Blue Yonder Case Studies Martins Comercio e Servicos de Distribuicao S/A Optimizes Inventory with JDA Advanced Warehouse Replenishment

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	Martins Comercio e Servicos de Distribuicao S/A Optimizes Inventory with JDA Advanced Warehouse Replenishment Blue Yonder

Martins Comercio e Servicos de Distribuicao S/A Optimizes Inventory with JDA Advanced Warehouse Replenishment

Blue Yonder

Technology Category	Functional Applications - Inventory Management Systems
Applicable Industries	Retail
Applicable Functions	Warehouse & Inventory Management
Use Cases	Inventory Management
Services	System Integration Training
Challenge	Martins Comercio e Servicos de Distribuicao S/A (Martins), the largest wholesaler in Brazil, operates a vast and complex distribution system. The company sells 13,000 individual stock-keeping units (SKUs), covers more than 34 million kilometers annually, manages 165,000 square meters of warehousing space, and operates a state-of-the-art fleet of nearly 1,200 delivery vehicles. Despite its size, the company operates on slim margins, making it crucial for Martins to work as effectively and productively as possible. The company needed to optimize every aspect of its operations, from purchasing from vendors to delivering to customers, to maximize its tight profit margins. One of the key areas identified for optimization was inventory management. The company realized that it could save a significant amount of money by minimizing overstocks and optimizing its inventory. Read More
About Customer	Martins Comercio e Servicos de Distribuicao S/A (Martins) is the largest wholesaler in Brazil. The company sells 13,000 individual stock-keeping units (SKUs), covers more than 34 million kilometers annually, manages 165,000 square meters of warehousing space, and operates a state-of-the-art fleet of nearly 1,200 delivery vehicles. Despite its size, the company operates on slim margins, making it crucial for Martins to work as effectively and productively as possible. The company needed to optimize every aspect of its operations, from purchasing from vendors to delivering to customers, to maximize its tight profit margins. Read More
Solution	Martins has been using JDA Advanced Warehouse Replenishment for the past 11 years to manage its sophisticated national distribution system. The solution enables Martins to optimize its forecasting and replenishment process by calculating inventory quantities based on advanced, predictive algorithms that incorporate demand, lead time, profitability, and service goals. The system runs at the end of each day, and the next morning, buyers are informed about what they need to order that day. The entire process is extremely fast and efficient. Martins can also formulate orders three months in advance and provide vendors with visibility, so they can optimize their production processes. JDA Advanced Warehouse Replenishment has been a critical component of Martins’ corporate decentralization strategy, aimed at improving logistics costs and quality by efficiently moving large volumes of products closer to customers who are physically dispersed across Brazil. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Applicable Industries

Retail

Applicable Functions

Warehouse & Inventory Management

Use Cases

Inventory Management

Services

System Integration

Training

Challenge

Martins Comercio e Servicos de Distribuicao S/A (Martins), the largest wholesaler in Brazil, operates a vast and complex distribution system. The company sells 13,000 individual stock-keeping units (SKUs), covers more than 34 million kilometers annually, manages 165,000 square meters of warehousing space, and operates a state-of-the-art fleet of nearly 1,200 delivery vehicles. Despite its size, the company operates on slim margins, making it crucial for Martins to work as effectively and productively as possible. The company needed to optimize every aspect of its operations, from purchasing from vendors to delivering to customers, to maximize its tight profit margins. One of the key areas identified for optimization was inventory management. The company realized that it could save a significant amount of money by minimizing overstocks and optimizing its inventory.

About Customer

Martins Comercio e Servicos de Distribuicao S/A (Martins) is the largest wholesaler in Brazil. The company sells 13,000 individual stock-keeping units (SKUs), covers more than 34 million kilometers annually, manages 165,000 square meters of warehousing space, and operates a state-of-the-art fleet of nearly 1,200 delivery vehicles. Despite its size, the company operates on slim margins, making it crucial for Martins to work as effectively and productively as possible. The company needed to optimize every aspect of its operations, from purchasing from vendors to delivering to customers, to maximize its tight profit margins.

Solution

Martins has been using JDA Advanced Warehouse Replenishment for the past 11 years to manage its sophisticated national distribution system. The solution enables Martins to optimize its forecasting and replenishment process by calculating inventory quantities based on advanced, predictive algorithms that incorporate demand, lead time, profitability, and service goals. The system runs at the end of each day, and the next morning, buyers are informed about what they need to order that day. The entire process is extremely fast and efficient. Martins can also formulate orders three months in advance and provide vendors with visibility, so they can optimize their production processes. JDA Advanced Warehouse Replenishment has been a critical component of Martins’ corporate decentralization strategy, aimed at improving logistics costs and quality by efficiently moving large volumes of products closer to customers who are physically dispersed across Brazil.

Impact #1	Reduced inventory levels by 20 percent
Impact #2	Decreased lost sales by 6 percent
Impact #3	Enabled decentralization strategy

Impact #1

Reduced inventory levels by 20 percent

Impact #2

Decreased lost sales by 6 percent

Impact #3

Enabled decentralization strategy

Benefit #1	20 percent reduction in inventory across its distribution system
Benefit #2	6 percentage points reduction in lost sales

Benefit #1

20 percent reduction in inventory across its distribution system

Benefit #2

6 percentage points reduction in lost sales

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Overview

Martins Comercio e Servicos de Distribuicao S/A Optimizes Inventory with JDA Advanced Warehouse Replenishment

Operational Impact

Quantitative Benefit