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Assembling Perfection

Technology Category
  • Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
  • Automotive
  • Construction & Infrastructure
Applicable Functions
  • Logistics & Transportation
  • Procurement
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • System Integration
The Challenge
Würth International, a global wholesaler specializing in the sale of fastening and assembly materials, was facing challenges with its supply chain. With warehouse locations all over Europe and many separate suppliers, the company had very limited transparency into demand across its day-to-day operations and could not support its growth initiatives. The company was experiencing stock shortages and extended delays as goods passed through its supply chain, known as the “bullwhip” effect. To reduce these issues, the company realized it needed a new solution in order to gain much-needed insight into customer demand and a more efficient, automated replenishment process. Würth International required an approach that would increase demand visibility and allow the company to garner the resulting benefits, including inventory reduction, decreased product obsolescence, improved customer service levels and purchasing, as well as achieve material management efficiencies.
About The Customer
Würth International is a global wholesaler and part of the €7.52 billion Würth Group. The company specializes in the worldwide sale of fastening and assembly materials, including more than 100,000 types of screws, screw accessories, dowels and plugs, chemical products, furniture and construction fittings, tools and stock-keeping and picking systems. Founded in 1964, Würth International holds a centralized function within the Würth Group and is responsible for the setting up, acquisition, holding and management of all Würth subsidiaries globally, as well as centrally managing all of the purchasing activities for all of Würth’s subsidiaries located outside of Germany. The company purchases 97 percent of the goods it sells as Würth-branded products from suppliers and also maintains a repacking facility in Slovakia.
The Solution
Würth International selected JDA Software Group as its vendor of choice, licensing JDA Demand and JDA Fulfillment, from JDA’s Intelligent Fulfillment™ solutions. The company launched its pilot implementation of the JDA solutions in France in May 2007. In anticipation of the company’s planned rollout of SAP’s ERP system over the next few years, including linking the system with many of its suppliers, JDA collaborated with Würth International on interface development to successfully integrate the systems and gain maximum benefits from each one. The company went live with JDA Demand in July 2008 at the customer’s two central warehouses in France and also at Würth International’s central warehouses in Switzerland and Slovakia. In September 2008, Würth International also went live with JDA Fulfillment. As a result, all purchasing and replenishment processes now run on the JDA solutions.
Operational Impact
  • Reduced inventory by 30 percent
  • Increased inventory turns from 7.4 to 10
  • Improved productivity by approximately 20 percent
Quantitative Benefit
  • 30% reduction in inventory
  • Increase in inventory turns from 7.4 to 10
  • Approximately 20% improvement in productivity

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