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Crate and Barrel Selects 4R to
Profit Optimize their Supply Chain
Leading home furnishings retailer live with 4R's IPMax service that profit optimizes store
inventory and will be rolling out other components throughout 2005
WAYNE, PA—May 25, 2005—4R Systems, Inc., a leading provider of software tools, analytical models and information services that help retailers and manufacturers significantly increase profits by optimizing their inventory and related supply chain decisions, announced today that Crate and Barrel, one of the most influential and respected housewares and furniture retailers in the United States, is implemented on 4R's IPMax inventory replenishment service to profit optimize their housewares stores' inventory replenishment.
"At Crate and Barrel, our systems and technology have focused on providing our people with information that enhances their ability to effectively manage the business," said Ed Rennemann, Crate and Barrel's CIO and VP of MIS. "With 4R, we are partnering with a company that is consistent with our values and has the people, models and technology that allow us to deliver information that shows our people the impact on profitability of the myriad of decisions that we make every day. Whether it is how much store inventory to stock, when and how much to order from a vendor or deciding when and how much to markdown, 4R is helping us make decisions to drive our profitability while also providing the customer with the best level of service."
"We found Crate and Barrel to be one of the most efficient retailers we've worked with to date. Nonetheless, in our benchmark of their entire supply chain, we identified substantial opportunities to improve profitability by optimizing many decisions in the supply chain," said Jiri Nechleba, 4R's President and CEO. "We're very excited to partner with a retailer like Crate and Barrel to help them drive better service, lower lost sales and increase profits."
Each week, 4R receives up-to-the-moment sales and inventory data from Crate and Barrel. 4R in turn applies their proprietary algorithms and technologies to that data, generating suggested inventory levels that are then merged into existing Crate and Barrel systems and provided to store staff. In direct terms, the solution generates payback in less than one year. In indirect terms, service levels have risen and store staff has reported reductions in time to order.
"We have a great relationship with 4R and will be expanding the use of 4R's profit optimized solutions," commented Ed. "Beyond store replenishment, we will be rolling out other components such as markdown optimization, vendor replenishment and DC inventory optimization."
About IPMax
IPMax is 4R Systems' Retail Inventory Productivity Maximization Service. Customers send POS data, supply chain parameters and financial information to 4R on a weekly basis and in return receive profit-optimizing reorder points and/or order quantities for replenishment products at their retail locations.
About Crate and Barrel
Crate and Barrel was founded in 1962 and now operates 127 stores nationwide. The company is well known for its design of products, merchandising of stores and the spirit of its associates. By initiating trends in product design and presentation, carefully planned expansion, customer loyalty and smart team building, Crate and Barrel has grown to its status as one of the most influential and respected housewares and furniture retailers in the United States. Crate and Barrel also offers a national bridal registry, a successful catalogue and an exciting presence on the Internet at www.crateandbarrel.com.
About 4R Systems, Inc.
4R Systems, Inc. is a leading provider of software tools, analytical models and information services that help retailers and manufacturers significantly increase profits by optimizing their inventory and related supply chain decisions. Founded by supply chain experts from The Wharton School and Harvard Business School, 4R provides capabilities that profit-optimize the matching of supply with demand. From initial launch, through replenishment and to end-of-life and for products ranging from short-lived fashion items to long-term staples, 4R provides retailers with solutions that fit their business. Clients using 4R solutions have seen increases in profitability of 1-2% of sales as a result of higher sales levels on lowered inventory. Representative clients include Linens 'n Things, Crate and Barrel, Footstar, American Pacific and Rodale. For more information, visit www.4rsystems.com or call 1-866-4RSYSTEMS.