Rei Boosts Sales By 9% Using PivotLink On Demand

Rei Boosts Sales By 9 Using Pivotlink On Demand Bapivotlink Marries

Rei Boosts Sales by 9% using PivotLink On-Demand BA “PivotLink marries up all this data in one place where people can get at it very, very easily. Looking at the data, we could see relationships we couldn’t see before. It was very empowering.” — John Strother, Director of Logistics, Inventory & Planning, REI

REI, a prominent national outdoor retail cooperative established in 1938, aims to inspire and equip its members and communities for outdoor adventures and promotes environmental stewardship through various initiatives including volunteerism and gear donations. As the company grew, REI faced increasing challenges in efficiently analyzing extensive performance data across multiple departments and vendor relationships. The desire was for a comprehensive business intelligence solution that would facilitate easier access, analysis, and insightful decision-making for staff at all levels.

Challenge

The core challenge for REI was inadequate visibility into critical sales data, compounded by the limitations and high costs of its existing on-premise BI solution. The previous systems lacked flexibility and the ability to “slice and dice” data effectively, inhibiting informed decision-making. Store managers struggled to identify regional trends, vendors lacked detailed product performance data, and merchandising teams needed tools to optimize their product mix. Overall, the need was for a user-friendly, on-demand business analytics platform that could significantly improve operational efficiency and sales performance without escalating IT costs.

Solution

REI adopted PivotLink’s on-demand business analytics platform, which allowed a broad spectrum of users to analyze numerous metrics dynamically. According to John Strother, REI's Director of Logistics, Inventory, and Planning, “We were able to fund 80 percent of the startup costs for PivotLink with the money we were already spending on maintenance fees for our existing system. Given the extra value that PivotLink brings, the remaining 20 percent was well worth it.” The pivot to PivotLink provided REI with a flexible, cost-effective system that supported detailed data analysis, reporting, and visualization, leading to more informed operational decisions.

Industry and Geography

The retail industry in North America, with REI operating across numerous stores and regions, benefited significantly from the new analytics capabilities.

Challenges Faced

• Limited visibility into critical sales and performance data for end users
• High costs and inflexibility of existing on-premise BI systems
• Lack of capability to analyze sales data comprehensively (“slice and dice”)
• Difficulty in making data-driven decisions affecting sales and inventory

Results Achieved

Implementing PivotLink’s on-demand BI solution yielded substantial improvements for REI:

• A 9% increase in overall sales
• A 1.6% increase in profit margins
• Enhanced in-stock rates, leading to improved customer satisfaction
• Reduced costs associated with performance analytics and reporting
• Better communication with key vendors, especially the largest-volume suppliers

Application of the Solution

PivotLink’s platform supports detailed, real-time analytics on returns, quality assurance, inventory management, and vendor performance. For example, REI utilizes PivotLink to analyze product returns, invoice accuracy, on-time delivery metrics, and sales comparisons across stores, regions, and seasons. Over 125 of REI’s major suppliers access data related to vendor performance, enabling proactive management of quality and logistics. The platform’s speed, power, and user-friendliness empower staff to quickly obtain valuable insights without costly IT intervention, fostering a culture of data-driven decision-making.

Impact on Business Operations

The ability to analyze data in multiple dimensions has transformed REI’s operational approach. Business analysts can now make purchasing decisions based on actual sales trends rather than intuition, improving inventory turnover and reducing stockouts. The enhancements in data accessibility and granularity have also improved overall customer experience by ensuring products are in stock and priced competitively.

Conclusion

The case of REI exemplifies how a strategic investment in a modern, on-demand business analytics platform like PivotLink can lead to significant operational and financial benefits. The improved sales figures, enhanced decision-making processes, and increased efficiency underscore the importance of flexible, user-centric BI tools in the competitive retail landscape. As businesses continue to pursue digital transformation, the ability to rapidly analyze and act upon data remains a critical success factor.

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