Blue Yonder > Case Studies > Ace Hardware Transforms Its Supply Chain and Reduces Replenishment and Safety-Stock Inventory by $27 Million

Ace Hardware Transforms Its Supply Chain and Reduces Replenishment and Safety-Stock Inventory by $27 Million

Customer Company Size

Large Corporate

Region

America

Country

United States

Product

JDA Advanced Warehouse Replenishment
JDA Demand
JDA Fulfillment

Tech Stack

Supply Chain Management Software
Demand Forecasting Software
Warehouse Replenishment Software

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements

Technology Category

Functional Applications - Inventory Management Systems
Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Retail

Applicable Functions

Logistics & Transportation
Warehouse & Inventory Management

Use Cases

Inventory Management
Supply Chain Visibility

Services

System Integration
Training

About The Customer

Ace Hardware Corporation was formed in 1924 and has grown to become the world’s largest retailer-owned hardware cooperative with wholesale sales of $3.45 billion and more than 4,400 stores in 60 countries. Ace prides itself on delivering personalized service and has been recognized by J.D. Power & Associates as the highest in “Customer Satisfaction among Home Improvement Retail Stores” for four consecutive years. The company's dedication to consistently providing unmatched service to its stores and customers has been the impetus behind its global supply chain transformation.

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The Challenge

Ace Hardware Corporation, the world’s largest retailer-owned hardware cooperative, has been on a journey of global supply chain transformation. The company's needs became more complex as it expanded globally. Ace had been relying on two different replenishment solutions: JDA to support its domestic vendors and a third-party solution to handle its import vendors that weren’t integrated with the business. The company needed a solution that could support time-phased demand forecasting along with multi-echelon and multi-tier planning capabilities for its domestic and import vendors.

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The Solution

Ace Hardware implemented JDA Advanced Warehouse Replenishment, JDA Demand, and JDA Fulfillment. These solutions provided support for time-phased demand forecasting along with multi-echelon and multi-tier planning capabilities. JDA Fulfillment enabled Ace to quickly configure flexible global networks that could be contracted and expanded to support the company’s international global procurement requirements. It also provided better visibility for all of Ace’s vendors. Ace is the first company to integrate JDA’s Demand engine with the JDA Advanced Warehouse Replenishment system. The implementation was supported by JDA Services, which provided highly skilled and knowledgeable consultants.

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Operational Impact

Ace Hardware managed to modestly improve its already high import service levels with the support of JDA.
Ace can now optimize container orders for its import business – a process the company once relied on its suppliers to handle.
JDA Fulfillment gives Ace greater flexibility in terms of supply chain movements.
The solution also ensures that the company creates full containers and truckloads.
Ace has reduced the amount of inventory required to go into its redistribution facility, cutting space requirements and resulting in an annual savings of $475,000.

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Quantitative Benefit

Reduced inventory by $27 million, including an $11 million decrease in import inventory due to redeployment of safety stock and a planned reduction of $16 million in domestic safety stock.
Increased service levels for imported products.
Decreased space requirements at its redistribution center, resulting in annual savings of $475,000.

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