Petco is a leading pet care and retail business, operating in more than 1,500 locations across the US, Mexico, and Puerto Rico. Today, Petco has 131 shops, 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 the go-to for pet food and supplies, as well as on-site veterinary, grooming and training services. If you live in the region and have a pet, it’s likely 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 annually and steadily expanding its e-commerce operations to cater to the growing demand. However, as Petco faced the challenges of high growth and increased competition, it needed a technology platform that could keep up with its efforts to scale rapidly.
The Petco challenge
Petco processes tens of thousands of orders every day and runs distribution and logistics operations around the clock. The company relies on being able to connect its customers to the products and services they need, quickly and conveniently. With Petco depending on SAP systems to support operations end-to-end, and providing more personalized, real-time customer interactions, keeping up with the volume and velocity of new processes was too much for the existing infrastructure. Petco 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 commercial model, as well as software including SAP and services, such as Lenovo’s Advisory, Design, and Implementation Managed Services. The agility and scalability offered by TruScale aligned perfectly with Petco’s requirements and allowed it to create even more convenient, personalized experiences for every pet owner.
Guillermo Prieto, Technology & Systems Innovation Director at Petco Mexico, summed up the experience, “The entire process took about three months in all, and we were able to migrate a very complex environment with zero downtime or impact on operations. The fact that Lenovo jointly builds hardware to work properly with SAP has been a great advantage for us. The hardware and software have gotten along wonderfully and have truly made this a success story.”
Protecting customer data as well as pet health
Petco’s customers trust the business to take good care of the personal data provided to it, ranging from health records to dietary preferences. This means 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 robust security measures and commitment to safeguarding customer data. While public cloud was considered, Petco needed cloud-like flexibility on premises to meet its needs – which it found in Lenovo TruScale.
Standing out from the pack
As a nation, Mexico’s love of pets is second only to Argentina, with a reported 70% of households owning furry friends. As the Mexican pet industry continues to thrive – and with a well-established presence since its first bricks and mortar store opened in 2012 – Petco is well-placed to capitalize on the significant market opportunity.
However, Petco faced growing competition and recognized the need to adapt quickly to changing consumer behaviors, industry trends, and technological advancements. Lenovo TruScale provided the agility Petco needed, enabling the company to implement real-time solutions and stay ahead of the curve. The ability to swiftly respond to customer demands and market dynamics became a significant competitive advantage for Petco.
As well as more efficient operations, Petco also added new customer service features, such as tailored services based on a customer’s previous visits or sharing offers that aligned with products being used with their pets. These helped keep customers engaged and set Petco apart from its competition.
Pets and Profit: Scaling affordably
Petco’s growth trajectory demanded a scalable solution that minimized upfront costs while enabling increases in capacity. Lenovo TruScale offered a flexible service model, allowing Petco to scale its technological infrastructure in tandem with business expansion. This approach not only minimized 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 with Lenovo ThinkSystem DB620S SAN switches, Petco now benefits from the latest state-of-the-art infrastructure with the flexibility afforded by an as-a-Service model.
The impact on the company’s success cannot be underestimated. With 25,000 orders processed on Lenovo infrastructure daily, there has been a 10% increase in sales and a 20% increase in customer engagement for Petco.
Prieto shared more, “Our Lenovo partnership really transformed our business. This is a one-stop solution for us. With the help of partners like Lenovo, we’re able to constantly innovate and expand our offerings.”
As Petco continues to be a beacon for pet lovers in Mexico, Lenovo’s TruScale solution stands as a testament to the transformative power of technology in business growth. By prioritizing security, embracing agility, and providing scalability without heavy upfront costs, Lenovo has empowered Petco to navigate the challenges of a dynamic market successfully.
In a nation where pets are not just companions but cherished family members, Petco’s commitment to making life better for pets aligns seamlessly with Lenovo’s mission to empower businesses through innovative smart solutions. Together, Petco and Lenovo have forged a partnership that not only meets the demands of today but also anticipates the needs of tomorrow in the ever-evolving landscape of pet care.