Download PDF
Blue Yonder > Case Studies > Martins Comercio e Servicos de Distribuicao S/A Optimizes Inventory with JDA Advanced Warehouse Replenishment
Blue Yonder Logo

Martins Comercio e Servicos de Distribuicao S/A Optimizes Inventory with JDA Advanced Warehouse Replenishment

Technology Category
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Retail
Applicable Functions
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
Services
  • System Integration
  • Training
The Challenge
Martins Comercio e Servicos de Distribuicao S/A (Martins), the largest wholesaler in Brazil, operates a vast and complex distribution system. The company sells 13,000 individual stock-keeping units (SKUs), covers more than 34 million kilometers annually, manages 165,000 square meters of warehousing space, and operates a state-of-the-art fleet of nearly 1,200 delivery vehicles. Despite its size, the company operates on slim margins, making it crucial for Martins to work as effectively and productively as possible. The company needed to optimize every aspect of its operations, from purchasing from vendors to delivering to customers, to maximize its tight profit margins. One of the key areas identified for optimization was inventory management. The company realized that it could save a significant amount of money by minimizing overstocks and optimizing its inventory.
About The Customer
Martins Comercio e Servicos de Distribuicao S/A (Martins) is the largest wholesaler in Brazil. The company sells 13,000 individual stock-keeping units (SKUs), covers more than 34 million kilometers annually, manages 165,000 square meters of warehousing space, and operates a state-of-the-art fleet of nearly 1,200 delivery vehicles. Despite its size, the company operates on slim margins, making it crucial for Martins to work as effectively and productively as possible. The company needed to optimize every aspect of its operations, from purchasing from vendors to delivering to customers, to maximize its tight profit margins.
The Solution
Martins has been using JDA Advanced Warehouse Replenishment for the past 11 years to manage its sophisticated national distribution system. The solution enables Martins to optimize its forecasting and replenishment process by calculating inventory quantities based on advanced, predictive algorithms that incorporate demand, lead time, profitability, and service goals. The system runs at the end of each day, and the next morning, buyers are informed about what they need to order that day. The entire process is extremely fast and efficient. Martins can also formulate orders three months in advance and provide vendors with visibility, so they can optimize their production processes. JDA Advanced Warehouse Replenishment has been a critical component of Martins’ corporate decentralization strategy, aimed at improving logistics costs and quality by efficiently moving large volumes of products closer to customers who are physically dispersed across Brazil.
Operational Impact
  • Reduced inventory levels by 20 percent
  • Decreased lost sales by 6 percent
  • Enabled decentralization strategy
Quantitative Benefit
  • 20 percent reduction in inventory across its distribution system
  • 6 percentage points reduction in lost sales

Related Case Studies.

Contact us

Let's talk!

* Required
* Required
* Required
* Invalid email address
By submitting this form, you agree that IoT ONE may contact you with insights and marketing messaging.
No thanks, I don't want to receive any marketing emails from IoT ONE.
Submit

Thank you for your message!
We will contact you soon.