Blue Yonder > Case Studies > Dramatically increasing sales and profitability

Dramatically increasing sales and profitability

Customer Company Size

Large Corporate

Region

America

Country

Mexico

Product

JDA Advanced Store Replenishment
JDA Enterprise Planning

Tech Stack

Inventory Management Software

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Revenue Growth
Productivity Improvements
Customer Satisfaction

Technology Category

Functional Applications - Inventory Management Systems

Applicable Industries

Retail

Applicable Functions

Warehouse & Inventory Management
Logistics & Transportation

Use Cases

Inventory Management
Supply Chain Visibility

Services

Cloud Planning, Design & Implementation Services
Training

About The Customer

Headquartered in Mexico City, Mexico, Marti is the largest sporting goods retailer in Latin America. A family-owned business for 80 years, Marti has over 270 stores across Mexico and produces over $400 million in annual sales. Marti is one of five companies that are part of Grupo Marti, all dedicated to sports, sporting events and healthy living. As Marti expanded rapidly in recent years, they discovered that the manual processes and Excel spreadsheets they used to plan replenishments when they had 39 stores could not scale and were no longer adequate for their much larger operations.

The Challenge

Grupo Marti, the largest sporting goods retailer in Latin America, was facing challenges with inventory control and out-of-stock conditions in stores due to rapid expansion and reliance on manual processes and Excel spreadsheets for planning replenishments. As the company grew from 39 stores to over 270, these methods proved inadequate. The company was also struggling with maintaining focus on their basic products, which were a significant part of their business. Another challenge was the inability to factor in seasonality and promotions into their replenishment plans. Communication between stores and operations on inventory plans was also a problem. Marti wanted to extend the view of inventory and demand beyond their operations to improve communication with suppliers and optimize the overall supply chain.

The Solution

To automate and optimize their replenishment process, Marti chose JDA’s Advanced Store Replenishment (ASR) solution. It provides accurate forecasting, inventory visibility and control, and communication capabilities needed to optimize operations across its expanding store network. The solution starts with accurate demand forecasts and store by store inventory visibility, adjusted for factors such as seasonality, promotions and events. This enables Marti to create replenishment plans geared to each store’s specific needs, reducing out-of-stock conditions from 27 percent to just 6 percent within the first nine months of rolling out the system. The improved localization of assortments and reduced out-of-stocks have also enabled Marti to increase the sales of basic products as a percentage of total sales. Marti also leveraged JDA's consulting and education services to define their needs, guide the implementation process, and train personnel on system implementation and usage based on industry best practices.

Operational Impact

Increased sales by 56.1 percent
Increased profitability by 50.3 percent
Out-of-stocks went from 27 percent to 6 percent
Basic product sales went from 6 percent to 19 percent of revenue
More accurate forecasts

Quantitative Benefit

Year over year sales increased by 56 percent
Profits increased by 50 percent
Out-of-stock conditions in basic products reduced from 27 percent to just 6 percent within the first nine months
Basic products’ percentage of total sales increased from 6 percent to 19 percent in the first nine months
Plans to increase basic products’ percentage of total sales to 25 percent going forward