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Blue Yonder > Case Studies > Monitoring the Pulse of the Supply Chain
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Monitoring the Pulse of the Supply Chain

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Healthcare & Hospitals
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • Training
The Challenge
Edwards Lifesciences Corporation, a global leader in the science of heart valves and hemodynamic monitoring, was struggling to understand and meet demand. The company sells roughly 5,500 SKUs for the hemodynamic monitors and critical care products, and speed of delivery is an essential part of its business. When a customer orders a product, they are expecting to perform a surgery that’s been scheduled. If Edwards does not have the product or cannot deliver it quickly enough, surgeries have to be postponed or delayed. In the case of heart valves, not having the product or not being able to deliver it quickly could pose health risks to the patient who needs the heart valve. Prior to 2009, the company was struggling with forecast accuracy. The commercial team had a forecast that was 'aspirational,' and the supply chain side had one that tended to be statistically based. They initially couldn’t come to an agreement about which forecast to use, and as a result, they manufactured a lot of incorrect product mix.
About The Customer
Edwards Lifesciences Corporation is the global leader in the science of heart valves and hemodynamic monitoring. The company manufactures medical products and equipment that provide real-time information on patients’ cardiac output, blood pressure and other critical parameters. Headquartered in Irvine, California, the company has factories in Puerto Rico, the Dominican Republic and Singapore. For the past six years, it has relied on capabilities from JDA Software’s Manufacturing Planning solutions to rapidly deliver its life-saving products to patients around the world. The company sells roughly 5,500 SKUs for the hemodynamic monitors and critical care products, and there are a lot of varieties and different circumstances where a physician might need that kind of product.
The Solution
Edwards Lifesciences Corporation implemented capabilities from JDA’s Manufacturing Planning solutions to transform its supply chain. The company now has the capabilities to create accurate, fact-based forecasts and demand plans, which trigger activity at its manufacturing facilities. The software also enables Edwards to maintain a healthy level of inventory in its warehouse, and then orchestrate the distribution to customers as they place orders. By improving the forecasting process and providing a factual basis for demand planning, JDA has helped Edwards achieve a range of benefits across the supply chain. The company’s commercial teams and supply chain teams around the globe are now working with the same demand information. On the supply side, the technology has enabled Edwards to adopt more flexible manufacturing planning processes and better collaborate with its plants. It has also helped Edwards coordinate supply chain decisions across its factories in Puerto Rico, the Dominican Republic and Singapore to meet demand from customers around the world.
Operational Impact
  • Increased forecast accuracy to 89 percent
  • Reduced overall inventory levels by 13 percent
  • Decreased global expedited freight charges by $2.8 million from 2011-2013
Quantitative Benefit
  • Increased forecast accuracy to 89 percent
  • Reduced overall inventory levels by 13 percent
  • Decreased global expedited freight charges by $2.8 million from 2011-2013

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