Hema transforms its supply chain

Hema transforms

In its quest to grow from a leading European retailer into a global brand, Hema is transforming its supply chain using JDA’s software solutions. The transformation will be driven by technologies such as artificial intelligence (AI) and machine learning (ML) from Blue Yonder, the company that JDA acquired last summer.

Hema has chosen JDA Luminate Demand Edge and JDA Fulfillment to optimize its supply chain. The focus is on enhanced customer experience and higher profitability. “We are hugely keen to grow from a retailer into a global brand. In view of the importance of flexibility, cost awareness and time to market, a modern IT landscape will facilitate this growth,” says Hema’s CIO Carsten Klomp.

“JDA is a good fit with our microservices approach and is, therefore, a key part of our digital supply chain transformation. This enables us to make the company even more data-driven. We see machine learning as offering great opportunities for improving the overall quality and supporting the optimal performance of our employees and our stores.”

Search for technologies to support further supply chain development

In today’s rapidly changing retail environment, Hema – which has more than 750 stores across ten countries – is keen to expand its omnichannel and wholesale activities. In addition to building an even stronger presence on the high street, the company was looking for advanced technologies to support its further supply chain development – and it found them at JDA.

Hema has been a JDA customer for many years, but the supplier has become an even more interesting option following its acquisition of Blue Yonder. Now, Blue Yonder’s proven AI/ML capabilities can be integrated with JDA’s market-leading fulfillment solutions. This allows Hema to transform its supply chain step by step.

“We were impressed by JDA’s fulfillment solution combined with Blue Yonder’s AI/ML automated forecasting engine. The JDA solution achieved the highest forecasting accuracy and actually exceeded our expectations,” says Jan Daan van Erven Dorens, Manager of Supply Chain Development at Hema.

Highly accurate demand forecasts

JDA Luminate Demand Edge is a cognitive SaaS solution that uses ML algorithms to provide highly accurate demand forecasting. This enables Hema to make more informed, risk-aware decisions. JDA Fulfillment will help Hema to optimize margins by having the right stock in the right distribution centres and stores at the right time.

In addition, optimal inventory and distribution plans can be drawn up based on real-life demand signals. This increases product availability and reduces inventory throughout the Hema supply chain. An additional benefit is that it helps the retailer to achieve its global sustainability goals.