Center now has more visibility to long range inventory need and is able to optimally flow inventory to their stores.
Next, Guitar Center plans to extract more efficiency by extending the use of Q for multi-level distribution and replenishment.
Q is available as an annual subscription and Quantum Retail offers low impact pilots to ensure value delivery, alignment of investment to benefits and rapid ROI. Q can be deployed in either hosted or customer deployed environments.
About Quantum Retail Technology, Inc.
Quantum Retail Technology, Inc. is a leading provider of software solutions that enable demand driven supply networks. Quantum's flagship solution, Q, helps retailers continually achieve the merchandise and financial goal for every item in every location. By leveraging item assortment strategies and goals, Q links the art of merchandising with the science of inventory fulfillment. Quantum Retail solutions allow retailers to optimize inventory availability and supply network performance with low risk and high ROI. For additional information email info@quantumretail.com, or visit www.quantumretail.com
About Guitar Center
Guitar Center is the leading United States retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment. Our retail store subsidiary presently operates more than 195 Guitar Center stores across the United States. In addition, our Music & Arts division operates more than 90 stores specializing in band instruments for sale and rental, serving teachers, band directors, college professors and students. We are also the largest direct response retailer of musical instruments in the United States through our wholly owned subsidiary, Musician's Friend, Inc., and its catalog and website, www.musiciansfriend.com. More information on Guitar Center can be found by visiting the Company's web site at www.guitarcenter.com.