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Information Technology Improves Service Levels document sample
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OPTIMIZES INVENTORY AND IMPROVES SERVICE
LEVELS WITH PORTFOLIO ADVANCED
REPLENISHMENT BY E3
®
Customer Information Business Challenge
To ensure that their customers can find the right tools in stock at
Customer Name whatever Northern Tool channel they shop.
Northern Tool + Equipment Co.
Business Solution
Industry
Hardware retailer To meet their customers’ expectations for fresh assortments by offering
about 250-300 new products each month.
Headquarters • Advanced Store Replenishment by E3®
Burnsville, Minnesota
• Advanced Warehouse Replenishment by E3®
Description • Network Optimization by E3®
Privately held Northern Tool & Equipment
Co. offers more than 16,000 active SKUs • Space Planning by Intactix®
through its catalog and Web site to • Floor Planning by Intactix®
customers across the United States,
Northern Canada and the United • Space Automation by Intactix®
Kingdom. The company also has 58 retail
stores in 11 states and has plans to add
• Efficient Item Assortment by Intactix®
seven more sites by the end of 2006. • Intactix Knowledge Base™
• Intactix Web Publisher™
Revenues
More than $750 million
Business Benefits
JDA’s space management and replenishment applications help Northern
Tool & Equipment Co. achieve a whole new level of efficiency with
planning, promotions and seasonal store resets without having to add much
more personnel. Additionally, they’ve’ been able to balance the right levels of
inventory in their DC’s and their stores to ensure high service levels for all
three of their channels.
“We have lowered our inventory carrying costs while at the same time have increased turns by always
having the optimum amount of products in stock to satisfy our customers’ demand. JDA applications have
been just a huge benefit for us.”
- Todd Wermerson, vice president of information technology,
Northern Tool & Equipment Co.
Case Study: Northern Tool + Equipment Optimizes Inventory and
Improves Service Levels with Portfolio Advanced Replenishment by E3®
For Northern Tool + Equipment Co., it all began with a Introduction of New Products, Growth of New
log splitter. That’s the first product that founder and Stores Supported by JDA
CEO Don L. Kotula began selling out of his garage in JDA’s replenishment applications have also supported
1981. His customers included do-it-yourselfers, the retailer’s growth strategy and implementation of
professional tradesmen and contractors in Northern best practices.
Minnesota. Twenty-five years later, privately-held
Northern Tool has grown to more than $750 million in “We have grown our retail operations by about 10 stores a
revenues and offers more than 16,000 active SKUs year. We’ve been able to do that without carrying the
through its catalog and web site to customers across the burden of too much inventory thanks to the efficiencies
United States, Northern Canada and the United that we are getting from JDA’s software,” said Wermerson.
Kingdom. The company also has 58 retail stores with
plans to add seven more sites by the end of the year.
JDA Space Management Applications to Drive
More Profits at the Shelf
Northern Tool’s successful growth can be attributed to
Now that Northern Tool has optimized its inventory
Kotula sharing his customers’ passion for quality
across its operations, the retailer next wants to realize
products needed for building and repairing. Kotula is
greater efficiencies on its store shelves. To make this
frequently quoted as saying, “balance the right levels of
happen, the retailer is implementing several of JDA’s
inventory in our DC’s and our stores to ensure high
Space Management by Intactix® applications.
service levels for all three channels,” commented Todd
R. Wermerson, vice president of information technology.
“We have excelled at bringing in hot new products. Now
we need to ensure that we are offering the most profitable
“We have lowered our inventory carrying costs while at the
combination on the store shelf by determining which
same time have increased turns by always having the
products should be replaced,” explained Wermerson.
optimum amount of
products in stock to satisfy
our customers’ demand,”
explained Wermerson.
“JDA replenishment
applications have been just
a huge benefit for us.”
“Since JDA’s space management applications integrate Intellect™ application for more accurate strategic insight
with our replenishment applications, we will achieve a on selling curves for Northern Tool’s products and stores.
whole new level of efficiency with our planning, What’s more, JDA’s acquisition of Manugistics in July
promotions and seasonal store resets without having to 2006 gave the retailer another opportunity to consider.
add much more personnel,” said Wermerson.
“We think there may be some benefit for us with JDA’s
Wermerson says that the company’s store managers, acquisition of Manugistics. The fact that JDA’s long-term
“who deal with many changes to their end-caps,” look plan is to bring the product lines together is very
forward to being able to access the new planograms via a attractive for Northern Tool,” said Wermerson.
web browser instead of printing and emailing them.
Up Next: Collaboration and Seasonal Profiling
Once the space management applications have been
successfully installed, Wermerson said that Northern Tool For more information, email info@jda.com
or visit jda.com
may consider JDA’s collaborative applications to improve
Americas Europe
processes and efficiencies with its trading partners. The U.S. 800 479 7382 UK +44 (0) 1344 35 4500
Canada/Latin America South +33 (0)1 56 79 27 00
retailer is also interested in JDA’s Seasonal Profiling by +1 480 308 3555 Nordics +47 66 99 56 70
Asia Pacific
Singapore +65 6355 9500
Japan +81 3 6418 1100
Australia +61 3 9860 1000
China +86 21 6289 7979
