Blue Yonder Case Studies Rexall’s Prescription for Success

Edit This Case Study Record

	Rexall’s Prescription for Success Blue Yonder

Rexall’s Prescription for Success

Blue Yonder

Technology Category	Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Healthcare & Hospitals
Use Cases	Inventory Management
Services	System Integration
Challenge	Rexall, a Canadian retail pharmaceutical company, was facing challenges due to its reliance on older technology and processes. The store replenishment process was initiated at the store level based on the results of daily physical inventory counts that leveraged handheld RF technology. Store managers had limited visibility to future store-level demand pattern changes, item cannibalization, safety stock requirements or days coverage prior to placing these manual orders. This resulted in frequent demand-supply imbalances. Additionally, purchase orders to vendors were conducted via non-EDI channels with patterns and volatility that resembled the patterns within the stores, causing similar imbalances with the DCs. As such, the organization sought to establish an advanced planning model that would eliminate the extremely labor intensive and manual replenishment process. Read More
About Customer	Rexall is a Canadian retail pharmaceutical company that has been experiencing growth within the industry. However, the company's reliance on older technology and processes was impacting its profitability, efficiency, and competitive agility. The store replenishment process was initiated at the store level based on the results of daily physical inventory counts that leveraged handheld RF technology. Store managers had limited visibility to future store-level demand pattern changes, item cannibalization, safety stock requirements or days coverage prior to placing these manual orders. This resulted in frequent demand-supply imbalances. Additionally, purchase orders to vendors were conducted via non-EDI channels with patterns and volatility that resembled the patterns within the stores, causing similar imbalances with the DCs. Read More
Solution	Rexall implemented Blue Yonder’s forecasting and replenishment capabilities to provide an automated decision support platform to perform advanced planning activities and to improve Rexall’s operations and ultimately its bottom line. The entire project was completed in 30 weeks. To date the solution controls the replenishment operations for 317 stores corporate store locations across Canada. Now, all non-direct to store products are replenished leveraging Blue Yonder solutions. The entire replenishment process has been revamped across Rexall’s network to utilize a centralized, newly defined recommended order process, whereby stores are provided a daily list of recommended purchases. The recommended orders that are derived from a combination of store-level demand forecast, promotional input and timephased inventory positions is compared and approved by the store for replenishment. Read More Log in to view content
Contents

Technology Category

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Healthcare & Hospitals

Use Cases

Inventory Management

Services

System Integration

Challenge

Rexall, a Canadian retail pharmaceutical company, was facing challenges due to its reliance on older technology and processes. The store replenishment process was initiated at the store level based on the results of daily physical inventory counts that leveraged handheld RF technology. Store managers had limited visibility to future store-level demand pattern changes, item cannibalization, safety stock requirements or days coverage prior to placing these manual orders. This resulted in frequent demand-supply imbalances. Additionally, purchase orders to vendors were conducted via non-EDI channels with patterns and volatility that resembled the patterns within the stores, causing similar imbalances with the DCs. As such, the organization sought to establish an advanced planning model that would eliminate the extremely labor intensive and manual replenishment process.

About Customer

Rexall is a Canadian retail pharmaceutical company that has been experiencing growth within the industry. However, the company's reliance on older technology and processes was impacting its profitability, efficiency, and competitive agility. The store replenishment process was initiated at the store level based on the results of daily physical inventory counts that leveraged handheld RF technology. Store managers had limited visibility to future store-level demand pattern changes, item cannibalization, safety stock requirements or days coverage prior to placing these manual orders. This resulted in frequent demand-supply imbalances. Additionally, purchase orders to vendors were conducted via non-EDI channels with patterns and volatility that resembled the patterns within the stores, causing similar imbalances with the DCs.

Solution

Rexall implemented Blue Yonder’s forecasting and replenishment capabilities to provide an automated decision support platform to perform advanced planning activities and to improve Rexall’s operations and ultimately its bottom line. The entire project was completed in 30 weeks. To date the solution controls the replenishment operations for 317 stores corporate store locations across Canada. Now, all non-direct to store products are replenished leveraging Blue Yonder solutions. The entire replenishment process has been revamped across Rexall’s network to utilize a centralized, newly defined recommended order process, whereby stores are provided a daily list of recommended purchases. The recommended orders that are derived from a combination of store-level demand forecast, promotional input and timephased inventory positions is compared and approved by the store for replenishment.

Impact #1	Significant labor efficiency improvement at store level
Impact #2	Improvement in on shelf availability supporting a positive trend in top line sales growth
Impact #3	Reduction in a labor intensive and time-consuming effort that often took stores 2- 5 hours per day to complete down to minutes

Impact #1

Significant labor efficiency improvement at store level

Impact #2

Improvement in on shelf availability supporting a positive trend in top line sales growth

Impact #3

Reduction in a labor intensive and time-consuming effort that often took stores 2- 5 hours per day to complete down to minutes

Benefit #1	Reduction in inventory
Benefit #2	Improved product availability
Benefit #3	Positive top line sales growth

Benefit #1

Reduction in inventory

Benefit #2

Improved product availability

Benefit #3

Positive top line sales growth

Download PDF Version

Overview

Rexall’s Prescription for Success

Operational Impact

Quantitative Benefit