Specialty retailer Restoration Hardware successfully used the GT Nexus platform for ocean transportation bids, including optimization of transportation spend and carrier allocations. Finalized agreements were then converted into digitized service contracts. With 2006 sales of over $581 million, Restoration Hardware operates 103 retail stores and eight outlet stores in 30 states, the District of Columbia, and Canada.
The Web portal allows internal users at Restoration Hardware, carriers, and other logistics partners to use a common set of applications on demand. All data, including rates and service terms, are captured online in standardized formats. As part of the transportation bid, a strategic allocation optimization engine compares thousands of different service and price scenarios. It then evaluates the bids to determine an allocation plan that optimizes transportation spend while preserving key business rules.
Once contracts have been awarded, the system becomes a transportation contract management system, supporting ongoing amendments and updates as services are delivered.
Restoration Hardware reported sales growth of 22.5% to more than $700 million in fiscal 2007.