Sally Beauty Faces the Future with Blue Yonder
Customer Company Size
Large Corporate
Region
- America
Country
- United States
Product
- Blue Yonder's demand planning capabilities
- Blue Yonder’s category management capabilities
- Blue Yonder’s fulfillment planning capabilities
Tech Stack
- Demand Planning
- Fulfillment Planning
- Category Management
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Revenue Growth
- Customer Satisfaction
Technology Category
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Retail
Applicable Functions
- Sales & Marketing
Use Cases
- Inventory Management
- Demand Planning & Forecasting
Services
- Data Science Services
- System Integration
About The Customer
Sally Beauty Holdings is a retailer and distributor of professional beauty supplies. The company operates two business units: Sally Beauty Supply, which is aimed at consumers, and Beauty Systems Group, which targets professional stylists. With 20,000 SKUs, 5,000 stores, and annual revenues of over $3.9 billion, Sally Beauty is a significant player in the beauty supply industry. The company serves a diverse customer base, with different purchasing behaviors between consumers and salon professionals. Sally Beauty's goal is to meet every customer where and when they want to shop, creating a broad network strategy that's based on meeting very specific, granular customer needs.
The Challenge
Sally Beauty Holdings, a retailer and distributor of professional beauty supplies, was facing the challenge of managing the complexity of demand planning, fulfillment execution, and category management across two very different markets. The company operates two business units: Sally Beauty Supply, aimed at consumers, and Beauty Systems Group, which targets professional stylists. With 20,000 SKUs, 5,000 stores, and annual revenues of over $3.9 billion, the company needed to increase visibility, responsiveness, and revenues while also managing costs. The pandemic further complicated matters by causing a rapid shift in consumer behaviors and a 30% increase in the rate of buy online/pickup in store (BOPIS) orders.
The Solution
To address these challenges, Sally Beauty partnered with Blue Yonder on a large footprint of planning, execution, and retail solutions. Blue Yonder's demand planning capabilities allowed Sally Beauty to consolidate and synchronize demand signals, as well as external variables, across two businesses and multiple sales channels. This helped the company make more accurate decisions, from inventory staging to product assortments. Blue Yonder’s fulfillment planning capabilities helped Sally Beauty make profitable, flexible decisions by considering channel- and market-specific demand signals, customer service targets, inventory locations, safety-stock policies, and other constraints. Additionally, Blue Yonder’s category management capabilities enabled Sally Beauty to create intelligent, informed merchandising plans that drive revenue growth by leveraging customer insights, maximizing the selling space available, and applying robust analytics.
Operational Impact
Quantitative Benefit
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