Blue Yonder > Case Studies > The Always Available Supply Chain

The Always Available Supply Chain

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Company Size
1,000+
Region
  • Pacific
Country
  • Australia
Product
  • JDA Order Promiser
  • JDA Supply Chain Planner
  • JDA Inventory Planner
Tech Stack
  • Supply Chain Management Software
  • Inventory Management Software
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
  • Revenue Growth
Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Food & Beverage
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • System Integration
  • Training
About The Customer
Sanitarium is the largest health food company that’s still 100% Australian owned. The company started making healthy, nutritious foods in 1898. Long before it became trendy, Sanitarium was advocating the benefits of wholesome plant-based foods. As the first company to introduce healthy, innovative breakfast foods — with an emphasis on soy and other plant-based ingredients — Sanitarium has helped improve the nutrition and wellness of millions of consumers. Over the years, Sanitarium has seen a fundamental change in its business due to advances in technology. The company has partnered with JDA to adopt end-to-end supply chain solutions that include JDA Supply Chain Planner and Inventory Planner, to drive production, deployment, and capacity planning.
The Challenge
Sanitarium, the largest health food company in Australia, has been advocating the benefits of wholesome plant-based foods since 1898. Over the years, the company has seen a fundamental change in its business due to advances in technology. Sanitarium has partnered with JDA to adopt end-to-end supply chain solutions that include JDA Supply Chain Planner and Inventory Planner, to drive production, deployment, and capacity planning. These solutions have enabled high customer service levels and continued reduction in total stock holding. However, as the markets grew, Sanitarium saw an ongoing need to deliver profitable, high customer service levels to new and existing customer segments. Distribution space and working capital were also a constant challenge with the continuous need to reduce stock holding. The company embarked on a strategy to implement an order promising and allocation management system, using JDA Order Promiser, with the objective to ensure accurate promise dates and quantity, reserve supply for key accounts while minimising order shortage, and reschedule open orders based on the latest supply picture from JDA Supply Chain Planner.
The Solution
Sanitarium is successfully using JDA Order Promiser to offer prioritised services to its customers. JDA Order Promiser dovetails with the other JDA solutions in place to bridge the gap between planning and execution so that supply is allocated to various customer segments primarily driven by the forecast. The solution has replaced the previous allocation process by formalising stock allocation based on a robust prioritisation scheme. Orders can now be confirmed, without the stock being physically present in the distribution centres, after automatically checking for unrestricted stock, quality-inspection stock, in-transit stock, and products due to be manufactured. Previously when orders were received in excess of total available stock, the first customers to place orders received the majority of the stock and any subsequent customers received little to none. Any major change does not come without challenges and JDA worked closely with the Sanitarium team to be as effective as possible. Working together towards a common goal has been a key to the success of this project.
Operational Impact
  • Scope for inventory reduction of up to two days of stock.
  • Improved delivery compliance and service levels resulting in potential revenue increase and greater collaboration with customers.
  • Forward visibility of supply issues rather than a historical view of short supplies resulting in improved management of key accounts.
  • Process improvements and operational efficiencies allowing staff to focus on solving issues rather than data entry.
Quantitative Benefit
  • Inventory reduction of up to two days of stock.
  • Potential revenue increase due to improved delivery compliance and service levels.
  • Improved management of key accounts due to forward visibility of supply issues.
  • Operational efficiencies due to process improvements.

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