Supply Chain Makeover
Company Size
1,000+
Region
- Europe
Country
- Sweden
Product
- JDA Fulfillment
Tech Stack
- Supply Chain Management Software
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Customer Satisfaction
- Productivity Improvements
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
About The 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.
The 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.
The 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.
Operational Impact
Quantitative Benefit
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