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The Right Tools for the Job

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Retail
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Demand Planning & Forecasting
  • Inventory Management
The Challenge
RONA, the largest Canadian distributor and retailer of hardware, home renovation and gardening products, faced challenges in managing its inventory across its vast distribution network. The company had thousands of stock-keeping units (SKUs) and millions of SKU locations in more than 17 distribution centers (DCs), making inventory management a complex task. The process to generate a demand forecast to support inventory management was disjointed, with little automation and many hand-offs. RONA needed to understand more precisely where inventory was needed across its entire distribution network. The company was only looking backward and needed to look ahead and act on the future.
About The Customer
RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. With nearly 1,500 sales outlets, of which more than 800 are under one of its banners, and close to 600 clients and independent dealers in its distribution network, the corporation revised its processes to increase efficiency. The volatility in consumer spending in recent years has impacted this large retailer, as shoppers often choose to defer home improvement projects when faced with economic uncertainty. To achieve its goals, RONA needed to understand more precisely where inventory was needed across its entire distribution network.
The Solution
RONA partnered with JDA in 2009 to implement solutions for demand planning and collaboration, from JDA’s Retail Planning suite. Within six months after the solutions went live, RONA began to realize tangible benefits. The company has also realized efficiency benefits in its demand planning capability, thanks to greater automation, fewer hand-offs and exception-based management. Today, 10 analysts at RONA can manage 100,000 active items across more than 600 sites. The efficiency benefits also extend throughout the retailer’s supply chain. RONA relied on the expertise of JDA Services to specify, implement and support the performance of JDA’s solutions. The company recently completed an implementation of JDA Enterprise Planning that will drive new sales and operations planning processes at the retail and executive levels. RONA is also planning to implement JDA Fulfillment.
Operational Impact
  • RONA has realized efficiency benefits in its demand planning capability, thanks to greater automation, fewer hand-offs and exception-based management.
  • Today, 10 analysts at RONA can manage 100,000 active items across more than 600 sites.
  • The efficiency benefits also extend throughout the retailer’s supply chain.
Quantitative Benefit
  • Comparable inventory turns have improved by 10 percent.
  • SKU-weighted forecast accuracy has increased to 75 percent.
  • Promotional item availability has improved to 99 percent.

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