Cabela's Dramatically Cuts Inventory, Distribution Costs

Cabela's has aggressively cut inventory levels by 12 percent in its latest quarter, which has been a major focus for the outdoors retailer over the past year.

"The improvements in the inventory levels is due to our enhanced planning process, SKU reduction, and our focus on core SKUs," says Ralph Castner, VP and CFO of Cabela's. "We will continue to focus on tightly managed inventory levels throughout the remainder of the year and expect year-end inventory levels to be below last year's levels."

Additionally, Cabela's notes it has benefited from improved distribution efficiencies. "Improvements in distribution are being led by improvements in vendor compliance, better utilization of freight carriers, SKU reductions, and better use of existing systems and automation," says Tommy Millner, President and CEO, Cabelas. In its latest quarter, distribution cost decreased 10 percent.
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