Blue Yonder > Case Studies > Southern African Retailer PEP Relies on JDA to Keep Internal Costs Low — Creating Benefits for Shoppers

Southern African Retailer PEP Relies on JDA to Keep Internal Costs Low — Creating Benefits for Shoppers

Company Size

1,000+

Region

Africa

Country

South Africa

Product

JDA Enterprise Planning
JDA Demand
JDA Fulfillment

Tech Stack

Supply Chain Management Software
Demand Forecasting Software
Inventory Replenishment Software

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements
Revenue Growth

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Retail

Applicable Functions

Logistics & Transportation
Procurement
Warehouse & Inventory Management

Use Cases

Demand Planning & Forecasting
Inventory Management
Supply Chain Visibility

About The Customer

PEP is Southern Africa’s largest single-brand retailer, with 1,600 stores and nearly 13,000 employees. Founded in 1965 with one store in the Northern Cape, today PEP provides a critical service to low-income families across the southern nations of Africa. The company prices its clothing, footwear, and housewares as low as possible in order to make them attainable for consumers. PEP operates at the low end of the market, where few other retailers operate, so its shoppers actually depend on it to provide them with product variety at a low price.

The Challenge

PEP, Southern Africa’s largest single-brand retailer, operates at the low end of the market, providing a critical service to low-income families across the southern nations of Africa. The company strives to price its clothing, footwear, and housewares as low as possible to make them attainable for consumers. This focus on low prices necessitates maximum efficiency and cost control across its supply chain. However, PEP struggled to keep its stores in stock with merchandise due to long lead times and inaccurate orders. The company's ordering calculations were not very advanced and did not take into account all of the constraints. PEP needed technology that would help it achieve more sophisticated order calculations.

The Solution

PEP selected JDA Demand and JDA Fulfillment, from JDA’s Intelligent Fulfillment™ solution, to optimize its stock levels and minimize excess inventory investments. The implementation of JDA Demand and JDA Fulfillment went very smoothly, thanks to assistance from the JDA Services team. The JDA Services team was available on-site and helped support PEP’s goal of knowledge transfer. The JDA solutions have increased the efficiency of critical processes at PEP. The company is now able to run all of its product batches overnight, allowing planners to start working in the morning and complete all of their work sometimes even before the end of the week.

Operational Impact

PEP increased sales for associated products by about 15 percent.
The company grew the gross margin by a significant amount.
PEP increased its in-store availability from 89 percent to 92 percent.
The company realized gains in store-level service performance.
PEP enhanced the efficiency of planning processes.

Quantitative Benefit

Sales for associated products grew by 15 percent.
In-store availability increased from 89 percent to 92 percent.
Store-level service performance has been consistently increasing over the last couple of years, and it is still improving.