Mervyns for Best Implementation of the Year |
Mervyns LLC, headquartered in the San Francisco Bay Area, is a family-friendly promotional neighborhood department store offering trend-right fashions and home décor for the entire family at affordable prices. With 189 locations in 10 states, Mervyns has a well-earned reputation for its extensive selection of national and private-label fashions and housewares.
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| Primary Business Challenge: |
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Mervyns wanted to create and implement an entirely new IT infrastructure in less than one year. The project, called MARS, had to be completed on or before August 28, 2006. The high level scope included:
- Application Conversions: Complete replacement of and data conversion from all 529 legacy applications.
- Data Center Build: Complete build-out and transformation of existing “server room” into a fully functional data center that will house all application servers and core networking hardware.
- IT Infrastructure / Core Network Build: Complete architecture update to build-out of a new LAN/WAN (HQ, stores, and distribution centers) and the required supporting tools.
- POS Replacement: Replace obsolete store register systems (hardware and software).
- PC Image Refresh: Design Mervyns “gold image” and apply to all PCs in HQ, stores and distribution centers.
- IT Organizational Design & Development: Transform the existing team of 10 HQ desktop support staff into a full IT department of approximately 75-80 Full Time Equivalents (FTEs).
- Change Management: Communicate and train all affected team members; assist the Merchandising departments with organizational and role definition.
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| The enabling JDA Solution: |
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- Merchandise Management System® (MMS)
- Performance Analysis by IDEAS™
- JDA Allocation ™
- Advanced Warehouse Replenishment by E3® (AWR)
- Advanced Store Replenishment by E3® (ASR)
- Seasonal Profiling™ (SP)
- Performance Analysis Web by Arthur™ (PA Web)
- Arthur Knowledge Base™ (AKB)
- Merchandise Planning by Arthur™
- Demand Planning by Intellect™ (DPI)
- Assortment Planning by Arthur™
- Intactix Knowledge Base (IKB)
- Space Planning by Intactix™
- Floor Planning by Intactix™
- Workforce Management™
- JDA Advertising™
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| Real Results: |
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All of Mervyns 400 store systems were replaced in under 12 months – on time and on budget – breaking all retail records.
Even with the short time frame since implementation was completed, real impact and ROI can already be calculated in two areas. The first is a 50% reduction in IT operation cost realized by implementing JDA’s enterprise software, when compared to the initial approach of replicating the legacy systems. The second is 40% reduction of the resources needed to support the allocation activity. |
| Challenges to overcome and achieve success: |
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The greatest difficulties were access to and control of the legacy data from the former parent company, and defining the plan and dependencies for achieving the multiple critical paths of hardware, applications, data and people. |
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Tree of Life for Best in Allocation/Replenishment |
Tree of Life is the nation's leading distributor of natural, organic, specialty, ethnic and gourmet food products. Tree of Life has helped thousands of retailers, from the largest supermarket chains to the smallest independent stores, meet the constantly growing demand for products that help Americans to “live well.”
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| Primary Business Challenge: |
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Tree of Life's buying system lacked the ability to enter plans or bookings, or to automatically adjust for leaTree of Life’s buying system lacked the ability to enter plans or bookings, or to automatically adjust for lead-time changes. The company’s procurement process had a very narrow view of what inventory was needed and when it was needed. These weaknesses caused lower than acceptable fill rates and higher than acceptable inventory levels. |
| The enabling JDA Solution: |
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JDA’s Advanced Warehouse Replenishment by E3® solution supported the company’s transition from a regional to a national procurement structure. Tree of Life also uses JDA Fleet Management powered by Manugistics® solution to manage the many inbound trucks headed for the company’s DCs, as well as Space Planning by Intactix® to manage a wide variety of categories. |
| Real Results: |
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- Reduced inventory by 16% since the beginning of 2006
- Increased fill rates by more than 4%
- Streamlined business processes: Headcount reduction of 20% since beginning of 2006
- Improved forecast accuracy
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| Benefits from a consumer standpoint: |
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The customer satisfaction level was greatly improved due to the improved fill rate (4%), as well as improved inventory integrity (the right product, at the right place, at the right time). Utilizing the software also helped to reduce overstock, which in turn, guaranteed fresher product to the customer.
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| Challenges to overcome and achieve success: |
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Tree of Life experienced many challenges over the six years that they have had AWR and Manugistics installed. The major challenges were process and people related, which greatly affected how the technology performed. In 2005, a major reorganization occurred which allowed the company to update processes, upgrade the skill level of the people and re-emphasize the importance of the technology. With the full support of the executive team, the entire procurement staff was retrained, additional usage of AWR was implemented and a stronger partnership with the inbound transportation department was formed. Overcoming those challenges was the key to the improvements realized. |
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KappAhl for Best in Allocation/Replenishment |
KappAhl is a leading Nordic fashion chain with about 270 stores in Sweden, Norway, Finland and Poland. The company's mission statement is to offer value-for-money fashion with a wide appeal. KappAhl designs, markets and sells clothes for the entire family, but its primary target group is women aged 30 to 50 who buy for the entire family. KappAhl’s vision is to become the leading and most profitable fashion chain in the Nordic countries for this customer segment.
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| Primary Business Challenge: |
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The goal of the project was to implement an automated allocation process for four different countries in both initial allocations and the replenishment processes. The legacy solution was already automated but did not provide the flexibility and ability to work at a lower level required to improve allocation. This led to a search for the best-of-breed application. The expectations were the following:
- Auto allocation and manual allocation for exceptions using specific and flexible methods
- Integrated various elements in the allocations methods:
- Subclass/size historical information
- Quarterly or periodic budget information
- Store climate
- Store stock level by subclasses
- Model Stock (target and threshold)
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| The enabling JDA Solution: |
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JDA Allocation™ |
| Real Results: |
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- 90% of allocation is performed unattended during the night (80% of cross-dock flows and 100% replenishment)
- 20% better precision, verified through better size compliance with local demand despite pack allocation
- Expected increased gross profit by 1.2% per year, thanks to the precision improvements
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| Benefits from a consumer standpoint: |
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The consumer will benefit from increased product availability in the store. |
| Challenges to overcome and achieve success: |
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The Allocation project turned out to be one of KappAhl’s top software implementations.. The go-live went very smoothly and since then, no single style/color has gone to the wrong store.
This was achieved by anticipating two potential difficulties:
- Good visibility from the business point of view of what the solution can provide thanks to CRPs and reference visits
- Dealing with interfaces with multiple host systems (purchasing, warehouse, shipment, etc.) by planning an important test period and a strong rollout strategy.
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Tractor Supply Company for Best in Category Management |
Tractor Supply Company is the largest retail farm and ranch store chain in the United States. The company operates more than 676 retail stores in 37 states and one Canadian province, employs more than 7,800 team members and is headquartered in Brentwood, Tenn.
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| Primary Business Challenge: |
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The space planning process was burdened by its manual and static process. Planograms were drawn using Pegman and were communicated to the field by hardcopy or email using MSWord or Excel. Plan-o-grams were systemically “stand alone” within the company and stored on individual hard drives and there was no connection with any other enterprise system. Although not store specific nor necessarily aligned with replenishment, each stores was relied upon to ‘pick’ the right plan from the multiple versions sent.This resulted in out of stocks, overstocks, less appealing shopping environments, and more. The problem created store labor waste, a high percentage of discontinued items and planograms, no weights and measures controls, no ability to ensure best space usage or manage category strategy. Planograms were not linked to product and therefore stores did not receive correct product or product quantity. |
| The enabling JDA Solution: |
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JDA Space Planning by Intactix®, Intactix Knowledge Base™, Floor Planning by Intactix®, Space Automation by Intactix® and support from the JDA Consulting Team. |
| Real Results: |
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- Reduced store labor by 30%
- Changes are now completed more efficiently, allowing for the company to move faster which in turn drives sales
- The IKB environment has allowed efficient shelf label printing in order to match planograms and pass product dimensions to enterprise systems for maximizing logistics planning (truck cube).
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| Benefits from a consumer standpoint: |
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By using store clustering with the planograms, not only are customers seeing products that are more aligned with their market, but the presentation of the product better aligns with the product actually being replenished, giving them a better shopping experience and the appearance of better in-stocks. |
| Challenges to overcome and achieve success: |
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The biggest internal challenge was to build sufficient momentum for the change. To go from having strictly stand-alone planograms, to a complete, dynamic JDA Intactix environment, Tractor Supply now collaborates across multiple functional teams to drive shelf labels, truck buildings, space analysis, replenishment listing/delisting for the stores, and more. The implementation of the solutions and the support from JDA throughout the implementation was efficient and smooth. |
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BJ’s Wholesale Club and Pharmavite for Best in Collaboration |
Headquartered in Natick, Massachusetts, BJ's Wholesale Club, Inc. is a leading operator of warehouse clubs in the eastern United States. The Company currently operates 173 Clubs and 96 gas stations in 16 states.
Pharmavite is a leading manufacturer of vitamin and supplement brands including Nature Made®, Nature’s Resource® and Olay® Vitamins. Pharmavite’s production facilities include more than 600,000 square feet of manufacturing, packaging, distribution, and research and development space. Its manufacturing team produces 11.5 billion tablets, capsules and soft-gels annually and Pharmavite’s distribution center will ship more than 35,000 shipments per year to both domestic and international customers.
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| Primary Business Challenge: |
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BJ’s: Stacey Hurd, BJ's assistant vice president, supply chain integration and financial control states, “Our primary challenge is to have the right product at the right time in the right quantity to meet customer demand.”
Art Karrer, manager of customer collaborative processes for Pharmavite LLC, stated, “Our challenge was how to be a better supplier for BJ’s as well as for our consumers. A huge driver for this was delivering our product on time and to the right BJ’s club. We needed direct visibility into BJ’s system to be better prepared for any changes in items or quantities. We also needed a streamlined process for introducing new items.” |
| The enabling JDA Solution: |
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JDA Marketplace Replenish™ and Advanced Store Replenishment by E3® |
| Real Results: |
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- 29.9% reduction in weeks of on hand inventory
- 23.8% increase in comp club sales
- 31.7% decrease in comp club inventory on average per week
- 4.5% increase in orders delivered on or before the purchase order due date
- 3.9% increase in fill rates with performance now averaging 99.1%
- 97.8% average in forecast accuracy – within BJ’s acceptable range of 95 – 100%
- 99% in-stock at clubs maintained during first full year
- 42% increase in inventory turns
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| Benefits from a consumer standpoint: |
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The primary benefit to the consumer is that when they come to a BJ’s Club Store they are able to find the items they came to buy on the shelf. Consumers looking for new and innovative items are now able to shop for these items faster through the streamlined new item launch process facilitated through the collaboration. |
| Challenges to overcome and achieve success: |
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The fact that the BJ’s/Pharmavite program supports a robust volume of SKU’s escalates the difficulty of the implementation and ongoing management to a whole new level. A team of two ?one to review exceptions & forecasting and another person to execute ? handles 9,000 SKU/club combinations by exception management on a weekly basis. In fact, Pharmavite is the first supplier to work with BJ’s in this manner.
The success of this program has enabled the partners to address the challenging task of validating and verifying that all SKU’s are activated properly amongst the clubs while sharpening order execution to support seasonal sales surges in specific selling locations. For example, in a Cape Cod BJ’s club, Karrer recalls, “We were able to suggest additional orders to lift our position on key items and ensure that they were in-stock at the right levels.” |
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Tyson Foods, Inc for Best in Demand and Promotions Planning |
Tyson Foods, Inc. [NYSE: TSN], founded in 1935 with headquarters in Springdale, Arkansas, is the world’s largest processor and marketer of chicken, beef, and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500.
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| Primary Business Challenge: |
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To beef up visibility, gain a common view of demand and enable a collaborative S&OP process. |
| The enabling JDA Solution: |
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JDA’s Demand, Fulfillment, Strategy, Collaborate, Market Manager Solutions |
| Real Results: |
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- Forecast accuracy improvement: 10 - 15%, representing 2 - 3 million percentage point of inventory obsolescence
- Created a common view of demand between supply chain, sales and marketing
- Increased customer service levels
- Enabled S&OP processes
- Reduced significantly finished goods inventory
- Increased market responsiveness
- Integrated planning and execution
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| Benefits from a consumer standpoint: |
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Customers will benefit by improved availability of product assortments during regular seasons and promotions. |
| Challenges to overcome and achieve success: |
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This was a large and complex project rollout. The food processing business is complicated in nature with very low forecast accuracy with inherently complex production processes. Tyson rolled out the project from one business unit to the next with a focus on enabling a common view of demand and enabling a collaborative S&OP process to create the discipline required to make the streamlined business process and technology yield impressive ROI. |
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Swire Beverages for Best in Emerging Markets |
Swire Beverages manufactures, markets and distributes products of The Coca-Cola Co. in Hong Kong and Taiwan, as well as 11 states in the USA and seven provinces in Mainland China. This represents a total franchise population of more than 420 million consumers. Swire Beverages is recognized as one of a select group of strategic business partners of The Coca-Cola Co. known as the 'Anchor Bottlers'. Swire also works closely with The Coca-Cola Co. on brand development and marketing.
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| Primary Business Challenge: |
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The phenomenal growth of the Coca-Cola brand in China has put extreme demands throughout Swire’s entire Supply Chain. Swire Beverages is responsible for the bottling of all Coca-Cola beverage brands across China. The number one business challenge for Swire Beverages was how to cope with the forecasted growth of the business, and in turn the increased complexity of the products and Supply Chain. The Executive team realized that their business could implode if they did not successfully address the challenge. |
| The enabling JDA Solution: |
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JDA Demand, Collaborate, Strategy and Fulfillment powered by Manugistics® are used by a centralized Planning team to effectively manage the entire Supply Chain for eight bottling plants, in seven Provinces across China. JDA Sequencing™ is used at the Plant level to optimize the product mix of the individual bottling lines. |
| Real Results: |
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- Improved forecast accuracy by 7%
- Increased mechanical efficiency and asset utilization (+70%)
- Reduced stock holding by 50% (25 – 30 turns/annually)
- Process compliance across all operations
- “The Strategy tool had tremendous ‘hidden’ value and has become the critical enabling tool for ‘what if’ supply chain planning simulations and supporting new business start up requirements”
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| Benefits from a consumer standpoint: |
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The solutions supported the huge sales growth of the Coca-Cola brand across China. Consumers benefited from increased product availability because of the reduction in stock-outs and/or low inventory levels. |
| Challenges to overcome and achieve success: |
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Introducing Supply Chain “optimization” techniques into the fast developing market of China was the key challenge. Swire invested two years in upfront education, change management and organizational change to effectively set the stage for this project.
A practical approach to project management was adopted from the beginning. Some of the key elements of this approach were:
- Always apply the 80-20 rule to requests for functionality improvements
- Always closely monitor process compliance
- A dedicated full-time team on both sides was critical
- Be sympathetic to cultural needs but do not let this become the focus of the project
- Don’t leave any issue unresolved – work together until the issue is resolved
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Cadbury Schweppes for Best in ROI |
Cadbury Schweppes is the world's largest confectionery company and has strong regional beverage businesses in North America and Australia. With origins stretching back more than 200 years, today Cadbury Schweppes' products - which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around the world. The Group employs more than 70,000 people.
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| Primary Business Challenge: |
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The primary challenge was to create, merchandise and validate 959 Carbonated Soft Drink (CSD) planograms for 1,450+ stores in only 7 weeks. The space merchandising strategy incorporated a Days-of-Supply approach per SKU per store (versus space-to-sales) which maximizes space efficiencies, increases turns, decreases shelf inventory, reduces out-of-stocks and ultimately drives ROI. Space-to-sales does not take any of these into account but allocates space solely on volume share. |
| The enabling JDA Solution: |
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JDA Space Planning Plus by Intactix® and Space Automation Plus by Intactix® |
| Real Results: |
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There was impressive success in two key areas during the 3-year partnership as the CSD Category Captain for Target (fifth major project).
Time and Resource Savings:
- 2005 project: 79 minutes per planogram over an 11 week period with a team of 10 personnel
- 2006 project: 12 minutes per planogram over a 7 week period with a team of 2 personnel
- With increased reliability on the Space Automation Plus tool and the automation of many more tasks, we improved our process by 61 minutes per planogram. This directly contributed to our increased efficiency, productivity and reduction in man hours.
ROI Success with Planograms in Retail:
- Over a 3-year period: Cadbury Schweppes customer’s total CSD dollar sales has grown 27% and baseline sales by 36%
- For Cadbury Schweppes, CSD dollars sales growth was 66% and baseline sales 75%
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| Benefits from a consumer standpoint: |
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The Days of Supply Methodology gives consumers products that they want because it is based on demand. Each Manufacturer’s item is given the appropriate space it deserves based directly on the sales velocity of the product, therefore minimizing out of stocks on the shelf. |
| Challenges to overcome and achieve success: |
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- The wide and complex variety of product portfolios of Cadbury’s National Bottling network has a direct impact on product/package and availability within the store clustered planograms
- Five different data sources for 1450+ stores had to be integrated into one data repository for import-ready status for 959 planograms
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Vitamin Shoppe for Best in ROI |
Started in 1977, The Vitamin Shoppe opened its first store in New York City. Today, it is America’s most trusted resource and leading health retailer of vitamins and nutritional supplements, with more than 300 stores nationwide and aggressive plans for continued expansion.
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| Primary Business Challenge: |
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The company had heavily modified technology systems that did not appear to meet the business requirements; disconnected business processes and people; lagging turns, excess inventory, lack of visibility to the business (reporting), and poor inventory accuracy (replenishment, on-hand, demand capabilities). |
| The enabling JDA Solution: |
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Vitamin Shoppe chose JDA’s Business Process Optimization (BPO) around product lifecycle, business processes using JDA-MMS and Retail Ideas, as well as other connected technology. This was conducted during a four-week assessment and strategic workshops to cover business processes from the start of product lifecycle to the end (Planning, Item Creation, Item Maintenance, Vendor Set-up, Purchase Orders, Space Planning, Receiving, Put-away, Distribution, Replenishment, A/P Matching, Markdowns, and Inventory Controls). |
| Real Results: |
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Since the BPO recommendations were given by JDA, Vitamin Shoppe has seen the following benefits (over a nine-month period):
- 6% improvement in turn
- 6% improvement in service levels across all products
- 5% reduction in store inventory
- 2% improvement in store level inventory record accuracy
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| Benefits from a consumer standpoint: |
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Vitamin Shoppe is now able to have industry leading comp store sales by achieving more timely replenishment and having the right safety stock in the store. |
| Challenges to overcome and achieve success: |
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During the process, Vitamin Shoppe discovered employees were hesitate to talk about their everyday problems and acknowledge ongoing issues confronting them.
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Charlotte Russe for Best in Store Systems |
Charlotte Russe Holding, Inc. is a growing mall-based specialty retailer of fashionable, value-priced apparel and accessories targeting young women in their teens and twenties. At March 31, 2007 the Company operated 395 stores in 43 states and Puerto Rico. The Company expects to open at least 50 new stores in fiscal 2007.
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| Primary Business Challenge: |
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Charlotte Russe’s primary business challenge was to improve customer service, increase sales and reduce payroll expenses by upgrading in-store technology. |
| The enabling JDA Solution: |
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JDA Point-of-Sale™, JDA Back-Office System™, JDA Workforce Management™, JDA Customer Relationship Management™ |
| Real Results: |
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- 50% improvement in reduction of customer sales transaction time
- Closing process time dramatically decreased from 1.5 hours to 15 – 30 minutes
- Approximately $200,000 savings per year in cashier training
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| Benefits from a consumer standpoint: |
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Charlotte Russe customers will be checked out at a much faster rate and most likely will not have to wait in line. After the JDA Workforce Management implementation for payroll scheduling, Charlotte Russe expects customer service will improve through better associate coverage on the sales floor. |
| Challenges to overcome and achieve success: |
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As one of the first customers for the JDA applications, a major challenge could have been functionality and features. With commitment from JDA product and service teams, the difficulties and challenges were minimal and very well managed. |
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PetSmart for Best in Transportation Management |
PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company operates more than 908 pet stores in the United States and Canada, a growing number of in-store PetsHotel, cat and dog boarding facilities and is a leading online provider of pet supplies and pet care information.
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| Primary Business Challenge: |
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PetSmart engaged in a project to produce an integrated transportation plan that marries inbound and outbound movements for PetSmart’s dedicated fleet. The results included improved fleet utilization with the goal of reducing empty fleet miles and lower overall transportation costs. PetSmart and JDA jointly developed the business requirements in the spring of 2006. The 16-week project began in October 2006 with an initial proof-of-concept to confirm that the planned configuration could support the business requirements. After the initial go-live, the new solution was rolled out to all facilities in a two week period. |
| The enabling JDA Solution: |
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JDA Transportation & Logistics Management solutions including: Transport, Delivery Management, Carrier, Monitor and Freight Pay |
| Real Results: |
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- PetSmart estimates a $1 million savings with JDA solutions and believes it will far exceed that amount long term
- Improved solution quality from 50% to 95%
- Decreased fleet miles
- Created organizational synergy between inbound and outbound planning
- Transformed logistics planning from manual load-building to fully optimized load planning
- Streamlined decision support
- Eliminated carrier control over continuous move decisions
- Improved equipment utilization
- Lowered transportation costs
- Highlighted operational inefficiencies external to transportation (i.e., vendor operations)
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| Benefits from a consumer standpoint: |
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Upstream transportation planning and execution changes were seamless to the customer. The cost savings generated through this project will allow PetSmart to continue to offer competitive pricing to consumers for all their pets and petcare needs. |
| Challenges to overcome and achieve success: |
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Although continuous move planning has been talked about as a concept for many years and the technology has been available to support this business process for equally as long, few companies have been able to implement successfully the process in a fully automated manner like PetSmart. The flexibility of the Transport solution provided multiple alternatives to accomplish continuous move planning. Defining the business requirements up front enabled the project team to best match the solution configuration to the requirements without needing to evaluate all options. |
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