Blue Yonder > Case Studies > High-Tech Products, High-Tech Forecasting

High-Tech Products, High-Tech Forecasting

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Customer Company Size
Large Corporate
Region
  • America
Country
  • United States
Product
  • JDA Demand
Tech Stack
  • JDA Manufacturing Planning suite
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
  • Telecommunications
Applicable Functions
  • Discrete Manufacturing
  • Procurement
Use Cases
  • Demand Planning & Forecasting
Services
  • Cloud Planning, Design & Implementation Services
  • System Integration
About The Customer
Fujitsu Network Communications provides a diverse range of products to the telecommunications and cable industries. Its major customers include household names such as AT&T, Verizon, Time Warner and Comcast. Fujitsu’s market-leading optical and wireless networking solutions help consumers around the world stay connected and informed. Because the technologies in this industry are mature — and competitors are plentiful — Fujitsu faces special challenges in matching supply profitably with market demand.
The Challenge
Fujitsu Network Communications, a provider of diverse range of products to the telecommunications and cable industries, was facing challenges in accurately forecasting demand and responding efficiently to changing customer needs. The company was using spreadsheets for all its forecasting and planning, which was a time-consuming and labor-intensive process involving around 25 people and taking about six weeks to produce a 12-month rolling forecast. This process was not providing their suppliers with the visibility they needed. Fujitsu wanted to reduce the number of people involved in the process, produce an 18-month rolling forecast every month, and improve forecast accuracy.
The Solution
Fujitsu decided to implement JDA Demand, from JDA Software’s Manufacturing Planning suite, to help transform its supply chain. The company chose JDA because it was able to address specific challenges they had in forecasting highly configurable products. JDA's concept of 'attach rate' allowed Fujitsu to tie the parts to the product, creating dependent demand so that a revenue forecast by product would yield the correct number of parts. In implementing JDA Demand, Fujitsu relied on JDA Strategic Services and JDA Consulting Services to ensure a smooth transition. The result was a complete transformation of the forecasting process at Fujitsu, with a number of top-line and bottom-line benefits.
Operational Impact
  • Cut aggregate forecasting error rate by 20 percent
  • Reduced forecasting staff from 25 to five people
  • Decreased forecasting cycle time from six weeks to two weeks
  • Moved from a 12-month rolling forecast to an 18-month rolling forecast
  • Decreased inventory while maintaining service levels
Quantitative Benefit
  • 20% reduction in aggregate forecasting error rate
  • 80% reduction in forecasting staff
  • 66.67% reduction in forecasting cycle time
  • 50% increase in forecasting horizon
  • Significant improvement in inventory turns to a little over a turn per month

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