7 Eleven taps JDA Software to drive supply chain transformation
7-Eleven said it ha...
The American chain of convenience stores 7-Eleven is working with JDA Software to drive its supply chain transformation initiative.
7-Eleven said it has successfully deployed a range of JDA Software, Inc. solutions in the JDA Cloud including JDA Demand, JDA Fulfillment and JDA Order Optimisation to expertly manage its inventory and streamline its supply chain processes.
JDA was chosen in order to gain deeper visibility into its inventory to reduce high levels of out-of-stocks and decrease expiries while maintaining its expected 99% service levels.
With JDA, 7-Eleven will fill each store’s perishable orders efficiently while planning for each store’s demand in multiple quantities and load types across multiple distribution centres.
“We have become a team of high-performing, value-added planning aficionados that has achieved extraordinary changes in a short period of time,” said Dean Burkett, 7-Eleven director of demand planning.
“JDA has put 7-Eleven in a position to take control of our inventory, allowing us to maintain our expected 99% fill rates while managing our product expiry/write-offs down to one percent of our inventory holding costs.”
The deployment, which has been managed by JDA partner Cognizant for all technical aspects into and out of 7-Eleven’s main ERP system, has given the company better insight into its inventory as part of the planning process, and driven efficiencies across order planning and demand forecasting.
JDA Services and JDA Cloud were key contributors to the project success, making the implementation agile and faster to deliver. Already, 7-Eleven has been able to cut order lead so stores can order items on their first order date.
Overall, the deployment’s concise demand plan and more accurate inventory ordering enables 7-Eleven to be more proactive with its suppliers about reducing costs across the supply chain.
“By achieving operational excellence, convenience store retailers can gain market share, increase profitability and ultimately, enhance the customer experience” said Terry Turner, JDA president of North American retail.
“With JDA, 7-Eleven is increasing demand visibility across its stores and with its suppliers. Creating one consistent view of demand and inventory across its stores and distribution centres optimises inventory levels and increases inventory turns, while leading to higher levels of customer satisfaction.”
5 Minutes With: Jim Bureau, CEO Jaggaer
What is data analytics, and why is it important for organisations to utilise?
Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems.
The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value.
As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line.
How can organisations use procurement analytics to benefit their operations?
Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more.
Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria.
"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"
Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics.
Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.
How is data analytics used in supply chain and procurement?
Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data.
Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened.
This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions.
Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.
Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply.
Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.