In 2014, Princess Auto, a Canadian retailer of tools and equipment, was still using spreadsheets and manual processes for its inventory management and retail replenishment. They found the archaic process to be time-consuming, error-prone, and not easy to scale as the company grew.
This also caused a strain on Princess Auto’s supplier relationships because the company relied on fragmented and reactive processes not aligned with modern supply chain expectations. The business needed to modernize its processes, improve efficiency, boost the accuracy of in-stock levels to avoid lost sales, enhance overall visibility and upgrade its planning capabilities.
Because of Princess Auto’s management’s previous work with supply chain consultant Oliver Wight on a distribution resource planning (DRP) system, and the latter’s innovative flowcasting model, the company decided to engage with them on the inventory management/retail replenishment project. The goal was to create a unified, synchronized view of the supply chain so that inventory flowed efficiently to meet customer demand with minimal waste and disruptions.
Based on Princess Auto’s specifications and business requirements, Oliver Wight designed and built DRP software that delivered on all expectations. The advanced system went beyond the basic model of retail forecasting and replenishment, providing a comprehensive representation of how the entire supply chain and distribution network operates. Oliver Wight created a holistic, simulation-driven system that mirrored Princess Auto’s real-world business processes.
Almost immediately, Princess Auto saw its in-stock levels (i.e., percentage of items available in store to purchase) jump from 93% to 95% — notably while its teams were still working off spreadsheets in the old ordering system. Through various refinements in forecasting since, the in-stock figure has averaged between 97% and 98%, boosting sales and increasing customer satisfaction.
Princess Auto’s suppliers have also benefited from increased inventory visibility and more accurate order schedules, strengthening the relationships, and improving overall supply chain performance.
