Blue Yonder Case Studies Supply Chain Makeover

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	Supply Chain Makeover Blue Yonder

Supply Chain Makeover

Blue Yonder

Technology Category	Functional Applications - Inventory Management Systems
Applicable Industries	Consumer Goods
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Supply Chain Visibility
Services	System Integration Training
Challenge	Oriflame, one of the largest direct sales companies in the world, was facing challenges in managing its fast-growing business. The company's annual revenue has increased rapidly over the past 20 years, placing pressure on its global production and distribution network. Oriflame also replaces or relaunches around 800 of its 2,000 products annually, making it especially difficult to forecast demand for these new stock-keeping units. Additionally, Oriflame publishes a new catalog every three weeks, with specific offers that are valid only for that three-week period. When a catalog expires demand can dip significantly, making forecasting and fulfillment more challenging. With that level of fluctuation in demand, the company wanted to determine exactly how much product to have on hand to ensure it wasn’t left with excess inventory. Read More
About Customer	Oriflame is one of the largest direct sales companies in the world. The company's beauty products are sold through catalogs and a global network of approximately 3 million sales consultants. The company regularly distributes copies of its catalog in 40 languages and in more than 60 countries. The catalog acts as Oriflame’s global “shop window.” Over the past 20 years, Oriflame’s annual revenue has increased rapidly. This impressive growth has placed pressure on the company’s global production and distribution network. Oriflame also replaces or relaunches around 800 of its 2,000 products annually, making it especially difficult to forecast demand for these new stock-keeping units. Read More
Solution	To help manage its fast-growing business, Oriflame turned to JDA Software. The company embarked on a journey to improve its service levels, and create direct alignment from its suppliers through to its multiple distribution lanes, hubs and worldwide markets. After evaluating three other software vendors, Oriflame selected a solution from JDA. The collaborative team began by implementing JDA Fulfillment, part of JDA’s Intelligent Fulfillment™ solution, and immediately began to see dramatic results. This has decreased Oriflame's lead times, freed up its planners from manual work and eliminated any double-checking. It has also increased the level of confidence within the sales force and markets because there is daily visibility into actual demand and supply. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Applicable Industries

Consumer Goods

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Supply Chain Visibility

Services

System Integration

Training

Challenge

Oriflame, one of the largest direct sales companies in the world, was facing challenges in managing its fast-growing business. The company's annual revenue has increased rapidly over the past 20 years, placing pressure on its global production and distribution network. Oriflame also replaces or relaunches around 800 of its 2,000 products annually, making it especially difficult to forecast demand for these new stock-keeping units. Additionally, Oriflame publishes a new catalog every three weeks, with specific offers that are valid only for that three-week period. When a catalog expires demand can dip significantly, making forecasting and fulfillment more challenging. With that level of fluctuation in demand, the company wanted to determine exactly how much product to have on hand to ensure it wasn’t left with excess inventory.

About Customer

Oriflame is one of the largest direct sales companies in the world. The company's beauty products are sold through catalogs and a global network of approximately 3 million sales consultants. The company regularly distributes copies of its catalog in 40 languages and in more than 60 countries. The catalog acts as Oriflame’s global “shop window.” Over the past 20 years, Oriflame’s annual revenue has increased rapidly. This impressive growth has placed pressure on the company’s global production and distribution network. Oriflame also replaces or relaunches around 800 of its 2,000 products annually, making it especially difficult to forecast demand for these new stock-keeping units.

Solution

To help manage its fast-growing business, Oriflame turned to JDA Software. The company embarked on a journey to improve its service levels, and create direct alignment from its suppliers through to its multiple distribution lanes, hubs and worldwide markets. After evaluating three other software vendors, Oriflame selected a solution from JDA. The collaborative team began by implementing JDA Fulfillment, part of JDA’s Intelligent Fulfillment™ solution, and immediately began to see dramatic results. This has decreased Oriflame's lead times, freed up its planners from manual work and eliminated any double-checking. It has also increased the level of confidence within the sales force and markets because there is daily visibility into actual demand and supply.

Impact #1	Reduced inventory levels by approximately 25 percent
Impact #2	Improved service levels by 10 percentage points
Impact #3	Decreased lead times

Impact #1

Reduced inventory levels by approximately 25 percent

Impact #2

Improved service levels by 10 percentage points

Impact #3

Decreased lead times

Benefit #1	Inventory reduction by approximately 25 percent
Benefit #2	Service levels improvement by 10 percentage points
Benefit #3	Lead times decrease

Benefit #1

Inventory reduction by approximately 25 percent

Benefit #2

Service levels improvement by 10 percentage points

Benefit #3

Lead times decrease

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Overview

Supply Chain Makeover

Operational Impact

Quantitative Benefit