BJ's Wholesale Optimizes the Supply Chain
BJ’s Wholesale Club has its eyes on supply chain optimization and is looking for help from JDA Software.
The warehouse club chain is responding to an industry-wide drive toward supply chain transformation as retailers scramble to keep up with rapidly changing consumer demand.
Last month, supply chain software provider JDA announced an expanded, multifaceted partnership with BJ’s to further support the retailer's supply chain strategy and member experience.
When filing for a public offering last June, BJ's prospectus noted that its ability to purchase ample amounts of product at competitive prices affects its net sales and gross profit. “While we believe our vendors have adequate capacity to meet our current and anticipated demand, our level of net sales could be adversely affected in the event of constraints in our supply chain, including our inability to procure and stock sufficient quantities of some merchandise in a manner that is able to match market demand from our customers, leading to lost sales,” the prospectus stated.
As part of the first phase of transformation, JDA worked to help BJ’s upgrade its enterprise planning solution across stores, according to a media release.
Among other strategic and education services provided earlier in 2018, JDA deployed enterprise planning tools that "enabled a smooth and quick upgrade while providing assessments and recommendations for BJ’s business transformation strategy.” JDA partner Tata Consultancy Services assisted with technical aspects of the execution.
In future phases, JDA will implement a broad intelligent fulfillment footprint to help resolve inventory planning, replenishment and order fulfillment obstacles. That effort covers demand planning, fulfillment forecasting, order optimization and demand classification.
“The supply chain has never been more of a critical asset and competitive advantage for companies as they reinvent their strategies. We look forward to supporting BJ’s on its multiyear transformation as a hallmark retailer that exemplifies a truly strategic vision,” said Terry Turner, JDA's president, North American retail.
BJ’s has worked with JDA across enterprise planning, store replenishment and transportation management for more than 10 years.
Path to Purchase Institute members have access to more than 1,000 images and 100 articles of marketing and merchandising activity at BJ's, along with a full Retailer Profile outlining the chain’s operations and strategies.