J.D. Edwards Frees Up Herlitz’s Shelf Space

Situation: Facing fierce competition in the office supplies industry, Herlitz
decided it needed to redefine the retailer-supplier relationship, making the supplier more valuable as a strategic business partner. While its competitors continued down the traditional path of building bigger and better distribution centers, Herlitz saw collaboration with its supply chain as the key to its future.

Process: Using J.D. Edwards’ Advanced Planning Solution, Herlitz increased the accuracy of its own sales forecasting and boosted customer order fulfillment efficiency. J.D. Edwards’ Advanced Planning Solution rendered the supply chain transparent, allowing the interactive,
real-time sharing of critical supply and demand information among customers and suppliers. This gave Herlitz the ability to analyze historical sales data alongside current data that customers electron-ically transmit every day, thereby using previously latent information as a tool to generate valuable sales forecasts and to automate the processing of subsequent orders and shipments. Now, Herlitz can also analyze the impact of a customer’s seasonal fluctuations or special promotions on sales, and adjust its forecast accordingly.

Results: Herlitz customers have reduced shelf stock-outs by 50 percent. At the same time, they are carrying lower inventory levels—freeing up valuable shelf space on the shop floor, permitting expansion of product lines carried, and lowering stock holding costs. The bottom line is that significant improvements have been achieved, both in customer service and inventory turns, which have increased 15 percent.