Case Study

Synchronizing the Supply Chain
Black & Decker Hardware and Home Improvement Gets a Handle on Creating One Synchronized View of Demand with JDA Software

Black & Decker Hardware and Home Improvement Fast Facts
Industry Manufacturer Headquarters Lake Forest, California Description Black & Decker Hardware and Home Improvement is one of three divisions of Black & Decker, the global manufacturer and marketer of quality power tools and accessories, hardware and home improvement products, as well as technology-based fastening systems. Black & Decker HHI manufactures and markets architecturally inspired building products for the residential and commercial markets. Revenues $1 billion Number of Employees 4,000

Business Challenge
Due to the large number of new products Black & Decker HHI introduces every year across dominant retail partners such as Home Depot and Lowe’s, the company was experiencing manufacturing overtime, expedited shipments and excess inventory. This mandated a need for consistent processes, exception-based planning, improved planning cycle times and increased forecast accuracy.

Business Solutions
• JDA® Demand • JDA® Fulfillment • JDA® Master Planning

Business Benefits
“With JDA Demand, we can compare forecasts, shipment history, as well as POS and order history for any of our SKUs at any given time. At the end of 2007 this resulted in a 10 percent improvement in forecast accuracy. The forecast development cycle time used to take five days and now it takes only two days, allowing our planners to focus on other variations.”
- Scott Strickland, vice president of information systems, Black & Decker HHI • Ability to view POS-level forecasts and actuals at the store level • Full order and inventory visibility across the supply chain • Consistent processes across demand, supply and manufacturing planning teams • Exception-based planning • More variable product mix by store • Reduced stockouts and inventory levels for component and finished goods

Quantifiable Benefits
• 10.4 percent improvement in forecast accuracy • 60 percent reduction in forecast development cycle time • 80 percent reduction in monthly production cycles

As a result. “There were no capacity planning or production scheduling capabilities. and no system existed to support mix analysis. vice president of information systems. resulting in multi-site dependencies and lengthening lead times. We also noticed that the supply chain forecasts were inaccurate and there was no planning capability at the customer’s distribution center or store.” said Scott Strickland. After holding separate functionality and software review sessions with several software vendors. At the end of 2007 this resulted in a 10 percent improvement in forecast accuracy. resulting in an incomplete and delayed understanding of changes in demand or supply. “We’re able to quickly understand the demand changes and how our promotion is playing out. we decided we needed to address manufacturing first. 2 . the company noticed that the current system and processes were reactive and poorly integrated. K2 commercial hardware. Black & Decker HHI has the ability to provide information – not just data – to retail category managers quickly and at any level in the supply chain. including JDA® Demand. product promotions and introductions. JDA® Fulfillment and JDA® Master Planning. The manufacturer needed to get a better view of consumer demand as soon as the products were coming off the shelves. enabling it to predict and react to fluctuations in demand faster and more efficiently. After evaluating its supply chain. Price Pfister plumbing and bath accessories.to 14-week lead time on all of its products that are manufactured in China. The solution also helps determine the appropriate product mix and gauge the effectiveness of various promotions.” JDA Demand provides Black & Decker HHI with one single process to utilize the POS data for its frequent line reviews. and how that off-take is accounted for at our distribution centers. The forecast development cycle time used to take five days and now it takes only two days. As prices for materials continue to increase. Black & Decker HHI.” Diving into Demand Black & Decker HHI sought out a consumer-centric planning system and went through an extensive selection process to identify the solution that would best address the company’s vision and functional requirements. Black & Decker HHI is built on innovation and is credited with being the first to bring the biometric lock and new styles to the retail market. as well as Weiser. We can now look at this information at any time and determine what the POS off-take is at one of their stores. the number-one selling lockset in Canada. “We incorporated data into our facilities from all of Lowe’s and Home Depot’s stores. entry sets and faucets – including Kwikset. shipment history. as well as their distribution centers and transfer facilities. hardware and home improvement products and technologybased fastening systems manufacturer. Its product mix includes some of the top brands in locks. America’s number-one selling lockset.” Strickland added. as well as POS and order history for any of our SKUs at any given time.” said Strickland. With Lowe’s and Home Depot as major retail partners. “When we looked at our pain points within our supply chain. We needed to get a view of the rough-cut capacity. JDA Demand was configured to incorporate the retailers’ point-of-sale (POS) data. allowing our planners to focus on other variations. “With JDA Demand. we can compare forecasts. Black & Decker Hardware and Home Improvement is one of three divisions under Black & Decker. Canada. Black & Decker HHI realized it needed to improve management of component manufacturing and inventory to control operational costs. as well as Baldwin. the global power tools and accessories. With manufacturing and distribution facilities in the United States. This allowed Black & Decker HHI to analyze POS information on its products. Black & Decker HHI has a 12. the manufacturer has improved order fill rates to its retail partners while holding less inventory than its competitors. Black & Decker HHI is challenged with managing both offshore and on-shore supply chains where various products with complex product structures are produced.Black & Decker HHI selected industryleading solutions from JDA Software. Mexico and China. as well as frequent price changes.

Registered Trademarks or Service Marks of the companies with which they are associated.30. multi-level replenishment plan down to the store level.jda. This solution begins with the setting of optimal inventory policy decisions through safety-stock strategies. Moving forward. With an integrated solutions offering that spans the entire supply chain from materials to the consumer.” The company first implemented JDA Master Planning at the plant level. This can now be accomplished in four hours.jda. features or specifications of any of the software described herein. control and prioritization.com or e-mail info@jda. transportation. We have seen a major shift from putting out fires on a daily basis to proactively managing inventory reductions across the supply chain. create supply flexibility and achieve fill-rate commitments to customers. To learn more. JDA empowers more than 6. JDA’s multiple service options provide customers with flexible configurations. Manugistics®. WEB www. Black & Decker HHI will be able to generate better data integrity. store-level forecasts are used to determine distribution requirements that pull product through distribution centers. retail and services industries.com. All other company and product names may be Trademarks. Inc. Black & Decker HHI. The use of JDA Master Planning enables Black & Decker HHI to synchronize the flow of materials and resources for multi-stage and multi-site production needs. JDA® Software Group. JDA reserves the right at any time and without notice to change these materials or any of the functions. “One of the key initiatives that we’re focusing on over the next six months is the implementation of JDA Fulfillment. The solution proactively addresses the numerous factors involved in planning to maximize total inventory. visit www. JDA Fulfillment will leverage forecast and end-consumer signals to create an optimized. E3®. JDA is a Registered Trademark of JDA Software Group.“The planning cycle time for each manufacturing facility usually took two days.com EMAIL info@jda. lower total cost of ownership and 24/7 functional and technical support and expertise. Black & Decker HHI realized that it also needed to bridge the gap between supply and demand with the support of JDA. (NASDAQ: JDAS). rapid time-to-value. we have successfully implemented the JDA Demand and Master Planning solutions. Next. Synching Supply and Demand After evaluating its supply chain. and will enable Black & Decker HHI to better predict and respond to changes in consumer demand. All rights reserved. “Meanwhile. improve flexibility and enhance efficiency.000 companies of all sizes to make optimal decisions that improve profitability and achieve real results in the discrete and process manufacturing. such as JDA Demand.” About JDA Software Group. Black & Decker HHI will finalize its implementation of JDA Fulfillment. “It will ensure network optimization by integrating with other sales forecasting tools.” Eijpen added. Inc. The key objective was to establish sustainable operational efficiency.10 . director of supply chain systems. except as approved in JDA’s Software License Agreement with an authorized licensee. It orchestrates all aspects for enhanced productivity. is a leading global provider of innovative supply chain management. Intactix® and Arthur®. JDA leverages the powerful heritage and knowledge capital of acquired market leaders including i2 Technologies®. Inc. Inc. merchandising and pricing excellence solutions. 3 04.” explained Eijpen.” explained Wilfred Eijpen. and it will build truly collaborative relationships internally and with our customers. “Once the solution is rolled out. JDA shall have no warranty obligation with respect to these materials or the software described herein. we will have full visibility into our supply chain. The Supply Chain Company®. providing improved forecast and planning data for buyers. JDA Software Group.com AMERICAS US +1 800 479 7382 Canada & Latin America +1 480 308 3555 EUROPE UK & Northern Europe +44 (0) 1344 354500 France & Southern Europe +33 (0)1 56 79 27 00 Singapore +65 6305 4350 Australia +61 2 8912 7900 ASIA PACIFIC Japan +81 3 6418 1100 China +86 21 2327 9400 Bangalore 4-Color +91 80 4120 8506 Mumbai +91 22 6770 3343 Copyright © 2010. wholesale distribution.

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