German DIY retailer, Bauhaus, is using Blue Yonder’s technology to optimise its sales forecasting processes.
Bauhaus, a specialist in home improvement, gardening and workshop products, selected Blue Yonder to help optimise its product presence in select stores and retail centers, as well as improve overall stock levels.
A rapidly growing company, this is the first time Bauhaus is relying on software-supported forecasts. With Blue Yonder’s predictive analytics technology, Bauhaus can significantly reduce the time and effort required when it comes to sales planning for its individual stores and also has the means to more accurately foresee customer demand, the company said. In the home improvement sector, precise and robust forecasts are crucial to ensuring that the correct number of products are directly available to customers on site, at a particular location.
Looking ahead, Bauhaus also plans to use Blue Yonder to fully automate its materials planning processes. Planning managers can already use a simple user interface to obtain direct access to forecasts and big data analytics. In the next phase, Bauhaus intends to include important influencing factors in its forecasts, such as the weather, to further improve goods availability for customers at certain times of the year.
“As a SaaS solution, Blue Yonder can be integrated with our existing system in a simple manner making it very manageable with regards to the personnel time and effort needed to implement a project like this,” stated Jörg Schwede, CIO at Bauhaus. “However, it was Blue Yonder’s methodological competence, most of all, that won us over when assessing the competition. Combined with a very high level of maturity, the software’s innovative approach promises great potential for future collaboration between our two companies.”
The project began in mid-November 2013 and will be implemented in several phases across a one year rollout. Initially, ten Bauhaus specialty centers will use the solution as part of a product group in materials planning. Materials planners based at specific branch locations will then receive planning recommendations for Bauhaus’ product ranges on their mobile devices. Within the year, Bauhaus plans to use Blue Yonder’s solution in all of its 160 German specialty centers. Following a full German rollout, the European phase of the project will begin in late 2014 starting with Austria, Slovenia and the Czech Republic.
Thanks to the Blue Yonder solution, Bauhaus’ specialty centres now have an overview of all relevant planning factors and can make decisions en mass and in an automated manner using real time analyses. This avoids expensive over-stock and under-stock situations. Bauhaus compared a number of solutions before selecting SaaS-provider Blue Yonder due to the flexible nature of its technology and innovative company outlook.
“We are thrilled that BAUHAUS has chosen Blue Yonder to optimize and automate its sales planning processes. There is no doubt that our ability to include sales promotions as well as seasonal conditions in our solution played a large role in the decision. The flexibility of the Blue Yonder solution also fits well with BAUHAUS’ future expansion strategy,” said Rakesh Harji, UK managing director at Blue Yonder.
Bauhaus is present in 17 European countries with more than 220 specialty centers and is continually growing – both nationally and internationally. Blue Yonder’s forecasting software takes into account the conditions of the specific local sales markets and also enables the differences between the specialty centers to be shown in a transparent manner and to be included in sales planning.