Supply Chain World SUMMER 2013

Growing through acquisitionsand new store openings, StageStores Inc. has continued to findopportunities to service neighbor-hoods and small towns with a busi-ness that now spans 40 states. Alongwith the stores’ growth under theirregional names has come the expan-sion from the initial 437,000-square-foot distribution center inJacksonville, Texas, to a second162,000-square-foot distributioncenter in South Hill, Va., in 2003.

Then a third 202,000-square-footdistribution center was built inJeffersonville, Ohio, in 2008. Thesethree distribution centers have thecapacity to support 1,150 stores andprovide continued expansionbeyond the existing 872 stores.

Technology Advancements

Technology has advanced alongwith the growth, providing continu-ing efficiency gains. Oracle mer-chandising and warehouse manage-ment systems are linked with a JDATransportation ManagementSystem (TMS) and GXS, StageStores’ EDI value-added network(VAN) provider for electronicallytransmitted orders, invoices andadvance ship notices (ASN).

SDI Industries has equipped thethree highly automated distributioncenters with sortation and materialhandling equipment including tilt-tray, bombay and hanging garmentsorters; print-and-apply labelers forcross-dock cartons; and slat sortersfor outbound cartons.

Spaulding Software supplies thelabor management system (LMS)called ProRep that tracks individ-

ual productivity and supports theincentive-based payroll system.The addition of e-commerce inDecember 2010 meant addingmore shelf space for products,shipping stations for packing andshipping to customers and thestaffing to support a quickresponse to new orders arrivingdaily in varying volumes.

Although technology and storegrowth have contributed to the suc-cess that distribution and logisticshave enjoyed, the company says thereal story lies in the constant atten-tion given to 1) building strong rela-tionships, 2) the focus on develop-ing leadership talent, and 3) anexpectation that Stage Stores willinnovate to adapt to changing con-ditions and not use those changes asan excuse for failing to deliver theresults promised.

Relationship Building

Even though Stage Stores has anaggressive compliance program,the company supplies vendors withquick, detailed descriptions ofproblems, and communication isset in motion to determine thecause and corrective action forfuture shipments.

GXS is currently programmingthe next level of enhancement tothis program to more efficientlycapture, report and communicateboth supplier and carrier perform-ance more accurately and in a moretimely manner. The resultingreports also will glean inboundtransportation data that providemore actionable reporting of resultswith less manual effort.

Stage Stores has established aninternal training program designedto identify future leadership talent

Be NimbleIt takes a nimble supply chain to manage the growth of the Stage,Bealls, Peebles, Goodys, Palais Royal and Steeles chain of stores.

Stage Stores’ three distributioncenters support 1,150 stores andprovide continued expansion tothe company’s brands.

retail stage stores inc.

www.stagestoresinc.com / Projected 2013 revenue: $1.6 billion / HQ: Houston / Employees: 14,000; 700 distribution center employees / Specialty: Fashion stores

SUMMER 2013

and cultivate that talent before theyare actually needed. Monthly train-ing sessions are conducted for exist-ing managers, supervisors and thosewho have been identified as poten-tial future leaders.

Whatever it takes

This phrase has become StageStores’ theme and a key element ofthe company’s culture. Since itsstores are relatively small, the week-ly average number of cartons deliv-ered to each store is comparativelysmall. During some times of theyear, filling that trailer on a dailybasis can become a challenge.

To address that issue, StageStores’ outbound carrier partner

Forward Air Solutions (FAS) is rout-ing cartons from other clientsthrough Stage distribution centersusing its highly automated shippingsorters to fill the trailers morequickly. The result is that the clientis able to ship more frequently whileenjoying full truckload rates to thehubs; the carrier enjoys being ableto increase volumes, improve routedensity and better service its clientbase; and Stage gets the increasedfull-trailer release frequency.

Another area demonstrating con-fidence in the partnership betweenStage Stores and FAS is the practiceof invoice-less payment. BecauseStage Stores electronically mani-fests outbound trailers and scans

cartons as they are delivered to itsstores, every carton is accountedfor. That makes it easy to pay fordeliveries the following week with-out requiring a typical invoice. Theresult is faster cash flow for FAS andless invoice matching.

retail stage stores inc.

GXS is proud to work with Stage Stores to address business-critical initiatives by providing B2B operational intelligence. Thissolution helps Stage Stores achieve real-time transaction visibili-ty, automated deduction management, reporting and analysis formonitoring partner performance and improving the accuracy,completeness, and timeliness of its B2B transactions. GXS is aleading B2B integration services provider and operates theworld’s largest integration cloud, GXS Trading Grid®. GXS’ soft-ware and services help more than 550,000 businesses, including22 of the top 25 supply chains, extend their partner networks,automate receiving processes, manage electronic payments, andimprove supply chain visibility. For more information, visit GXS atwww.gxs.com.

Published by Phoenix Media Corporation Tel: 312.676.1101 Fax: 312.676.1280On behalf of GXS © 2013 Phoenix Media Corporation. All rights reserved.

About GXSGXS is a leading B2B integration services provider and operates the world’s largest integration cloud, GXS Trading Grid®. Oursoftware and services help more than 550,000 businesses, including 22 of the top 25 supply chains, extend their partner networks,automate receiving processes, manage electronic payments, and improve supply chain visibility. GXS Managed Services, ourunique approach to improving B2B integration operations, combines GXS Trading Grid® with our process orchestration servicesand global team to manage a company’s multi-enterprise processes. Based in Gaithersburg, Maryland, GXS has direct operationsin 20 countries, employing more than 2,800 professionals.

To learn more, see www.gxs.com, read our blog at www.gxsblogs.com, follow us on Twitter at twitter.com/gxs and join us onLinkedIn at www.linkedin.com/company/gxs. You can also access our public filings with the Securities and Exchange Commissionat www.sec.gov/edgar.shtml.