Kirkland's Shops Around for Improved Supply Chain Efficiency

Home decor products retailer selects software to increase throughput and accuracy, reduce unit costs and cycle times

Home decor products retailer selects software to increase throughput and accuracy, reduce unit costs and cycle times

Eden Prairie, MN — March 29, 2005 — Kirkland's, a specialty retailer of home decor products, said today that it has generated efficiency improvements in throughput, accuracy, unit costs and cycle times following the implementation of its HighJump system.

Kirkland's implemented several components of HighJump's Supply Chain Advantage suite, including solutions for warehouse management, yard management and management visibility. The company now uses HighJump's solutions to manage distribution for more than 320 Kirkland's stores nationwide from its Jackson, Tenn.-based headquarters.

Kirkland's operates complex, high-volume operations on a flow-through model to route inbound shipments rapidly to stores. The company relies on the HighJump solutions' configuration capabilities to accommodate unexpected changes that result from Kirkland's ever-transitioning product line. New products arrive daily at Kirkland's, and 60 percent to 70 percent of stock-keeping units (SKUs) in inventory are new at any point in time. Kirkland's streamlines inbound and outbound operations for these SKUs with HighJump's yard management solution. The company said it has increased control and security over inventory and trucks in the yard through improved trailer check-in and check-out, verified yard passes and appointment scheduling.

During the fourth quarter of 2004, Kirkland's attained the initial goals it had established for implementing the HighJump solutions. The company reduced unit costs 14 percent, increased throughput 40 percent and decreased cycle time 67 percent. Outbound shipment accuracy rose from 97 percent to 99.7 percent.

In addition, with the increased reliability of inventory management, Kirkland's reduced inventory levels in its stores. Prior to system implementation, each store had an offsite warehouse to act as a buffer for irregular shipments. Kirkland's said it has now eliminated more than 90 percent of its offsite storage locations through regular, planned shipments.

Kirkland's said it recently benefited from the HighJump system during a physical inventory audit required for Sarbanes-Oxley compliance. "This was the best physical inventory I've ever been associated with. The auditors were amazed at the HighJump system's flexibility and functionality," said Todd Weier, vice president of logistics, Kirkland's.

Weier added, "We handled the busy holiday season well and are achieving every goal we set forth. We chose HighJump because of its flexible architecture and resulting low total cost of ownership. We're a business in a very fast, transitional growth mode. Minor changes in the system can mean a lot of savings for us, and we can now accomplish them easily."

Kirkland's Inc. was co-founded in 1966 by current Chairman Emeritus Carl Kirkland. The company opened its first store in Jackson, Tenn., and has grown steadily thereafter. Kirkland's stores present a broad selection of distinctive merchandise, including framed art, mirrors, candles, lamps, picture frames, accent rugs, garden accessories and artificial floral products. Stores also offer an assortment of holiday merchandise, as well as items carried throughout the year suitable for giving as gifts.