Cabela's Goes on Hunt for Better Inventory
Topic Marketing Channels, Distribution, and Supply-Chain Management
Key Words Strategic channel alliance, dual distribution, inventory, order fulfillment
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News Story 

In the 1960s, Cabela's was a two-employee direct-mail operation. Today, the Sidney, Nebraska-based outdoor outfitter is the world's largest direct marketer and specialty retailer of hunting, fishing, and related merchandise. Though still famous for its direct-mail catalog business, Cabela's now sells goods through retail superstores and the Internet. Cabela's showrooms bring the outdoors inside: museum-quality displays of wildlife, fishing ponds, and mountain replicas attract tourists and give outdoorsmen a needed boost during the off season.

In recent years, however, Cabela's order-fulfillment system had become outdated. The legacy system, while tailored toward catalog and Web distribution channels, was failing to integrate with new retail outlets, and management desired a flexible solution to synchronize customer orders throughout all marketing channels.

Yantra Inc., a Massachusetts-based supply chain technology company, provided the solution. Cabela's adopted he firm's order-management-and-fulfillment solution, bringing together its disconnected silos. As a result, Cabela's has global inventory visibility and control through one centralized computer tracking system and is again delivering high-quality outdoor gear with maximum efficiency and reduced logistics costs.

Questions
1.

What opportunities and challenges does multiple distribution (dual distribution) create for Cabela's?

2. Why was the old inventory and order-fulfillment system inefficient for Cabela's?
Source Anthony Coia, "How Cabela's is maximizing fulfillment efficiency: in replacing an outdated legacy system, the outdoor apparel retailer turned to a new supply chain solution to improve customer service and reduce logistics costs," Apparel, June 2005 v46 i10 p35(2)
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