Blue Yonder > Case Studies > Turning Up the Heat

Turning Up the Heat

Company Size

1,000+

Region

America

Country

United States

Product

JDA Demand
JDA Demand Classification
JDA Fulfillment
JDA Order Optimization

Tech Stack

Supply Chain Management Software

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Productivity Improvements

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

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

Goya Foods, Inc. was founded 75 years ago by Prudencio Unanue, a Spanish immigrant to New York City. The company has grown to over $1 billion in annual sales, with 3,000 employees, 1,600 distinct products, six manufacturing facilities and 14 distribution centers in the United States, the Caribbean and Spain. Goya has emerged as a truly global business and a category leader, serving immigrants from the Caribbean, Mexico, and Central and South America. The company prides itself on hiring Hispanic employees who know the flavors and products of their homelands best, as well as partnering closely with local grocers to meet the distinct needs of each neighborhood.

The Challenge

Goya Foods, Inc., a global food company with over $1 billion in annual sales, was facing challenges with its supply chain processes. Despite its growth and success, the company was still holding on to a small business mindset and associated supply chain processes that were limiting its growth. Many of Goya’s processes remained manual when they could be automated to achieve greater efficiency. In addition, Goya’s supply chain model and associated technology systems were based on a transactional approach that focused on inventory purchases instead of beginning with consumer demand and an integrated forecasting process. The company was seeing 5 to 6 percent out-of-stock levels due to its enormous product diversity and lack of an integrated demand planning process. Executives wanted to see that measure fall to 2 percent.

The Solution

Goya turned to JDA Software for support in adding new, technology-driven supply chain capabilities to its proven business model. Goya chose JDA’s Intelligent Fulfillment™ solutions for demand management, fulfillment and order optimization to modernize its global supply chain and prepare the business for a new era of success. JDA’s solutions for demand management and classification helped Goya focus on anticipating consumer needs across its hundreds of SKUs and local markets, so that inventory decisions could be targeted to actual shopper demand. JDA and Goya partnered to create an integrated forecasting and planning process that consolidates demand across all locations and business segments in order to arrive at a “one-number” forecast that drives every inventory and replenishment decision. For products that Goya sources directly from worldwide vendors, JDA Order Optimization generates orders automatically based on the demand forecast and current inventory levels.

Operational Impact

Increased planning productivity by 700 percent
Achieved record service level of 98 percent
Achieved 99.96 percent fill rates for a pilot vendor managed inventory project
Decreased supply costs through bulk-buying strategies

Quantitative Benefit

Reduced out-of-stock rates to just 2 percent, without increasing inventory levels
Buyer planning productivity has improved by 700 percent
Significant transportation savings through smarter transportation of goods
3 percent incremental increase in sales translates into a very quick ROI on new supply chain capabilities