Black & Decker Hardware and Home Improvement for Best in Supply Chain Planning
Black & Decker Hardware and Home Improvement (BDHHI) is a division of Black & Decker, a global manufacturer of quality home fixtures, accessories and improvement products. Black & Decker has established a reputation for product innovation, quality, end-user focus, design and value. The company's well-known brand names and new product development capabilities are recognized worldwide. |
| Primary Business Challenge: |
| | With a downturn in the economy and the housing market, Black & Decker Hardware & Home Improvement required a system that would enable it to quickly respond to shifts in volume and product mix, as well as increases in demand volatility. |
| The enabling JDA Solution: |
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- JDA© Demand
- JDA© Fulfillment
- JDA© Master Planning
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| Real Results: |
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- Improved forecast accuracy by 19 percentage points
- 11.4 percent reduction in finished goods inventory (against a 2.5 percent target)
- Continued service-level and fill-rate improvements
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| Benefits from a consumer standpoint: |
| BDHHI continues to deliver higher service levels and improved fill rates year-over-year to its big-box retailers, field sales and wholesale customers. |
| Achieving Success and Differentiating from the competition: |
| BDHHI continues to differentiate itself from its competitors. Its supply chain operations remain highly flexible and continue to deliver cost-cutting initiatives, inventory reductions and productivity improvements during the downturn in the economy. This is due to the company's people and systems that enable it to change and respond to fluctuations in the market. |
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House Foods Corporation for Best in Demand Management
House Foods Corporation is one of Japan's largest food manufacturers and brands. The company is well-known for its Japanese curry brands, Vermont Curry and Jawa Curry, and also manufactures Japanese snacks, noodles and soft drinks. Its subsidiary House Foods Corporation America is the largest provider of tofu products in the U.S. |
| Primary Business Challenge: |
| | House Foods' divisions lacked synchronization, functioning as separate entities supported by different systems. After incurring opportunity losses, out-of-stock increases and unnecessary bargain sales and disposal costs, the manufacturer realized it needed to clean house. |
| The enabling JDA Solution: |
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- JDA© Demand
- JDA© Fulfillment
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| Real Results: |
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- 39 percent decrease in inventory
- 40 percent reduction in disposal costs
- 50 percent reduction in unnecessary bargain sales costs
- 48 percent decrease in warehouse maintenance costs
- Reduced average days in inventory from 36 days to 22 days
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| Benefits from a consumer standpoint: |
| With improved order-fill rates, House Foods is able to maintain a variety of products for customers to choose from. The company has also improved its product freshness at the store by reducing its inventory levels and increasing stock turns. |
| Achieving Success and Differentiating from the competition: |
| House Foods has the ability to disclose the number of orders to material vendors on its Web site with the support of JDA's solutions for improved demand forecasting, manufacturing planning and inventory replenishment planning. Lowering operational costs by decreasing out-of-stocks, inventory and disposal rates enables House Foods to set itself apart from the competition. |
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Dr Pepper Snapple Group with Travel Centers of America for Best in Collaboration
Dr Pepper Snapple Group is one of North America's leading refreshment beverage companies, manufacturing, bottling and distributing more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. More than 75 percent of the company's overall volume is from brands that are either number-one or number-two in their flavor categories.
TravelCenters of America is the largest full-service travel center in the United States, serving professional drivers and motorists alike. The company operates more than 165 sites nationwide, offering diesel fuel and gasoline to full-service restaurants, lodging and nationally known fast-food restaurants. |
| Primary Business Challenge: |
| | TravelCenters of America needed a solid process and technology to planogram all of its stores for its entire cold-vault storage, including a new chain acquired in 2008 (Petro). The company partnered with Dr Pepper Snapple Group to install a solid planogram process with the support of Dr Pepper Snapple Group's Days of Supply space methodology and JDA's advanced Category Management solutions. |
| The enabling JDA Solution: |
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- JDA© Space Planning
- JDA© Intactix Knowledge Base
- JDA© Consulting Services
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| Real Results: |
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- TravelCenters of America can complete two planogram sets annually
- Sales growth of 2 to 3 percent, while competitors have shown a decline of 4 to 6 percent
- 7 to 9 percent decrease in inventory levels
- Improved stock position by more than 4 percent
- Planogram sets now account for beverage seasonality and remain optimized throughout the year
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| Benefits from a consumer standpoint: |
| Consumers benefit from consistent planogram sets with a greater degree of variety and assortment, reduced out-of-stocks and beverage segments organized to improve the shopping experience. As a result, both TravelCenters of America and Dr Pepper Snapple Group have experienced increased customer loyalty to their stores and products, respectively. |
| Achieving Success and Differentiating from the competition: |
| Dr Pepper Snapple Group and TravelCenters of America have set themselves apart from the competition with the ability to complete planogram sets twice a year to satisfy consumer seasonality needs. Most competitors complete planogram sets once a year. |
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Phillips-Van Heusen for Best in Replenishment/Allocation
Phillips-Van Heusen is the world's largest shirt company, owning brands such as Calvin Klein, Van Heusen, IZOD, Arrow, Bass and licenses brands such as Geoffrey Beene, BCBG Max Azria, Chaps, Sean John and Kenneth Cole New York. The retailer operates about 750 retail outlets throughout the U.S. |
| Primary Business Challenge: |
| | Phillips-Van Heusen needed to improve its merchandise size assortment in both replenishment items and initial fashion allocations to better fit the size-selling patterns of various stores. |
| The enabling JDA Solution: |
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| Real Results: |
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- Gross Margin lift of $1.7 million in first full year of implementation
- 8 percent reduction in inventory
- 14 percent increase in sales
- Increased in-stock rates from 92 to 98 percent
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| Benefits from a consumer standpoint: |
| The retailer improved its merchandise assortments by tailoring them to the size-selling pattern of each specific store location, which has resulted in an enhanced customer shopping experience. |
| Achieving Success and Differentiating from the competition: |
| Phillips-Van Heusen has positioned itself as a company that can customers can rely on to have the specific item - whether it's a shirt, slacks or underwear - they want in stock, leading to increased brand loyalty. |
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The Hershey Company for Best in Transportation & Logistics Management
The Hershey Company is the leading North American manufacturer of quality chocolate and non-chocolate confectionery and grocery products. The company exports to over 90 countries with net sales in excess of $4 billion. |
| Primary Business Challenge: |
| | The Hershey Company needed to increase efficiency of its transportation network and improve control of its inbound and outbound freight in order to expand continuous move opportunities in its network, as well as leverage increased transportation volume for improved pricing from its service providers. |
| The enabling JDA Solution: |
| Over the course of a two-phased project, Hershey implemented the following solutions to improve transportation management:
- JDA© Transportation Planning
- JDA© Monitor
- JDA© Freight Order Management
- JDA© Shipment Execution
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| Real Results: |
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- Reduced transportation costs
- Increased operational efficiencies via the expansion of continuous moves across the transportation network
- 400 percent decrease in transportation solver run time
- More than 30 percent Improvement in key planning metrics such as solution quality
- Improved load planning productivity
- Enhanced transportation planning reporting and decision-support tools
- Improved communication across the transportation network
- Enhanced carrier asset utilization
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| Benefits from a consumer standpoint: |
| The transportation efficiency that Hershey gained through collaboration and advanced optimization has allowed the company to operate at lower overall cost to both Hershey and its supplier partners while providing a high level of service to all stakeholders. As a result, consumers can count on lower (or stable) prices and better on-shelf availability. |
| Achieving Success and Differentiating from the competition: |
| In keeping with the company's mission statement of "bringing sweet moments of Hershey happiness to the world everyday," as well as its commitment of creating sustainable value to its shareholders, Hershey has achieved greater flexibility and agility in its transportation network. As a result, the company is truly consumer-driven, and is making better use of available capacity and carrier assets to deliver quality product at a lower overall cost with superior service. |
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Coca-Cola Enterprises for Best in Space & Category Management
Coca-Cola Enterprises is the largest bottler and distributor of non-alcoholic beverages in the world, representing 16 percent of The Coca-Cola Company's total global volume. Its portfolio encompasses a full range of beverage categories, including soft-drinks, energy drinks, still and sparkling waters, juices, fruit drinks, coffee-based beverages and teas. The beverage giant serves a population of 419 million, including approximately 81 percent of North Americans and the entire populations of Belgium, continental France, Great Britain, Luxembourg, Monaco and The Netherlands. |
| Primary Business Challenge: |
| | Coca-Cola Enterprises realized it needed a category management system that would evolve as technology changed. The company wanted to streamline its planogram process, deliver merchandising solutions that reflect differences across stores, as well as provide controlled quality checks on store-level planograms. |
| The enabling JDA Solution: |
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- JDA© CategoryAdvisor
- JDA© Space Planning
- JDA© Intactix Knowledge Base
- JDA© Intactix Knowledge Server
- JDA© Space Automation
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| Real Results: |
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- 2 percent lift in unit sales
- 2 percent positive impact on dollar sales
- 1.9 percent favorable impact on sparkling category volume
- 2.2 percent favorable impact on sparkling category sales
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| Benefits from a consumer standpoint: |
| With the support of JDA, Coca-Cola Enterprises is now able to provide targeted consumer-preference assortments to stores, leading to an improved shopping experience for its customers. |
| Achieving Success and Differentiating from the competition: |
| Leveraging the JDA Category Management solutions provided Coca-Cola Enterprises with the ability to streamline planning and execution processes to optimize space and category performance. As a result, the beverage giant has driven category sales and profits through more intelligent decision-making capabilities, as well as delivered store-specific planograms that are grounded in shopper insights and store-specific data. |
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Buehler Food Markets for Best in Store Systems
Buehler Food Markets is a family owned Midwest grocery chain, operating 13 grocery stores across Ohio. Established in 1929, the grocer's headquarters are located in Wooster, Ohio. |
| Primary Business Challenge: |
| | Buehler's departments were using disparate systems to manage labor within its stores, and none of them were integrated with the company's time and attendance system. Comparing scheduled hours to actual hours was a tedious and ineffective process. Because labor is one of the principal costs in the food industry, the grocer realized it needed an integrated solution that could address its complex business needs. |
| The enabling JDA Solution: |
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- JDA© Workforce Management
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| Real Results: |
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- 30 percent reduction in scheduling time
- 10 to 15 percent decrease in labor costs with the establishment of a minimum-hours policy
- Reduced overtime by almost 4,000 hours, a savings of more than $71,000
- Improved ability to forecast staffing needs based on actual sales data collected from the point-of-sale system
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| Benefits from a consumer standpoint: |
| Buehler leverages JDA Workforce Management to automatically project staffing needs at 15-minute intervals. As a result, the retailer can easily make adjustments for holidays, events and weather to ensure optimal labor hours, ensuring that the right staff is available at the right time to assist customers and drive sales. |
| Achieving Success and Differentiating from the competition: |
| Utilizing workforce management best practices has allowed Buehler to control labor costs, react quickly and effectively to issues as they arise, as well as compete effectively with big-box retailers. |
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2GO for Best in Growth Markets
2GO is the largest inter-island movers of passengers and cargo in the Philippines. A division of Aboitiz Equity Venture, 2GO offers more than 300 outlets nationwide and operates its own fleet of vessels, aircraft, trucks and other delivery vehicles. |
| Primary Business Challenge: |
| | 2GO needed to drive its business in a more strategic direction, enabling it to effectively streamline transport management information, automate load planning for cargo consolidation, improve cost savings, as well as plan and optimize across various transport modes. |
| The enabling JDA Solution: |
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- JDA© Transportation Planning
- JDA© Shipment Execution
- JDA© Reporting
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| Real Results: |
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- Achieved approximately $300,000 in freight savings
- Reduced average daily truck use from 48 units to 25 units
- Increased gross profit from 18 percent to 25 percent
- Improved billing accuracy
- Increased equipment utilization for sea movements
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| Benefits from a consumer standpoint: |
| With the JDA Transportation & Logistics Management solutions, 2GO improved billing time and accuracy for its trucking service, as well as its track and trace capabilities. Additionally, the company achieved a 98 percent delivery performance rating, surpassing its original target of 95 percent. |
| Achieving Success and Differentiating from the competition: |
| Having visibility into up-to-date information has enabled 2GO to make quicker decisions in terms of cost or rate proposals, and has provided support for negotiations with new customers. |
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H.J. Heinz Company for Best in ROI
H.J. Heinz Company is a $10 billion global company, producing and marketing a wide range of condiments, packaged meals, frozen foods, soups and snacks. Heinz sells 650 million bottles of its iconic ketchup each year, and its products enjoy the number-one or number-two market share in more than 50 countries. Approximately 32,500 people around the world are employed by Heinz. |
| Primary Business Challenge: |
| | Heinz needed a solution that could integrate with its existing demand and supply planning system to support its $4 billion U.S. business and enable the company to quickly and effectively optimize the balance between service levels and cost constraints. |
| The enabling JDA Solution: |
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- JDA© Inventory Policy Optimization
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| Real Results: |
| Heinz took a phased approach to roll the solution out across its multiple product lines. Benefits realized during the first phase of the project include:
- Approximately $7.5 million reduction in inventory
- 9 percent decrease in safety stock
Heinz expects results of the same magnitude after the second phase of the rollout is completed. |
| Benefits from a consumer standpoint: |
| The global food giant is now able to identify and rebalance safety stocks without negatively affecting customer service levels. Additionally, the solution has provided Heinz with the ability to effectively model what anticipated service levels might be if target stock levels are adjusted, or conversely, what the inventory levels should be to support an alternative service-level objective. |
| Achieving Success and Differentiating from the competition: |
| The ability to model the relationship between service, inventory and sources of variation allows Heinz to make meaningful, data-based decisions, which ultimately helps shape the company's go-to-market policies and has positively impacted the bottom line. On the supply chain side, the JDA solution has enabled Heinz to better manage internal sources of variation, including lead time and production adherence, allowing the manufacturer to optimize batch sizes and increase responsiveness to changes in the business. |
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Mr Price Group for Best Implementation of the Year
Mr. Price Group is a leading retailer that operates approximately 930 stores in Southern Africa. The company consists of four retail chains that focus on selling clothing, footwear, accessories and home goods. |
| Primary Business Challenge: |
| | To support planned growth and provide improved supply chain visibility and management, Mr. Price Group needed to invest in technology that would reduce stock-outs, increase inventory turns and improve overall sales. |
| The enabling JDA Solution: |
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- JDA© Demand
- JDA© Fulfillment
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| Real Results: |
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- 22 percent increase in gross margin return on investment
- 4 percent reduction in Quality Assurance re-submissions
- Increased stock turns from 3.3 to 5.1 in its fashion apparel division
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| Benefits from a consumer standpoint: |
| The JDA solutions enable Mr. Price Group to have the right product in stock at the right store and at the right time, reducing lost sales and increasing customer service levels. |
| Achieving Success and Differentiating from the competition: |
| Quicker stock turns and enhanced inventory management ensure that the retailer's stores always have fresh, high-fashion merchandise on the store shelf. Providing the customer with a superior shopping experience helps Mr. Price Group stay ahead of the competition. |
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