Case Study Ann Taylor Uses Intelligent Network Infrastructure to Connect Hundreds of Nationwide Locations and Facilitate Rapid Growth U.S.-based apparel retailer Ann Taylor is using Cisco® networking technology to improve service and increase sales at hundreds of stores across the country. The reliability, versatility, and scalability of the Cisco network infrastructure is helping the company to better integrate its sales channels and transform retail locations into more efficient, unified operations. Background the company over the next decade. To Ann Taylor is a billion-dollar apparel continue differentiating itself as a customer retailer dedicated to providing modern service leader, management knew that all professional women with fashionable Ann Taylor stores and sales channels would career and leisure attire. Headquartered in need to be more closely connected and New York City, the company operates more efficient than ever before. And the than 600 Ann Taylor, Ann Taylor Loft, and company’s existing business systems and Ann Taylor Factory stores across the United networks were simply not up to the task. States and in Puerto Rico. Under the old system, stores received Ann Taylor recently embarked on an nationwide sales and inventory data that aggressive growth plan, expanding from was frequently out of date or incomplete. If 400 to 600 stores in just three years. The a sales associate wanted to find an long-term success of this expansion depends out-of-stock garment at another store, for directly on the company’s ability to example, the system could not be relied on accurately track sales and inventory to provide accurate, real-time information. information across the entire enterprise, The associate had to manually call that integrate sales efforts from multiple store to have someone verify that the channels, and rapidly deploy information garment was indeed on the sales floor. systems to new and existing stores. Ann Taylor also wanted to implement several new services to reduce credit card Challenge costs and enhance revenue. But to make the Despite operating small, high-end program work, the company needed to boutiques with relatively small staffs, Ann support instant application and approval Taylor has thrived for nearly half a century systems and secure communications with by providing its customers with superior the corporate data center. The company clothing and customer service. However, also wanted to better integrate its online the company’s executive team was not sales channel with its stores. satisfied to simply maintain the status quo, and wanted to aggressively grow the size of Cisco Systems, Inc. All contents are Copyright © 1992–2003 Cisco Systems, Inc. All rights reserved. Important Notices and Privacy Statement. Page 1 of 4 “We’re more than happy with the Cisco solution, we’ve been very pleasantly surprised. The throughput we’re getting, the response time, the reliability, the uptime, have all exceeded expectations. It’s been a real benefit for the company.” --Tom Pane, Vice President of Technology Services, Ann Taylor Cost was also a concern. To reduce network complexity and networking. So we’re not dependent on any one technology, and no maintenance costs, the solution needed to be based on consistent problem with any one component will slow us down from equipment at all stores, throughout the multiyear expansion plan. implementing this solution or maintaining it over time.” The new system would also need to support rapid rollout to meet Working with Manchester Technologies, Ann Taylor determined Ann Taylor’s goal—deployment at all 600 stores in the first half of that virtual private networking (VPN) technology offered the 2003. necessary combination of performance, reliability, and Finally, the new system had to be highly scalable. Whereas the initial cost-effectiveness to meet the company’s aggressive expansion goals. deployment would focus on data, the company envisioned adding Using Cisco network routers with VPN capability, the company voice, video, and other network services at a later date. The solution could securely extend all applications and services to its nationwide needed to be flexible enough to accommodate these enhancements retail locations over the Internet—eliminating the need to run costly without a massive equipment upgrade. dedicated lines to every location. At the company’s main office in New York, Ann Taylor deployed Solution two Cisco 3745 multiservice access routers and a Cisco 7204 Router Ann Taylor’s Information Services team worked with reseller to terminate three redundant Internet connections. The Cisco Manchester Technologies to help them select the right solution to routers deliver the reliability and performance to extend sales, meet their goals. Together, they developed a multifaceted solution inventory, and fulfillment systems to locations across the country, incorporating an intranet, e-mail, online sales and fulfillment and the versatility to support new services that the company may systems, a credit switch and credit card clearing system, and deploy in the future, including enhanced voice and video. VPN nationwide inventory and sales performance applications. The tunnels to all stores in the network are managed by a Cisco 7206 company knew that its network infrastructure needed to provide an Router running the Cisco IOS® Software VPN feature set. extraordinary level of reliability, security, and performance to make The company uses DSL to connect most stores to the network, with the most of these new services. After exploring several options, Ann the exception of their largest locations, which use Frame Relay lines. Taylor chose Cisco networking technologies to support the entire Because reliability and uptime are critical when serving customers, solution. each store maintains three separate VPN tunnels in failover mode Many of the competing network equipment providers that Ann and a dialup line for backup. Cisco 1710 security access routers or Taylor evaluated were locked into a specific technology—such as 1721 modular access routers at each store terminate the VPN Frame Relay or Multiprotocol Label Switching (MPLS)—or were connections. These routers were designed specifically for branch constantly revamping their product lines and rendering older locations, and deliver the necessary security and performance while equipment obsolete. The more scalable, standards-based Cisco easily accommodating multiple Internet and network services. The network technologies offered the greatest flexibility and consistency Cisco routing/VPN platform also ensures maximum reliability and in the short and long terms. performance by using multiple VPN tunnels configured in failover “We wanted a network that could grow, that could allow us to mode and advanced quality-of-service (QoS) technology to implement new services, see how they impact the bottom line, and prioritize credit card authorizations and other mission-critical data then adjust the solution as we went along,” says Tom Pane, the communications. company’s vice president of Technology Services. “With Cisco, our whole design is agnostic. We can support cable, we can support wireless, we can support frame—we can even support point-to-point Cisco Systems, Inc. All contents are Copyright © 1992–2003 Cisco Systems, Inc. All rights reserved. Important Notices and Privacy Statement. Page 2 of 4 The Results “We rolled out the solution to forty stores a week over a period of The Cisco network infrastructure has provided Ann Taylor with four months,” says Pane. “Cisco and Manchester were there for us superior reliability and performance, allowing the company to throughout the entire process. I can’t tell you enough good things rapidly implement the full suite of retail technology solutions and about what they did for Ann Taylor. I don’t think we would have complete the rollout to 600 retail stores in just four months. been able to do it if we’d worked with any other vendor.” “We’re more than happy with the solution, we’ve been very pleasantly surprised,” says Pane. “The throughput we’re getting, the Next Steps response time, the reliability, the uptime have all exceeded In the coming years, Ann Taylor plans to continue adding new stores expectations. It’s been a real benefit for the company.” and expanding the network. The company is also exploring a Using the new inventory system, sales clerks can now access accurate, real-time information about all merchandise across the country, and directly interface with the Ann Taylor Website from any retail location. Now, sales associates can put merchandise at another Ann Taylor location on hold for a customer, transfer items between stores, or have garments shipped directly to the customer’s home. The Cisco network infrastructure delivers the performance to support the entire data and voice system in real time—even over the number of new applications and services that will further enhance efficiency and performance, such as IP Communications. Currently, Ann Taylor is piloting a Cisco IP Telephony solution that will move phone communications between stores onto the Internet, eliminating toll and long-distance costs for store-to-store calls. By using Cisco 1700 Series routers at all stores, the company is uniquely equipped to accommodate these new services without a substantial equipment upgrade. As part of the Cisco Full Service solution, the Cisco 1721 Series Internet. Ann Taylor’s sales performance application is also providing substantial benefits. Store managers can now examine sales data and trends in real time, and update merchandise displays to make popular items and accessories easier to find. The company has seen sales spike at all locations where the new system has been deployed. routers provide native support for data, voice, video, security, and VPN in a single, integrated platform designed specifically for branch offices. Rather than deploy new IP Communications network hardware, Ann Taylor can simply add an IP telephony module to transform the existing store routers into all-in-one voice and data gateways. The Full Service solution routers will also enable the Using the company intranet, store managers can also access company to add video, security, and other network services in the up-to-date forms and operations manuals, and use e-mail to stay future the same way, maximizing long-term network investment. better connected with the company headquarters. The new system has also reduced costs by eliminating paper-based reporting and communications. For example, Ann Taylor now uses its intranet to deliver seasonal style books to stores—instead of spending a great deal of money to distribute these materials on paper. Contact: Tom Pane Tom_Pane@anntaylor.com By choosing industry-leading Cisco technology to provide its network infrastructure—instead of going with a lower-profile, proprietary technology—Ann Taylor is also saving money on network support and maintenance. “The ubiquity of Cisco has been a huge benefit for us,” says Pane. “We’re using the industry standard approach, and there’s a large pool of people who can speak Cisco IOS Software, who have done Cisco VPN. That was something the competing vendors just couldn’t offer.” Ultimately, Cisco offered the only solution that could deliver the reliability, performance, and long-term consistency to support Ann Taylor’s rapid rollout requirements as well as its long-term expansion goals. Cisco and Manchester also provided the expertise to help Ann Taylor at every step in the deployment process. Cisco Systems, Inc. All contents are Copyright © 1992–2003 Cisco Systems, Inc. All rights reserved. Important Notices and Privacy Statement. 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