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Blue Yonder > Case Studies > Delivering Excellence
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Delivering Excellence

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Consumer Goods
  • Retail
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • Cloud Planning, Design & Implementation Services
  • Software Design & Engineering Services
  • System Integration
  • Training
The Challenge
Federated Co-operatives Limited (FCL) is a unique business model based on partnership and collaboration. The organization is owned by approximately 235 retail members across Western Canada who sell a wide variety of products, from petroleum to home and building supplies as well as groceries, including fresh produce. FCL provides central wholesaling, manufacturing and administrative services to these locally owned retail co-operatives, creating volume and price efficiencies. FCL’s complex supply chain includes four regional distribution centers, a fleet of nearly 400 trailers and tankers, a petroleum refinery, six plants that produce animal feed, and 10 propane distribution branches. As operations research director, Richard Krause is charged with managing the in-bound supply chain at FCL. “We support the end-to-end solutions for ordering, replenishment, maintaining our inventories in our distribution centers, and having product available for our stores’ needs,” Krause explained. “We’re a very unique company in that we’re owned by our stores. That makes customer service a special priority.”
About The Customer
Federated Co-operatives Limited (FCL) is a unique business model based on partnership and collaboration. The organization is owned by approximately 235 retail members across Western Canada who sell a wide variety of products, from petroleum to home and building supplies as well as groceries, including fresh produce. FCL provides central wholesaling, manufacturing and administrative services to these locally owned retail co-operatives, creating volume and price efficiencies. FCL’s complex supply chain includes four regional distribution centers, a fleet of nearly 400 trailers and tankers, a petroleum refinery, six plants that produce animal feed, and 10 propane distribution branches. As operations research director, Richard Krause is charged with managing the in-bound supply chain at FCL.
The Solution
To manage its supply chain complexity and ensure high service levels, FCL relies on capabilities from JDA Software’s Retail Planning and Intelligent Fulfillment™ solutions. FCL added JDA Web Publisher in 2007 when the company wanted to move from a paper-delivered planogramming system to a paperless system. “We’ve been able to incorporate JDA Web Publisher directly into our internal/external portal system for paperless delivery,” said Krause. “We achieved more than CA$500,000 in cost reductions and improved margins by moving from a paper-based delivery system to a Web-based delivery system. Our users — the store managers and store staff that have to set the planograms — have at their fingertips the latest plans that are available for their stores, with the products that they need to change over. They have the freshest product and the newest parts available for their customers.” Most recently, FCL has implemented JDA Demand, JDA Fulfillment, JDA Order Optimization, JDA Demand Classification and JDA Monitor. These solutions have helped FCL make more intelligent “investment buys” on critical products.
Operational Impact
  • Improved forward-buy margins by more than CA$2.5 million in one year
  • Achieved annual savings of CA$500,000 via a Web-based delivery system
  • Improved service levels by 1.2 percent
Quantitative Benefit
  • CA$2.5 million improvement in forward-buy margins in one year
  • Annual savings of CA$500,000 via a Web-based delivery system
  • 1.2 percent improvement in service levels

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