Petco is a leading pet care and retail company, operating more than 1,500 locations in the US, Mexico and Puerto Rico. Today, Petco has 131 stores, two distribution centers and employs 3,500 people.
The company’s mission is simple – to improve the lives of pets and the people who love them. It’s ideal for pet food and supplies, as well as veterinary, grooming and training services. If you live in the area and have a pet, chances are you’ve visited a Petco store.
Thanks to the increase in pet ownership, Petco has become the retailer of choice for many, opening an average of 12 stores per year and steadily expanding its e-commerce business to meet growing demand. However, as Petco faced the challenges of high growth and increased competition, it needed a technology platform that could keep pace with its efforts to scale quickly.
The Petco Challenge
Petco processes tens of thousands of orders daily and operates around-the-clock distribution and logistics operations. The company is built on being able to connect its customers with the products and services they need, quickly and conveniently. With Petco dependent on SAP systems to support end-to-end operations and provide more personalized, real-time customer interactions, keeping up with the volume and speed of the new processes was too much for the existing infrastructure. Petko needed a change.
Working with local partner DCLOUD, a key player in providing cloud-based solutions, Lenovo helped Petco bring its vision to life. With Lenovo TruScale Infrastructure as a Service, Petco had access to the latest data center hardware through a flexible pay as you go business model, as well as software including SAP and services such as Lenovo’s Advisory, Design and Implementation Managed Services. The flexibility and scalability offered by TruScale perfectly aligned with Petco’s requirements and allowed it to create even more convenient, personalized experiences for every pet owner.
Guillermo Prieto, Director of Technology & Systems Innovation at Petco Mexico, summed up the experience: “The whole process took about three months in total and we were able to move to a very complex environment with zero downtime or impact on operations. The fact that Lenovo co-builds hardware to work properly with SAP has been a big plus for us. The hardware and software have done great and have really made a success story.”
Protection of customer data as well as pet health
Petco’s customers trust the company to take good care of the personal data provided to them, ranging from health records to dietary preferences. This meant that ensuring the highest standards of security and privacy was non-negotiable. Lenovo TruScale Infrastructure as a Service emerged as the most effective choice for Petco due to its strong security measures and commitment to safeguarding customer data. While the public cloud was considered, Petco needed on-premise cloud-like flexibility to meet its needs – which it found in Lenovo TruScale.
It stands out from the pack
As a nation, Mexico’s love of pets is second only to Argentina, by one report 70% of households owning furry friends. As the Mexican pet industry continues to grow – and with an established presence since opening its first brick and mortar store in 2012 – Petco is well positioned to capitalize on the significant market opportunity.
However, Petco faced increasing competition and recognized the need to quickly adapt to changing consumer behaviors, industry trends, and technological advances. Lenovo TruScale provided the agility Petco needed, allowing the company to implement real-time solutions and stay ahead of the curve. The ability to quickly respond to customer demands and market dynamics has become a major competitive advantage for Petco.
In addition to more efficient operations, Petco added new customer service features, such as customized services based on a customer’s previous visits or sharing offers that align with the products used with their pets. These helped maintain customer loyalty and set Petco apart from its competition.
Pets and profit: Scaling up at affordable prices
Petco’s growth trajectory required a scalable solution that minimized upfront costs while allowing capacity to grow. Lenovo TruScale offered a flexible service model, allowing Petco to expand its technology infrastructure as the business expanded. This approach not only minimized the initial financial investment, but also ensured that Petco could adapt its technological capabilities to meet changing needs.
Lenovo TruScale in action
With Lenovo TruScale Infrastructure as a Service, companies get access to the latest data center hardware through a flexible pay-as-you-go model. Built on Lenovo ThinkSystem SR650 V2 servers and Lenovo ThinkSystem DE4000H storage, connected to Lenovo ThinkSystem DB620S SAN switches, Petco now benefits from the latest state-of-the-art infrastructure with the flexibility of an as-a-Ser model.
The impact on the company’s success cannot be understated. By processing 25,000 orders on Lenovo’s infrastructure daily, there was a 10% increase in sales and a 20% increase in customer loyalty for Petco.
Prieto shared more, “Our partnership with Lenovo has truly changed our business. This is a one stop solution for us. With the help of partners like Lenovo, we are able to continuously innovate and expand our offerings.”
As Petco continues to be a beacon for pet lovers in Mexico, Lenovo’s TruScale solution is a testament to the transformative power of technology in business growth. By prioritizing security, embracing flexibility and providing scalability without heavy upfront costs, Lenovo has empowered Petco to successfully meet the challenges of a dynamic market.
In a nation where pets are not just companions but beloved members of the family, Petco’s commitment to making life better for pets aligns perfectly with Lenovo’s mission to empower businesses through innovative smart solutions. Together, Petco and Lenovo have forged a partnership that not only meets today’s demands but also anticipates tomorrow’s needs in the ever-evolving landscape of pet care.