Blue Yonder Case Studies Ace Hardware Transforms Its Supply Chain and Reduces Replenishment and Safety-Stock Inventory by $27 Million

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	Ace Hardware Transforms Its Supply Chain and Reduces Replenishment and Safety-Stock Inventory by $27 Million Blue Yonder

Ace Hardware Transforms Its Supply Chain and Reduces Replenishment and Safety-Stock Inventory by $27 Million

Blue Yonder

Technology Category	Functional Applications - Inventory Management Systems Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	Retail
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Supply Chain Visibility
Services	System Integration Training
Challenge	Ace Hardware Corporation, the world’s largest retailer-owned hardware cooperative, has been on a journey of global supply chain transformation. The company's needs became more complex as it expanded globally. Ace had been relying on two different replenishment solutions: JDA to support its domestic vendors and a third-party solution to handle its import vendors that weren’t integrated with the business. The company needed a solution that could support time-phased demand forecasting along with multi-echelon and multi-tier planning capabilities for its domestic and import vendors. Read More
About Customer	Ace Hardware Corporation was formed in 1924 and has grown to become the world’s largest retailer-owned hardware cooperative with wholesale sales of $3.45 billion and more than 4,400 stores in 60 countries. Ace prides itself on delivering personalized service and has been recognized by J.D. Power & Associates as the highest in “Customer Satisfaction among Home Improvement Retail Stores” for four consecutive years. The company's dedication to consistently providing unmatched service to its stores and customers has been the impetus behind its global supply chain transformation. Read More
Solution	Ace Hardware implemented JDA Advanced Warehouse Replenishment, JDA Demand, and JDA Fulfillment. These solutions provided support for time-phased demand forecasting along with multi-echelon and multi-tier planning capabilities. JDA Fulfillment enabled Ace to quickly configure flexible global networks that could be contracted and expanded to support the company’s international global procurement requirements. It also provided better visibility for all of Ace’s vendors. Ace is the first company to integrate JDA’s Demand engine with the JDA Advanced Warehouse Replenishment system. The implementation was supported by JDA Services, which provided highly skilled and knowledgeable consultants. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Retail

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Supply Chain Visibility

Services

System Integration

Training

Challenge

Ace Hardware Corporation, the world’s largest retailer-owned hardware cooperative, has been on a journey of global supply chain transformation. The company's needs became more complex as it expanded globally. Ace had been relying on two different replenishment solutions: JDA to support its domestic vendors and a third-party solution to handle its import vendors that weren’t integrated with the business. The company needed a solution that could support time-phased demand forecasting along with multi-echelon and multi-tier planning capabilities for its domestic and import vendors.

About Customer

Ace Hardware Corporation was formed in 1924 and has grown to become the world’s largest retailer-owned hardware cooperative with wholesale sales of $3.45 billion and more than 4,400 stores in 60 countries. Ace prides itself on delivering personalized service and has been recognized by J.D. Power & Associates as the highest in “Customer Satisfaction among Home Improvement Retail Stores” for four consecutive years. The company's dedication to consistently providing unmatched service to its stores and customers has been the impetus behind its global supply chain transformation.

Solution

Ace Hardware implemented JDA Advanced Warehouse Replenishment, JDA Demand, and JDA Fulfillment. These solutions provided support for time-phased demand forecasting along with multi-echelon and multi-tier planning capabilities. JDA Fulfillment enabled Ace to quickly configure flexible global networks that could be contracted and expanded to support the company’s international global procurement requirements. It also provided better visibility for all of Ace’s vendors. Ace is the first company to integrate JDA’s Demand engine with the JDA Advanced Warehouse Replenishment system. The implementation was supported by JDA Services, which provided highly skilled and knowledgeable consultants.

Impact #1	Ace Hardware managed to modestly improve its already high import service levels with the support of JDA.
Impact #2	Ace can now optimize container orders for its import business – a process the company once relied on its suppliers to handle.
Impact #3	JDA Fulfillment gives Ace greater flexibility in terms of supply chain movements.

Impact #1

Ace Hardware managed to modestly improve its already high import service levels with the support of JDA.

Impact #2

Ace can now optimize container orders for its import business – a process the company once relied on its suppliers to handle.

Impact #3

JDA Fulfillment gives Ace greater flexibility in terms of supply chain movements.

Benefit #1	Reduced inventory by $27 million, including an $11 million decrease in import inventory due to redeployment of safety stock and a planned reduction of $16 million in domestic safety stock.
Benefit #2	Increased service levels for imported products.
Benefit #3	Decreased space requirements at its redistribution center, resulting in annual savings of $475,000.

Benefit #1

Reduced inventory by $27 million, including an $11 million decrease in import inventory due to redeployment of safety stock and a planned reduction of $16 million in domestic safety stock.

Benefit #2

Increased service levels for imported products.

Benefit #3

Decreased space requirements at its redistribution center, resulting in annual savings of $475,000.

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Overview

Ace Hardware Transforms Its Supply Chain and Reduces Replenishment and Safety-Stock Inventory by $27 Million

Operational Impact

Quantitative Benefit