Blue Yonder Case Studies Sally Beauty Faces the Future with Blue Yonder

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	Sally Beauty Faces the Future with Blue Yonder Blue Yonder

Sally Beauty Faces the Future with Blue Yonder

Blue Yonder

Technology Category	Analytics & Modeling - Predictive Analytics Functional Applications - Inventory Management Systems
Applicable Industries	Retail
Applicable Functions	Sales & Marketing
Use Cases	Demand Planning & Forecasting Inventory Management
Services	Data Science Services System Integration
Challenge	Sally Beauty Holdings, a retailer and distributor of professional beauty supplies, was facing the challenge of managing the complexity of demand planning, fulfillment execution, and category management across two very different markets. The company operates two business units: Sally Beauty Supply, aimed at consumers, and Beauty Systems Group, which targets professional stylists. With 20,000 SKUs, 5,000 stores, and annual revenues of over $3.9 billion, the company needed to increase visibility, responsiveness, and revenues while also managing costs. The pandemic further complicated matters by causing a rapid shift in consumer behaviors and a 30% increase in the rate of buy online/pickup in store (BOPIS) orders. Read More
About Customer	Sally Beauty Holdings is a retailer and distributor of professional beauty supplies. The company operates two business units: Sally Beauty Supply, which is aimed at consumers, and Beauty Systems Group, which targets professional stylists. With 20,000 SKUs, 5,000 stores, and annual revenues of over $3.9 billion, Sally Beauty is a significant player in the beauty supply industry. The company serves a diverse customer base, with different purchasing behaviors between consumers and salon professionals. Sally Beauty's goal is to meet every customer where and when they want to shop, creating a broad network strategy that's based on meeting very specific, granular customer needs. Read More
Solution	To address these challenges, Sally Beauty partnered with Blue Yonder on a large footprint of planning, execution, and retail solutions. Blue Yonder's demand planning capabilities allowed Sally Beauty to consolidate and synchronize demand signals, as well as external variables, across two businesses and multiple sales channels. This helped the company make more accurate decisions, from inventory staging to product assortments. Blue Yonder’s fulfillment planning capabilities helped Sally Beauty make profitable, flexible decisions by considering channel- and market-specific demand signals, customer service targets, inventory locations, safety-stock policies, and other constraints. Additionally, Blue Yonder’s category management capabilities enabled Sally Beauty to create intelligent, informed merchandising plans that drive revenue growth by leveraging customer insights, maximizing the selling space available, and applying robust analytics. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Functional Applications - Inventory Management Systems

Applicable Industries

Retail

Applicable Functions

Sales & Marketing

Use Cases

Demand Planning & Forecasting

Inventory Management

Services

Data Science Services

System Integration

Challenge

Sally Beauty Holdings, a retailer and distributor of professional beauty supplies, was facing the challenge of managing the complexity of demand planning, fulfillment execution, and category management across two very different markets. The company operates two business units: Sally Beauty Supply, aimed at consumers, and Beauty Systems Group, which targets professional stylists. With 20,000 SKUs, 5,000 stores, and annual revenues of over $3.9 billion, the company needed to increase visibility, responsiveness, and revenues while also managing costs. The pandemic further complicated matters by causing a rapid shift in consumer behaviors and a 30% increase in the rate of buy online/pickup in store (BOPIS) orders.

About Customer

Sally Beauty Holdings is a retailer and distributor of professional beauty supplies. The company operates two business units: Sally Beauty Supply, which is aimed at consumers, and Beauty Systems Group, which targets professional stylists. With 20,000 SKUs, 5,000 stores, and annual revenues of over $3.9 billion, Sally Beauty is a significant player in the beauty supply industry. The company serves a diverse customer base, with different purchasing behaviors between consumers and salon professionals. Sally Beauty's goal is to meet every customer where and when they want to shop, creating a broad network strategy that's based on meeting very specific, granular customer needs.

Solution

To address these challenges, Sally Beauty partnered with Blue Yonder on a large footprint of planning, execution, and retail solutions. Blue Yonder's demand planning capabilities allowed Sally Beauty to consolidate and synchronize demand signals, as well as external variables, across two businesses and multiple sales channels. This helped the company make more accurate decisions, from inventory staging to product assortments. Blue Yonder’s fulfillment planning capabilities helped Sally Beauty make profitable, flexible decisions by considering channel- and market-specific demand signals, customer service targets, inventory locations, safety-stock policies, and other constraints. Additionally, Blue Yonder’s category management capabilities enabled Sally Beauty to create intelligent, informed merchandising plans that drive revenue growth by leveraging customer insights, maximizing the selling space available, and applying robust analytics.

Impact #1	Increased insight into customer needs across channels, allowing for more targeted and effective marketing and sales strategies.
Impact #2	More flexible, more profitable fulfillment, with the ability to rapidly adjust to changes in consumer behavior and market conditions.
Impact #3	Improved merchandising effectiveness, with intelligent, informed plans that drive revenue growth.

Impact #1

Increased insight into customer needs across channels, allowing for more targeted and effective marketing and sales strategies.

Impact #2

More flexible, more profitable fulfillment, with the ability to rapidly adjust to changes in consumer behavior and market conditions.

Impact #3

Improved merchandising effectiveness, with intelligent, informed plans that drive revenue growth.

Benefit #1	Rapid growth in buy online/pickup in store (BOPIS) rate by 30%.
Benefit #2	Ability to manage a large footprint of 20,000 SKUs and 5,000 stores.
Benefit #3	Ability to handle annual revenues of over $3.9 billion.

Benefit #1

Rapid growth in buy online/pickup in store (BOPIS) rate by 30%.

Benefit #2

Ability to manage a large footprint of 20,000 SKUs and 5,000 stores.

Benefit #3

Ability to handle annual revenues of over $3.9 billion.

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Overview

Sally Beauty Faces the Future with Blue Yonder

Operational Impact

Quantitative Benefit