Blue Yonder Case Studies Supporting Rapid Growth at El Palacio de Hierro

Edit This Case Study Record

	Supporting Rapid Growth at El Palacio de Hierro Blue Yonder

Supporting Rapid Growth at El Palacio de Hierro

Blue Yonder

Technology Category	Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	Retail
Applicable Functions	Warehouse & Inventory Management
Use Cases	Inventory Management Warehouse Automation
Services	Software Design & Engineering Services System Integration
Challenge	El Palacio de Hierro, a Mexico City-based upscale department store chain, was facing a period of rapid growth, with predictions of a 521 percent increase. Their existing warehouse management system (WMS) was outdated and frequently experienced downtime, which was impacting their service to customers and stores. The company was supporting deliveries of omni-channel orders to customers and its over 200 stores from a 430,000 sq. ft. distribution center (DC) in Mexico City. The outdated WMS, servers, and database resulted in capacity and response time issues, as well as frequent downtime. With the predicted rapid growth and goals for improved customer service, including delivery of everything from e-commerce orders to major appliances, El Palacio de Hierro needed a new WMS to support all DC functions efficiently with 100% product availability and 99%+ order accuracy. Read More
About Customer	El Palacio de Hierro is an upscale department store chain based in Mexico City. The company was facing a period of rapid growth, with predictions of a 521 percent increase. They were supporting deliveries of omni-channel orders to customers and its over 200 stores from a 430,000 sq. ft. distribution center (DC) in Mexico City. The company offers a wide selection of merchandise and is challenged with increasing customer demands for 100 percent product availability and fast, accurate delivery of their orders. Their DC operations can be hectic, receiving shipments from suppliers via scheduled appointments, as well as imported goods, and providing inventory storage, store replenishment, and cross-docking functions. Read More
Solution	El Palacio de Hierro selected Blue Yonder’s Luminate™ Logistics warehouse management capability to support their growth and provide stability. The implementation of the new WMS aimed to create business continuity by eliminating system downtime. The new system also aimed to increase operational efficiency and accuracy across many functions to improve customer service while supporting an aggressive five-year growth plan. The implementation resulted in significantly improved inventory visibility and accuracy, increased labor productivity, and substantially improved order delivery times to customers and stores. Blue Yonder provided consulting and education services that continue to bear fruit. Read More Log in to view content
Contents

Technology Category

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Retail

Applicable Functions

Warehouse & Inventory Management

Use Cases

Inventory Management

Warehouse Automation

Services

Software Design & Engineering Services

System Integration

Challenge

El Palacio de Hierro, a Mexico City-based upscale department store chain, was facing a period of rapid growth, with predictions of a 521 percent increase. Their existing warehouse management system (WMS) was outdated and frequently experienced downtime, which was impacting their service to customers and stores. The company was supporting deliveries of omni-channel orders to customers and its over 200 stores from a 430,000 sq. ft. distribution center (DC) in Mexico City. The outdated WMS, servers, and database resulted in capacity and response time issues, as well as frequent downtime. With the predicted rapid growth and goals for improved customer service, including delivery of everything from e-commerce orders to major appliances, El Palacio de Hierro needed a new WMS to support all DC functions efficiently with 100% product availability and 99%+ order accuracy.

About Customer

El Palacio de Hierro is an upscale department store chain based in Mexico City. The company was facing a period of rapid growth, with predictions of a 521 percent increase. They were supporting deliveries of omni-channel orders to customers and its over 200 stores from a 430,000 sq. ft. distribution center (DC) in Mexico City. The company offers a wide selection of merchandise and is challenged with increasing customer demands for 100 percent product availability and fast, accurate delivery of their orders. Their DC operations can be hectic, receiving shipments from suppliers via scheduled appointments, as well as imported goods, and providing inventory storage, store replenishment, and cross-docking functions.

Solution

El Palacio de Hierro selected Blue Yonder’s Luminate™ Logistics warehouse management capability to support their growth and provide stability. The implementation of the new WMS aimed to create business continuity by eliminating system downtime. The new system also aimed to increase operational efficiency and accuracy across many functions to improve customer service while supporting an aggressive five-year growth plan. The implementation resulted in significantly improved inventory visibility and accuracy, increased labor productivity, and substantially improved order delivery times to customers and stores. Blue Yonder provided consulting and education services that continue to bear fruit.

Impact #1	100 percent inventory visibility reduced inventory errors by 75 percent and increased inventory accuracy to 99.96 percent
Impact #2	Labor productivity increased 30 percent, resulting in US$ 580,000 in annual saving
Impact #3	Order picking accuracy improved to 99.78 percent

Impact #1

100 percent inventory visibility reduced inventory errors by 75 percent and increased inventory accuracy to 99.96 percent

Impact #2

Labor productivity increased 30 percent, resulting in US$ 580,000 in annual saving

Impact #3

Order picking accuracy improved to 99.78 percent

Benefit #1	30% Improvement in customer delivery response times
Benefit #2	25% Improvement in store delivery response times
Benefit #3	30% Improvement in DC labor productivity

Benefit #1

30% Improvement in customer delivery response times

Benefit #2

25% Improvement in store delivery response times

Benefit #3

30% Improvement in DC labor productivity

Download PDF Version

Overview

Supporting Rapid Growth at El Palacio de Hierro

Operational Impact

Quantitative Benefit