Blue Yonder > Case Studies > Doing More With Less

Doing More With Less

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Company Size
1,000+
Region
  • Europe
Country
  • Italy
Product
  • JDA Advanced Warehouse Replenishment
Tech Stack
  • Inventory Management Software
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
Technology Category
  • Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries
  • Retail
Applicable Functions
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
About The Customer
Gruppo PAM is one of Italy’s leading grocery chains, with approximately 130 stores and annual revenues of €2.3 billion. The acronym PAM stands for “più a meno,” which translates to “more with less.” This emphasizes the company’s mission of providing a large product range and outstanding service while still achieving the operational efficiencies necessary to keep prices low. Since 2011, Gruppo PAM has relied on JDA Software’s advanced warehouse replenishment solution to accomplish that mission.
The Challenge
Gruppo PAM, one of Italy’s leading grocery chains, was facing a challenge of maintaining a large product range and outstanding service while still achieving the operational efficiencies necessary to keep prices low. The company needed to buy inventory in the right quantity to maximize its margins while minimizing its financial exposure. The company realized it needed advanced technology capabilities to automate its forecasting and replenishment processes. The challenge was to find a solution that could help them optimize forecasting and replenishment at its distribution centers while rationalizing and minimizing product inventory.
The Solution
Gruppo PAM decided to implement JDA Advanced Warehouse Replenishment, with support from JDA Consulting Services. The solution defines inventory policies that are guided by economics, balanced with service goals. As a result, the grocer is using its inventory much more strategically. Gruppo PAM can reserve stock for specific stores and specific promotions, based on point-of-sale information. It can also prioritize orders based on urgency and profitability, which was not possible before. One of the best features of JDA Advanced Warehouse Replenishment is its high level of automation. The solution offers a series of ‘levers’ that are easy and fast to use. In keeping with their current performance and their company’s objectives, they can constantly revise and fine-tune these levers. This enables them to better plan their delivery priorities based on order urgency.
Operational Impact
  • Decreased overall inventory by 15 percent
  • Increased customer service levels
  • Improved profitability of purchasing and vendor management activities
  • Replaced manual processes with automation and management by exception
  • Enhanced visibility into cost to serve and other financial considerations
Quantitative Benefit
  • 15% reduction in overall inventory
  • Improved customer service levels
  • Increased profitability of purchasing and vendor management activities

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