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Retail Consultancy Karabus Helps Outdoor Gear Retail Leader Cabela's Make Major Inventory Improvements.

TORONTO -- Karabus Management, a leading North American retail consulting firm, announced today that it has helped $2 billion outdoor gear retailer Cabela's make major reductions in inventory costs and significant improvements in in-stock ratios leading to sales improvements after redesigning inventory activities and installing a replenishment software system.

"Within six months after implementing the new inventory processes and replenishment software, Cabela's stores have reduced comparative store inventories about 12% and boosted in-stock ratios almost 7 percentage points," said Angelo Sakis, VP of Inventory Planning and Purchasing at the Sidney, Nebraska based retailer. "We reduced back-room inventories by flowing most of our store deliveries directly to the selling floor, as opposed to stocking the back rooms," he said. "Karabus was key to generating strong financial returns on our investment in our new replenishment tool. The Karabus team is experienced and meshed well with our team. Most importantly, Karabus really understood the challenges of driving change with an already successful retailer."

The consulting work was delivered by Karabus' inventory optimization service line. Karabus helped Cabela's develop the business requirements and design the process changes required to take advantage of the retailer's new Evant replenishment software. The consulting firm also trained Cabela's inventory control managers on how to master their new jobs and the software.

"The team at Karabus trained our people on the new tools to ensure maximum return on our investment," Sakis said. "While we got great results from our new replenishment system, we believe most of the gains came from the improvements Karabus recommended in new business practices and policies. They made sure we had new, focused and accountable roles in this function."

Karabus has been steadily building its inventory optimization service line. "Over the past five years, we have helped almost 20 retailers increase sales and profit margins by reducing stock outs and lost sales, while improving use of working capital by better managing inventory investment," says founder and CEO Antony Karabus. "Many retailers are struggling to get value from their investments in automated replenishment systems. We help them solve the most important issues in improving inventory replenishment, which are largely not about how to install or use the technology. Rather, they are about how retailers must change their strategy, business processes, organizational structure, jobs, measurement and reward systems to take advantage of the technology."

"Prior to joining Karabus, our inventory consultants had previously implemented advanced replenishment systems and processes at over 130 retailers and wholesalers." Karabus continued. "On average, our inventory management consultants have 20 years of work experience and are very familiar with virtually all the leading auto-replenishment systems."

"Truly effective replenishment is about more than just accurately forecasting sales," says Dick Lynch, an EVP at Karabus and a former President of The Sports Authority. "Understanding the economics of replenishment and ensuring that those factors are properly considered in the replenishment process can make a significant difference in company profitability. The larger the organization, the greater it's potential for seeing significant returns." Lynch has also been CEO of E3, a leading auto-replenishment system prior to its acquisition by JDA Software Group Inc.

About Karabus Management

Karabus Management ( is a leading North American consulting firm focused on the retailing industry. For more than 17 years, Karabus has helped retailers across the U.S. and Canada to significantly and measurably improve financial performance. Clients include A&P, Casual Male ,BI-LO/Bruno's, Sobey's, Zales, Hudson's Bay Company, Cabela's, Lane Bryant, American Eagle, Neiman Marcus, Burlington Coat Factory, Forzani Group, Maurices, Nike, Eddie Bauer, Hallmark and Marks Work Wearhouse. The firm, with 45 senior consultants, has been an industry pioneer in merchandising optimization. For more information about Karabus Management's inventory optimization services, contact Andrea Elliott at (416) 373-4242 or by email at
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Publication:Business Wire
Date:Mar 19, 2007
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