Blue Yonder Case Studies Prescription for Operational Excellence

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	Prescription for Operational Excellence Blue Yonder

Prescription for Operational Excellence

Blue Yonder

Technology Category	Functional Applications - Inventory Management Systems Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	Healthcare & Hospitals
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Warehouse Automation
Services	Cloud Planning, Design & Implementation Services Software Design & Engineering Services System Integration
Challenge	Owens & Minor, the nation’s leading distributor of medical and surgical supplies to the acute-care market, sought to improve its demand forecasting and replenishment processes. The company aimed to enhance its ability to meet changes in customer demand on time and profitably, while further reducing its capital investments. The company had been using a homegrown purchase order system which was obsolete and had no ability to optimize the actual order. The company also faced challenges in building truckloads and was limited in adding more truckload vendors. The company was running well over its service level goal in aggregate and wanted to meet its service level goal with less inventory. Read More
About Customer	Owens & Minor is the nation’s leading distributor of medical and surgical supplies to the acute-care market. The company has been managing a highly-efficient distribution service for over 125 years and understands how supply chain efficiencies can translate into bottom-line value. The company recently embarked on a supply chain initiative to enhance its ability to meet changes in customer demand on time and profitably, while further reducing its capital investments. As a long-time JDA Software customer, Owens & Minor sought to improve its demand forecasting and replenishment processes by upgrading to the latest versions of JDA Demand and JDA Fulfillment, from JDA’s Intelligent Fulfillment™ suite. Read More
Solution	Owens & Minor decided to upgrade to the latest versions of JDA Demand and JDA Fulfillment, from JDA’s Intelligent Fulfillment™ suite. The solutions helped the medical wholesaler-distributor create forecasts that accurately predict future customer demand, and create optimized multi-level replenishment plans. The company also replaced its homegrown purchase order system with JDA Order Optimization. This solution helped Owens & Minor generate optimal purchase orders and vendor managed inventory requirements, enabling the company to increase revenue by meeting target services levels while simultaneously minimizing logistics and inventory holding costs. JDA Order Optimization also automated the truckload-building process, enabling the company to build within the structure based on minimums and maximums established by Owens & Minor. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Healthcare & Hospitals

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Warehouse Automation

Services

Cloud Planning, Design & Implementation Services

Software Design & Engineering Services

System Integration

Challenge

Owens & Minor, the nation’s leading distributor of medical and surgical supplies to the acute-care market, sought to improve its demand forecasting and replenishment processes. The company aimed to enhance its ability to meet changes in customer demand on time and profitably, while further reducing its capital investments. The company had been using a homegrown purchase order system which was obsolete and had no ability to optimize the actual order. The company also faced challenges in building truckloads and was limited in adding more truckload vendors. The company was running well over its service level goal in aggregate and wanted to meet its service level goal with less inventory.

About Customer

Owens & Minor is the nation’s leading distributor of medical and surgical supplies to the acute-care market. The company has been managing a highly-efficient distribution service for over 125 years and understands how supply chain efficiencies can translate into bottom-line value. The company recently embarked on a supply chain initiative to enhance its ability to meet changes in customer demand on time and profitably, while further reducing its capital investments. As a long-time JDA Software customer, Owens & Minor sought to improve its demand forecasting and replenishment processes by upgrading to the latest versions of JDA Demand and JDA Fulfillment, from JDA’s Intelligent Fulfillment™ suite.

Solution

Owens & Minor decided to upgrade to the latest versions of JDA Demand and JDA Fulfillment, from JDA’s Intelligent Fulfillment™ suite. The solutions helped the medical wholesaler-distributor create forecasts that accurately predict future customer demand, and create optimized multi-level replenishment plans. The company also replaced its homegrown purchase order system with JDA Order Optimization. This solution helped Owens & Minor generate optimal purchase orders and vendor managed inventory requirements, enabling the company to increase revenue by meeting target services levels while simultaneously minimizing logistics and inventory holding costs. JDA Order Optimization also automated the truckload-building process, enabling the company to build within the structure based on minimums and maximums established by Owens & Minor.

Impact #1	Synchronized distribution plans that respect network and operating constraints.
Impact #2	Eliminated an incremental one day of supply from two-thirds of its safety stock with order optimization.
Impact #3	Increased company-wide visibility into at-risk and out-of-stock inventory.

Impact #1

Synchronized distribution plans that respect network and operating constraints.

Impact #2

Eliminated an incremental one day of supply from two-thirds of its safety stock with order optimization.

Impact #3

Increased company-wide visibility into at-risk and out-of-stock inventory.

Benefit #1	Performance speed has increased 98 percent for the delivery of the company’s at-risk reports.
Benefit #2	Substantial time savings and now has the ability to add truckload vendors.
Benefit #3	Reduced its days of supply for safety stock on many of its items.

Benefit #1

Performance speed has increased 98 percent for the delivery of the company’s at-risk reports.

Benefit #2

Substantial time savings and now has the ability to add truckload vendors.

Benefit #3

Reduced its days of supply for safety stock on many of its items.

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Overview

Prescription for Operational Excellence

Operational Impact

Quantitative Benefit