Case study: Sprint helps PETCO put a leash on technology costs

Headquartered in San Diego, Calif., PETCO Animal Supplies is a leading pet specialty retailer that provides the products, services and advice that make it easier for its customers to be great pet parents. Since the fi rst store opened in 1965, the company has been dedicated to providing animal lovers with the supplies and services needed to take care of their pets. With over 1,000 retail locations across all 50 states, PETCO’s 22,000 employees drive annual revenue of more than $2.5 billion.
Challenge</span
Due to the current economic climate, PETCO, like many other companies, was looking for every possible way to contain its information technology operational costs. One lingering pain point for the company was the monthly cost of telecommunications for back-up Local Exchange Carrier (LEC) connections at their distribution and retail locations, which were rarely used for data connectivity.
In the event of the primary connections being unavailable, some IT systems would not operate on dial backup, leaving certain job functions unable to be completed. Processes that could operate on dial backup suffered from slower performance, negatively impacting productivity. If there were issues with the dedicated modem line, store personnel would have to fi nd another working phone line nearby, often using the fax line. Coupling the loss of employee productivity with the high cost of a dedicated, rarely used modem line caused the company to look for a reliable and cost-effective solution.
Solution
After considering multiple (other) providers, based on existing relationships, PETCO turned to Sprint in June of 2009 to take on the challenge to provide a comprehensive solution that addressed a number of complex requirements. By handling the staging, testing, project management, specialized fulfi llment services, coverage enhancements and on-site installation, the solution provided by Sprint improved the performance and connectivity at each location while minimizing the impact to daily operations during the three-month rollout.
With EVDO data services, router hardware and Sprint onsite technical support, PETCO’s employees are now able to spend far less time troubleshooting backup connectivity and focus on providing a great customer experience. The hardware was integrated with the existing routers providing enhanced management capabilities not previously available. This improved the company’s ability to ensure availability of the Wireless Wide Area Network (WWAN) and monitor coverage and performance.
Bottom line
By implementing the Sprint solution, PETCO has been able to reduce IT operational costs by removing a dedicated analog modem line at every location, saving the additional monthly cost across the entire chain. In addition to containing IT costs, employee productivity has improved due to the new wireless backup connectivity that provided all PETCO stores with full functionality should the primary T1 connection be unavailable.