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Happy, Healthy and Well-Planned

Technology Category
  • Functional Applications - Inventory Management Systems
  • Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries
  • Healthcare & Hospitals
  • Retail
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Warehouse Automation
The Challenge
Walgreens, the nation's largest drugstore chain with fiscal 2014 sales of $76 billion, serves millions of customers every day. In order to help these shoppers easily find the health, wellness and beauty products they're looking for, Walgreens launched a consumer-centric retailing program back in 2009 to provide localized offerings in its new and remodeled store formats. However, the company faced challenges in managing the vast array of products and ensuring that the right products were available at the right locations. The company needed a solution that could improve planning accuracy and efficiency across the organization.
About The Customer
Walgreens is the nation's largest drugstore chain, with fiscal 2014 sales of $76 billion. The company serves millions of customers every day, offering a wide range of health, wellness, and beauty products. In 2009, Walgreens launched a consumer-centric retailing program to provide localized offerings in its new and remodeled store formats. The company's goal is to help shoppers easily find the products they're looking for, and to improve the overall consumer experience in its stores.
The Solution
To support its consumer-centric retailing program, Walgreens implemented JDA Software’s Category Management solution. This included JDA Space Planning, JDA Floor Planning, JDA Planogram Generator, and JDA Category Knowledge Base. The solution allowed Walgreens to triple its planogram library and increase its merchandisers’ bandwidth significantly. It also made it easier to go through different versions and iterations of the planograms, as Walgreens does not have a one-size-fits-all merchandising model. In addition, Walgreens used the JDA solution to support accurate workforce scheduling at the store level. The company built a labor modeler against its planogram data, which looks at the planograms in a specific store. This allowed the company to calculate the time it takes to move every product in the set, the distance that employees have to walk, and all of the tasks associated with doing a planogram change in the store.
Operational Impact
  • Tripled planogram library, without adding any incremental resources
  • Increased merchandisers’ bandwidth by 300 percent
  • Eliminated 97 percent of planogram-to-store errors
Quantitative Benefit
  • Tripled the size of the planogram library without adding additional resources
  • Increased the bandwidth of merchandisers by 300%
  • Reduced planogram-to-store errors by 97%

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