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Case Study

Large Wholesale Club Modernizes Omnichannel Inventory in Less Than Four Months with Nextuple

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-40% Inventory-Related Cancellations
+10 Basis Points for Conversions
<4mo Solution Implementation

The Large Wholesale Retailer was up and running with a new Enterprise Inventory Service across the entire organization within four months.​

Customer Profile

With hundreds of club locations and billions in revenue, the wholesaler selected Nextuple to help them move away from SaaS solutions and to modernize inventory management operations, reducing overall cost of ownership.

Before engaging with Nextuple, the wholesaler found that they were beholden to the vendor to make changes in their legacy SaaS system as market conditions changed. In order to get better visibility into inventory, reduce cost of ownership and improve their ability to respond quickly to market trends, they chose Nextuple’s microservices offering to build new inventory management capabilities and eliminate SaaS operating expenses.

Case Study - Wholesale

The Challenge

The customer was searching for a quick solution to updating their Enterprise Inventory Management capabilities. In a recent survey of retail IT leaders, 52 percent of respondents rated inventory visibility as a key priority, and 34 percent cited Order Management Systems as a critical technology initiative for the coming year.

Lack of visibility was creating issues with cancels, as well as resulting in missed sales opportunities online. With hundreds of store locations and increasing digital demand, real-time visibility into inventory was a key requirement for meeting customer expectations.

On the execution side the customer was looking for improved node controls with no picks and to move away from static safety stock calculations in order to improve the experience. In addition, the SaaS solution did not provide robust reporting and reconciliation across systems related to inventory data which drove up IT costs related to troubleshooting.

By moving away from its SaaS system, the customer hoped to quickly add new capabilities, improve visibility, and decrease total cost of ownership, while reacting quickly to evolving customer needs and market trends.

Wholesale Club Inventory

The Solution

Microservices provide an effective way to build new capabilities on top of the existing tech stack. The customer chose the Nextuple Order Management Studio (NOMS), a modern cloud-native suite of flexible and scalable microservices. The technology allows omnichannel retailers to quickly and effectively respond to consumer demands for speed and convenience while optimizing the cost to serve. 

Using the Promise and Inventory Tuple, they were up and running with a new Enterprise Inventory Service across the entire organization within four months. With greater visibility, improved data accuracy, increased flexibility, and added monitoring they expects vastly improved KPIs in the areas of cancels and missed sales.

The Results

According to the Director of Digital Engineering at the wholesaler, “We are expecting to drive down our inventory-related cancellations by over 40 percent and improve conversion by 10 basis points with the new Enterprise Inventory Service from Nextuple.”

The service allows them to move inventory reservations into the checkout process, improve node controls with no picks and to move away from static safety stock calculations. In addition, the new service has robust reporting, alerting and reconciliation capabilities related to inventory data which will shorten root cause analysis cycles.

These and other capabilities in the inventory microservice are expected to drive the results.

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