LL BEAN Inc

L.L.Bean, Inc.,[3] branded as L.L.Bean, is an American, privately held, mail-order, online,

and retail company founded in 1912 byLeon Leonwood Bean. The company is currently based
in Freeport, Maine, United States. It specializes in clothing and outdoor recreation equipment.
L.L.Bean is a privately held, family-owned company.

Sales
Direct Sales
In 2013, L.L. Bean produced over 50 separate catalog titles that were distributed to customers in all
50 US states and over 170 countries. In 2013, over 10.6 million customer contacts were received,
with over 128,000 contacts received on a single day.
The company Web site, llbean.com, launched in 1995, is among the top-rated e-commerce sites in
the industry. Customers can browse and purchase thousands of products online, including sporting
goods, home furnishings and casual and active clothing, footwear and much more. In addition,
customers can search for information on state, national and international parks, contact customer
service, watch product videos, get directions to the stores and share personal comments related to
products through Ratings and Reviews and a Share Your Story feature on both llbean.com and
L.L.Bean's Facebook page. We've also updated Purchase History, Customer Wish List and Check
In-Store Availability to enable a premium customer experience on our Web site. In 2014, llbean.com
provided customers with the ability to view, browse and book outdoor discovery schools programs
online, making it even easier to learn the skills to explore and enjoy the outdoors.
Business to Business Sales
Since the late 1970s, L.L.Bean's Direct to Business division has served organizations, teams, clubs
and companies of all sizes seeking high-quality products and L.L.Bean Gift Cards for use as
premiums, incentives, outfitting and recognition programs.
L.L.Bean uses state-of-the-art equipment to customize products for its business customers, adding
embroidery of logos and company names as well as monogramming, engraving and screen printing.
L.L.Bean Direct to Business catalogs highlight popular products and gift programs.

1.

rmation

Company Information

L.L.Bean, Inc. has been a trusted source for quality apparel, reliable outdoor equipment and expert
advice for over 100 years. Founded in 1912 by Leon Leonwood Bean, the company began as oneman operation. With L. L.'s firm belief in keeping customers satisfied as a guiding principle, the
company eventually grew to a global organization with annual sales of $1.56 billion. Our company
headquarters are in Freeport, Maine, just down the road from our original store.
With over a century in business, a satisfied customer is still our most important goal. We're proud of
our heritage and values, and we invite you to celebrate with exciting events and activities throughout
the year. In the meantime, you're welcome to browse the stories, facts and figures in this section and
learn more about our company, our heritage and our history.
L.L.Bean is a privately held, family-owned company. We do not release financial and operational
information beyond what you will find here and we do not produce an annual report.

2014 Company Fact Sheet (PDF)

Current Corporate Information

Customers have trusted L.L.Bean, Inc., for quality apparel, outdoor equipment and expert advice
since 1912. With headquarters in Freeport, Maine, the company has grown from a one-man
operation to a global organization with annual sales of $1.52 billion. In 2012, L.L.Bean employed
nearly 5,000 people year-round. More than 9,400 people worked for L.L.Bean during the 2012 winter
holiday season.
L.L.Bean re-introduced everyday free shipping to the US and Canada with no minimum purchase
and no end date in March 2011. This continues the tradition that Leon Leonwood started in 1912 by
offering all L.L.Bean products in his catalog "postpaid".

Sales
Direct Sales
In 2013, L.L. Bean produced over 50 separate catalog titles that were distributed to customers in all
50 US states and over 170 countries. In 2013, over 10.6 million customer contacts were received,
with over 128,000 contacts received on a single day.
The company Web site, llbean.com, launched in 1995, is among the top-rated e-commerce sites in
the industry. Customers can browse and purchase thousands of products online, including sporting
goods, home furnishings and casual and active clothing, footwear and much more. In addition,
customers can search for information on state, national and international parks, contact customer
service, watch product videos, get directions to the stores and share personal comments related to
products through Ratings and Reviews and a Share Your Story feature on both llbean.com and
L.L.Bean's Facebook page. We've also updated Purchase History, Customer Wish List and Check
In-Store Availability to enable a premium customer experience on our Web site. In 2014, llbean.com
provided customers with the ability to view, browse and book outdoor discovery schools programs
online, making it even easier to learn the skills to explore and enjoy the outdoors.
Business to Business Sales
Since the late 1970s, L.L.Bean's Direct to Business division has served organizations, teams, clubs
and companies of all sizes seeking high-quality products and L.L.Bean Gift Cards for use as
premiums, incentives, outfitting and recognition programs.
L.L.Bean uses state-of-the-art equipment to customize products for its business customers, adding
embroidery of logos and company names as well as monogramming, engraving and screen printing.
L.L.Bean Direct to Business catalogs highlight popular products and gift programs.

Products

L.L.Bean products are recognized around the world for their practical design and high quality. Many
items have been in the product line for several decades, such as the field coat, introduced in 1924,
and the chamois shirt in 1928. The widely recognized boat and tote bag was introduced in 1944 as
Bean's Ice Carrier. Today, over 150,000 items are stocked for the catalog, Web site and stores.
L.L.Bean signature line features a modern fit and updated style and includes classic items from the
company's archives, such as the 1933 Chamois Shirt, the Matinicus Rock Sweater and Bean's
Zipper Duffle.
The company devotes significant time and energy to product research, testing and development.
This process includes lab tests, field testers and employee and customer feedback.
L.L.Bean operates its own independent test lab for scientific analysis of materials, construction and
design. Prototypes for new products are tested, revised and retested in a continuous cycle until they
meet customer requirements and L.L.Bean quality standards. Established products continue to be
tested to maintain their high level of performance and quality.
The company also brings new and innovative products into the marketplace through extensive
interviews with customers and subsequent concept development meetings that help ensure the
products being designed will meet specific customer requirements for outdoor clothing and gear.
L.L.Bean product expertise is also reinforced by a group of 1,300 independent field testers adults
and kids who help assure product quality and performance. The company uses a combination of
expertise and testing to enhance existing products even though many are already considered "best
in class" based on customer feedback and objective consumer ratings. L.L.Bean's Web site and
products are licensed under U.S. Pat. No. 6,330,592.
"We get out into the field as much as we can at L.L.Bean and do the same things that our customers
are doing," explains company President Chris McCormick. "We use our own products so that we
have a better idea of how they're performing. This practice helps us identify better with our
customers' experiences and needs."

Operations
Customer Service
Retail Stores
International Business
Outdoor Adventures
Distribution
Manufacturing

Como hacer cestas de peridico con tapa. How to make newspaper basket with top..3gp

L.L.Bean, Inc. has been a trusted source for quality apparel, reliable outdoor equipment and expert
advice for over 100 years. Founded in 1912 by Leon Leonwood Bean, the company began as oneman operation. With L. L.'s firm belief in keeping customers satisfied as a guiding principle, the
company eventually grew to a global organization with annual sales of $1.56 billion. Our company
headquarters are in Freeport, Maine, just down the road from our original store.
With over a century in business, a satisfied customer is still our most important goal. We're proud of
our heritage and values, and we invite you to celebrate with exciting events and activities throughout
the year. In the meantime, you're welcome to browse the stories, facts and figures in this section and
learn more about our company, our heritage and our history.
L.L.Bean is a privately held, family-owned company. We do not release financial and operational
information beyond what you will find here and we do not produce an annual report.

Current Corporate Information

Customers have trusted L.L.Bean, Inc., for quality apparel, outdoor equipment and expert advice
since 1912. With headquarters in Freeport, Maine, the company has grown from a one-man
operation to a global organization with annual sales of $1.52 billion. In 2012, L.L.Bean employed
nearly 5,000 people year-round. More than 9,400 people worked for L.L.Bean during the 2012 winter
holiday season.
L.L.Bean re-introduced everyday free shipping to the US and Canada with no minimum purchase
and no end date in March 2011. This continues the tradition that Leon Leonwood started in 1912 by
offering all L.L.Bean products in his catalog "postpaid".

Sales
Direct Sales
In 2013, L.L. Bean produced over 50 separate catalog titles that were distributed to customers in all
50 US states and over 170 countries. In 2013, over 10.6 million customer contacts were received,
with over 128,000 contacts received on a single day.
The company Web site, llbean.com, launched in 1995, is among the top-rated e-commerce sites in
the industry. Customers can browse and purchase thousands of products online, including sporting
goods, home furnishings and casual and active clothing, footwear and much more. In addition,
customers can search for information on state, national and international parks, contact customer
service, watch product videos, get directions to the stores and share personal comments related to

products through Ratings and Reviews and a Share Your Story feature on both llbean.com and
L.L.Bean's Facebook page. We've also updated Purchase History, Customer Wish List and Check
In-Store Availability to enable a premium customer experience on our Web site. In 2014, llbean.com
provided customers with the ability to view, browse and book outdoor discovery schools programs
online, making it even easier to learn the skills to explore and enjoy the outdoors.
Business to Business Sales
Since the late 1970s, L.L.Bean's Direct to Business division has served organizations, teams, clubs
and companies of all sizes seeking high-quality products and L.L.Bean Gift Cards for use as
premiums, incentives, outfitting and recognition programs.
L.L.Bean uses state-of-the-art equipment to customize products for its business customers, adding
embroidery of logos and company names as well as monogramming, engraving and screen printing.
L.L.Bean Direct to Business catalogs highlight popular products and gift programs.

Products
L.L.Bean products are recognized around the world for their practical design and high quality. Many
items have been in the product line for several decades, such as the field coat, introduced in 1924,
and the chamois shirt in 1928. The widely recognized boat and tote bag was introduced in 1944 as
Bean's Ice Carrier. Today, over 150,000 items are stocked for the catalog, Web site and stores.
L.L.Bean signature line features a modern fit and updated style and includes classic items from the
company's archives, such as the 1933 Chamois Shirt, the Matinicus Rock Sweater and Bean's
Zipper Duffle.
The company devotes significant time and energy to product research, testing and development.
This process includes lab tests, field testers and employee and customer feedback.
L.L.Bean operates its own independent test lab for scientific analysis of materials, construction and
design. Prototypes for new products are tested, revised and retested in a continuous cycle until they
meet customer requirements and L.L.Bean quality standards. Established products continue to be
tested to maintain their high level of performance and quality.
The company brings new and innovative products into the marketplace through extensive interviews
with customers and subsequent concept development meetings that help ensure the products being
designed will meet specific customer requirements for outdoor clothing and gear. L.L.Bean product
expertise is also reinforced by a group of 1,300 independent field testers adults and kids who
help assure product quality and performance. The company uses a combination of expertise and
testing to enhance existing products even though many are already considered "best in class" based
on customer feedback and objective consumer ratings. L.L.Bean's Web site and products are
licensed under U.S. Pat. No. 6,330,592.

"We get out into the field as much as we can at L.L.Bean and do the same things that our customers
are doing," explains company President Chris McCormick. "We use our own products so that we
have a better idea of how they're performing. This practice helps us identify better with our
customers' experiences and needs."

Operations
Customer Service
While doing business today might differ from doing business in 1912, the philosophy of the company
has not changed. As Leon Gorman, chairman of the board of L.L.Bean, stated, "A lot of people have
fancy things to say about Customer Service, but it's just a day-in, day-out, ongoing, never-ending,
persevering, compassionate kind of activity."
L.L.Bean president Chris McCormick remains firm in his commitment to providing superior service
and excellent products. Each product is still guaranteed to provide 100% satisfaction. In Chris's
words: "Superior customer service has always been and always will be the cornerstone of our brand
and heritage and an attribute that differentiates us from the rest of the pack. It goes back to L.L.'s
Golden Rule of treating customers like human beings." In an increasingly competitive industry,
L.L.Bean still stands out as the benchmark for customer service.
Now a multichannel business, L.L.Bean continues to serve customers with knowledgeable
employees who are highly customer focused. Employees are trained to take the time each individual
customer requires to feel valued whether through mail, phone, fax, email, live chat, Facebook,
Twitter, Internet or in our stores. Each employee's goal is to ensure customers a consistently
superior service experience, no matter which channel they choose to shop. Every channel has been
built on the L.L.Bean values of honesty, quality, dependability and a guarantee of 100% satisfaction.
L.L.Bean's Customer Satisfaction department operates out of three customer contact centers in
Maine, 24 hours a day, 365 days a year. The company employed nearly 3,000 customer service
representatives during the 2013 peak holiday season. Customer service representatives answered
more than 118,000 calls on their busiest day in December.
L.L.Bean began utilizing social media in 2008 as a means of engaging with customers and building
brand awareness on sites such as Facebook, Twitter and YouTube. Ratings and Reviews were
added to L.L.Bean product pages that same year providing customers the opportunity to comment
on and recommend products. Social media links were added to online product pages in 2009
allowing customers the ability to share content on various social media platforms. In 2011, L.L.Bean
added "Share Your Story" to both llbean.com and its Facebook page as another opportunity for
L.L.Bean fans to share their L.L.Bean experiences by including text, images and video. Later that
year L.L.Bean launched its Google+ page as another opportunity to engage with fans in social
channels.

Retail Stores
L.L.Bean's retail stores allow customers to experience the company's unsurpassed quality and
knowledgeable service firsthand. The stores offer a great selection of quality products and the
friendly, expert staff is always ready to help, whether you're looking for advice, help with easy returns
or even a quiet fly-fishing spot.
The 200,000-square-foot L.L.Bean Flagship Retail Store campus is located in Freeport, Maine, on
the original site where L.L. Bean opened his retail business in 1917. Open 24 hours a day, 365 days
a year, the flagship store draws close to three million visitors each year. It features a trout pond in
the middle of the store and a 3,500-gallon freshwater aquarium that replicates a 25-foot-long section
of streambed. Many customers visit the store to stock up on gear and apparel before exploring
Maine's mountains, lakes and coastal regions.
The L.L.Bean Hunting & Fishing Store, adjacent to the flagship store, opened in November 2007. It
houses L.L.Bean's largest-ever selection of hunting and fishing gear. In 2008, the store received
LEED Silver certification from the US Green Building Council, becoming the first certified retail
project in Maine. The Hunting & Fishing store is L.L.Bean's first to receive LEED certification with 15
stores currently certified. Next door to the flagship store, the L.L.Bean Bike, Boat & Ski Store opened
in May 2007.
Across from the flagship store, the L.L.Bean Home store opened in 2009. The 33,000 square-foot
store is reminiscent of a rural country store and includes features such as reclaimed wood floors, tin
ceilings, chalkboard signs, and fixtures made from sawhorses, stackable wooden shelves and
crates. The store showcases L.L.Bean's popular Home products, which include bedding, rugs,
furniture, towels, cookware, food and decorating accessories. The store also offers handcrafted,
vintage, one-of-a-kind items.
The seven-acre retail campus also includes the 1912 Cafe, Coffee By Design coffee shop, a 16-foot
Bean Boot sculpture, a courtyard and Discovery Park, home to summer concerts and other exciting
outdoor events.
L.L.Bean continues to demonstrate its commitment to its hometown of Freeport, Maine, by
supporting the development of a 118,000-square-foot retail center and parking structure in the village
center. Freeport Village Station opened in 2009 and houses 30 stores, including the new L.L.Bean
Outlet. In 2012, as part of its 100th Anniversary, L.L.Bean donated $500,000 to the Freeport Fields
and Trail project, a program designed to help facilitate local youth recreation.
L.L.Bean has 19 retail stores outside Maine, with new stores opening each year. All L.L.Bean stores
offer the same customer advantages that are the hallmark of L.L.Bean: quality products, superior
customer service and a link to outdoor enjoyment and education through free clinics, speakers and
outings with the store. Plus L.L.Bean's Outdoor Discovery Schools courses and tours at nearby
locations.

L.L.Bean has 10 outlets in locations throughout New England and the Mid-Atlantic region of the US.
Outlets feature an ever-changing variety of apparel, outdoor gear, home goods and more all at
discount prices. These products include discontinued and slightly irregular items and overstocks.
International Business
L.L.Bean opened its first international retail store in Tokyo, Japan, in 1992 and now operates 19
retail stores and outlets in several cities in Japan. In September 2008, L.L.Bean opened its first store
in China. By the end of 2013, L.L.Bean had opened a total of 53 stores China and expects that
number to grow. There is also a large and growing customer base in Canada. L.L.Bean catalogs are
sent to over 170 countries.
Outdoor Adventures
Celebrating its 35th anniversary in 2014, L.L.Bean outdoor discovery schools provide an opportunity
for customers to learn new skills and enjoy outdoor activities at an affordable price, with $25
Discovery Series adventures, instructional courses and guided tours near the company's retail
stores. L.L.Bean Outdoor Discovery Schools also offer a variety of courses, guided tours and
multiday trips near the flagship store in Maine. Outdoor adventures include activities such as
kayaking, stand-up paddleboarding, fly casting, clay shooting, archery, biking and canoeing. We also
offer wilderness first-aid and guide preparation courses, plus Custom Adventures for groups or
individuals, with group rates available. In 2013, we began offering Kids Camps and have added
more options for 2014. We also offer free clinics, speakers and outings through our retail stores.
Over 100,000 people participated in L.L.Bean's Outdoor Discovery Schools in 2013. Recently, we've
made it even easier to sign up for an adventure by providing customers with the ability to browse
and book courses online.
Distribution
In 2007, the ability to fill customer orders was improved with the expansion of the technologically
advanced Order Fulfillment Centers in Freeport, Maine. Our fulfillment centers, with the capacity to
store over 10 million units of merchandise and to process an average of 50,000 customer orders a
day, represent a familiar L.L.Bean goal: the best in customer service. In 2013, L.L.Bean shipped
over 15 million packages including over 1 million packages during its busiest week.
Manufacturing
Continuing the tradition, L.L.Bean still manufactures old favorites such as Bean Boots by L.L.Bean,
the Maine Hunting Shoe and the boat and tote bag, as well as newer items. The L.L.Bean
manufacturing facilities, located in Brunswick and Lewiston, Maine, employed nearly 300 people in
2013.
L.L.Bean is a leader in the manufacturing industry with regard to product quality, ergonomics and
health and safety programs. The Brunswick facility has received the Margaret Chase Smith Quality

Award for its commitment to quality. The L.L.Bean manufacturing division has achieved OSHA's
prestigious Voluntary Protection Program (VPP) status for making safety and health a top priority in
the workplace.
Company president Chris McCormick remains committed to preserving the company's
manufacturing foundation. He said, "Manufacturing is where L.L.Bean started and our people take
great pride in continuing this tradition, using the finest materials along with years of experience in
quality craftsmanship
The iconic retailer has revamped its inventory practices to support a multi-channel selling strategy.
The result: less overstock of seasonal inventory, more of the products its customers buy all year long,
and a reduction in warehousing costs.
As it approaches its 100th anniversary, L.L. Bean Inc. is not the same type of retailer it was a century ago. The
company started out as a manufacturer and seller of hunting boots, became a catalog merchant, branched into retail
store sales, and now is involved in online retailing. Its evolution has prompted L.L. Bean, based in Freeport, Maine,
USA, to modify its supply chain to reflect the many ways it does business today.
Five years ago, it became apparent that L.L. Bean's existing fulfillment strategy was causing inventory levels to rise.
That led the company to take a hard look at its inventory and distribution practices.
The iconic retailer has since revamped its inventory policies with multi-channel sales in mind. A better understanding
of product lifecycles together with improved forecasting helped it reduce overstocks of seasonal inventory, improve
availability of products customers buy all year long, and reduce warehousing costs.

It all started with a boot

The story goes that Leon Leonwood Bean came back from a hunting trip unhappy because of his cold, damp feet.
Bean hit upon the idea of stitching leather uppers to workmen's rubber boots to create more comfortable, waterresistant footwear for tramping through the Maine woods. In 1912 he founded the company bearing his name to sell
his unique "Maine Hunting Shoe," working out of the basement of his brother's apparel shop.
A century later, the company still sells the original hunting boot (a 16-foot sculpture of one stands outside its flagship
store in Freeport). Today L.L. Bean also offers hundreds of other products, including apparel for men, women, and
children, footwear, and, of course, outdoor gear for camping, fishing, hiking, and other sports. Sales reached about US
$1.5 billion in 2010.
L.L. Bean still produces its signature boots in the United States. It has two manufacturing facilities in Maine that
make boots and tote bags and perform some customization of other manufactured products. Although the retailer
sources 10 percent to 12 percent of its merchandise in the United States, the rest of its goods are made in Asia and
Europe. "We try to source as close as we can (to Maine) where it makes economic sense to do so," says Vice President
for Fulfillment Mike Perkins.

Sales channels expand

Over the course of nearly 100 years, L.L. Bean has diversified its sales channels. When Leon Leonwood Bean founded

the company in 1912, he sold his boot through mail solicitation, which evolved into a catalog operation. Five years
after starting the company, Bean opened a retail store in Freeport, Maine, which still exists today as part of a sevenacre retail campus.
Over the last two decades, L.L. Bean has expanded its retail presence at home and abroad. Currently it has 33 retail
and outlet stores in the United States, located in the Northeast as well as in the Chicago area. The company opened its
first international retail store in Tokyo, Japan, in 1992 and now operates dozens of stores in Japan and China. In
addition, L.L. Bean sells online worldwide and mails its catalogs to customers in more than 160 countries.
Several years ago, the company separated its retail store and direct-to-customer fulfillment operations. Since then,
L.L. Bean has operated two distribution centers (DCs), both in Freeportone for retail, the other for catalog and
online sales. "We wanted retail to own their inventory to do a better job of forecasting and sourcing product to the
stores," says Perkins. "That's why we went down the road of two distinct inventory pools."
Shipping is also handled differently for each channel. Although customers who place orders online or through a
catalog can select their preferred delivery method, about 90 percent of all direct-sales merchandise is shipped from
Freeport by UPS, Perkins says. As for the retail outlets, L.L. Bean operates its own private fleet to supply its stores in
the states of Maine, Massachusetts, and New Hampshire. It uses a variety of less-than-truckload carriers to serve its
remaining stores in other parts of the country.

Too much seasonal inventory

In 2007, as L.L. Bean's Internet sales and retail network began to expand, the company decided to examine its
distribution network to determine whether it could increase throughput capacity and avoid having to invest in a new
distribution center. "Our fulfillment capacity was being challenged and we knew we were a couple years away from
needing to do something," says Perkins. "We didn't want to invest more money in warehouse space when we could be
investing that money in retail stores."
L.L. Bean worked with the consulting firm Fortna, which conducted a distribution network analysis. Philip Quartel, a
Fortna consultant who worked on that project, says that the analysis encompassed transportation, capacity,
inventory, distribution operations, stock-keeping units (SKUs), systems capabilities, and the impacts of any proposed
changes on the overall business. Fortna analyzed data for more than 200,000 SKUs and more than 40 million order
lines, which represented a year's worth of online, catalog, retail store, and businessto- business transactions. "Fortna
looked at Bean from a service perspective and cost perspective, and at drivers like SKU counts, item variability,
seasonality, and peak versus average days," Perkins recalls. "They took the system apart."
One of the most important findings was that the company's inventory levels were much too high. "They were carrying
a bunch of inventory out of season in large quantities," Quartel observes. "Some of the SKUs were not [generating
enough revenue to cover] the cost of handling them."
This discovery indicated that a different approach to inventory management was in order. "They needed to align
inventory policy to service requirements," Quartel says. The solution, he explains, was to develop an end-to-end
product lifecycle strategy that would segment demand and adjust inventory accordingly. "Based on the fact that
certain SKUs did not require [a very high] fill rate and others would have a higher fill rate requirement, L.L. Bean
could adjust their inventory position ... by determining the proper service level or fill rate per SKU," he says.

Core and non-core products

Fortna recommended that L.L. Bean segment its stock into "core" and "non-core" items. Core items are those for
which there is fairly consistent demand all year. "Core inventory would be defined as things you don't want to be out
of," says Perkins. "Core inventory in retail includes boots and denim jeans, which sell year 'round, day in and day out."
Non-core items, for the most part, included seasonal products, such as fleece jackets and snowshoes. L.L. Bean
established a sales and inventory lifecycle for those items. As the season for a particular item winds down, it reduces
the stock on hand and holds back on placing additional orders. "If it's snowing outside, toboggans are popular in the
Northeast," Perkins says. "Around March, you don't want a lot of toboggans hanging around." To liquidate seasonal
products, L.L. Bean advertises specials online and offers in-store price reductions. (The company does not have a
lifecycle for core items.)
The company had an unusual problem when it came to rationalizing SKUs. Unlike some other retailers, L.L. Bean
could not simply eliminate all of its slow sellers. Because the company has established its reputation as a provider of
outdoor equipment for sportsmen, Perkins says, it has to carry certain products, such as jackknives, despite low sales
volumes.
But the retailer could reduce the amount of stock it holds for these essential but slow-selling items and focus on
carrying more core products. To help it optimize its inventory holdings and get the right mix of stock, L.L. Bean uses a
software application it developed in-house to examine each item's profitability within the context of its lifecycle.
"The tool looks at all costs in providing profitability views," says Perkins. But, he adds, the retailer does not rely on
this software exclusively to make decisions because "we have some items that may not be as profitable as others but
are needed to round out our offerings to customers."

Same variety, less space

The results of the distribution network study led to some big changes in L.L. Bean's warehouse operations. As part of
its lifecycle-based inventory strategy, the retailer has expanded its use of continuous replenishment. In the past,
Perkins says, the company had done some continuous replenishment but often ordered large quantities of an item to
keep in stock during a selling season. Now it is receiving smaller, more frequent shipments as needed from more of its
suppliers.
The company also cut down on the amount of merchandise preparation that's done in its warehouse and instead
began shifting that responsibility to its suppliers. How merchandise is prepared for sale depends on the sales channel.
Consider a shirt as an example. If the shirt is intended for sale in a retail store, it will arrive at the retail distribution
center folded in such a way that it will fit on a store shelf, bearing a price tag and an adhesive strip indicating the size.
A shirt intended for online sale, by contrast, will arrive at the direct-to-customer DC with collar stiffeners and pins,
which prevent the shirt from wrinkling during handling, shipping, and delivery.
Although L. L. Bean realizes that it costs more to maintain two inventory pools, it's sticking with that approach for
now. "We understand that there's a cost involved with separate inventories, but we don't want to do a lot of the prep
work ourselves," says Perkins.
As a result of having a better handle on its inventory mix and quantities, L.L. Bean has been able to avoid the need to
construct another distribution center. In fact, the company has done so well in this regard, Perkins says, that this year

it was able to close a 150,000- square-foot warehouse that it had leased for extra space for the past 20 years. The
storage from the leased building was absorbed into the two main distribution centers.ding was absorbed into the two
main distribution centers.
Focusing on product lifecycles does not mean that L.L. Bean carries less variety than it did in the past. Instead, it
adjusts the amounts in stock to better match anticipated sales. In fact, thanks to targeted, more precise management
of its stock, the retailer is now able to fulfill customer orders across multiple sales channels with little or no excess
inventory. "We have a selling strategy to make sure that the customer gets what he or she wants, when he or she
wants it," says Perkins, "but we don't want to be warehousing it when the season is over."