+ CASE STUDY
A national leader
experiences considerable annual growth
Goodwill Increases Revenue by $1.5M with Solutions DGR
The Goodwill highlighted in this case study was founded in the 1950’s, through the effort of a local advocacy group working to increase job opportunities for people with disabilities.
Over the years, Goodwill’s presence has expanded with new stores and online shopping, but its purpose has remained the same: providing tools that help people overcome barriers to employment and find meaningful work.
This Goodwill is a leader in the national Goodwill market and was searching for the means to improve the speed and efficiency of its retail business. At the time, Goodwill was experiencing more foot traffic than its current retail management system was able to accommodate in a timely manner. As a result, potential customers (and sales) were leaving the store due to long lines. In addition, Goodwill wanted to improve the tracking and pricing of donated goods.
Goodwill initially approached Solutions ITW with interest in the Inventory Management module of the Solutions DGR. Solutions ITW worked with Goodwill to identify their current struggles and desired outcomes. Based on this discovery process, Solutions ITW presented a solution that would not only address Goodwill’s inventory issues, but also allow Goodwill to better manage their entire donated goods operations.
Goodwill selected Solutions DGR as its new donated goods management system and defined two objectives: 1) Accurately track donated goods, and 2) Improve speed of checkout.
The Inventory Management functionality of Solutions DGR allows Goodwill to individually serialize and track each donated good that is received. With this improved traceability, Goodwill is able to accurately capture the number of donations received and enforce correct pricing for each of those items.
Solutions DGR allows Goodwill sales personnel to process sales quicker and more accurately using the barcodes that are generated at the point of donation processing.
The Dashboard Reporting provides Goodwill management a real-time view of the entire donated goods operation. This allows management to make decisions and change directions quickly, using data that is not stale.
2016 vs. 2017, May 1 – November 30
Solutions DGR has changed the way we do business. It has grown our sales, increased our productivity, and improved our customer service on the front line… If you use the data as intended, there is no doubt you will be able to grow sales and increase your net.
+ Vice President of Retail
Solutions ITW implemented the Solutions system at one location as a pilot on May 1, 2017, with the remaining locations implemented over a span of 4 months. In the first 6 months from the initial implementation, retail revenue increased by more than $1.5M over the same period the previous year.
The stores are seeing consistently improved sales numbers, with highest sales days jumping an average of $2k.
In addition to the higher sales numbers, tracking and reporting of the donated goods inventory is now accurate, and management is able to control pricing and discounts.
The Net Revenue Benefit of this venture as of November 30, 2017, is $1.06M.
Project Expenses include software, hardware, and labor for work done by both Solutions ITW and Goodwill. Annual Fees include support and an annual maintenance subscription. Label Fees include the fees for the barcode labels used to manage inventory and speed up processing. Additional Revenue is the increase in revenue over 2016. Savings include the reduced ongoing cost of the software versus the previous system.
2016 vs. 2017, May 1 – November 30
An analysis of the retail data reveals that over the course of this study, Goodwill increased its average sale by ~$1.15 due to tighter processing and retail controls made possible by Solutions DGR. The speed of the software also allowed for more customers to be served on a daily basis.
These two factors, higher average sales and increased sales volume, account for the increased revenue experienced by Goodwill.
Goodwill accomplished its objectives with Solutions DGR, and the solution paid for itself in less than 6 months.
|Net Revenue Benefit||$1,056,642|