Mexican grocery store chain successfully overhauls demand and replenishment processes with JDA solutions

In today’s unified commerce world, profitable fulfillment is an enormous challenge, especially as the digital landscape drives consumer expectations ever higher. That’s why Mexican grocery retail chain Calimax chose to work with JDA Software, Inc. to deploy its market-leading supply chain planning solutions as an integral aspect of its digital transformation strategy.

Founded in downtown Tijuana, Baja California, Calimax opened its first supermarket in 1947. Today, the grocery store chain operates 100 stores and two major distribution centers (DCs) in Tijuana and San Diego. The Calimax DCs are some of the most advanced in the country and play a strategic role in planning the company’s growth, with the capacity to accommodate additional stores in the future. The chain has more than 6,000 employees and imports 10% of its more than 20,000 operational items for sale.

In order to maximize customer service and satisfaction while achieving its financial goals, Calimax embarked on a strategy to standardize its demand and replenishment processes and selected JDA as the leading provider in Latin America. As the deployment began, Calimax and JDA worked together to deploy a robust strategy that would help Calimax can make profitable consumer promises, balance short-term service goals with long-term financial targets and increase channel visibility across the organization.

Calimax recognized a need to improve its unified commerce shopping experience and selected JDA® Demand and JDA® Fulfillment which work together to create an accurate view of demand across all channels while ensuring a superior customer experience. Now Calimax can respond more quickly to changes, define an optimal replenishment plan, accurately distribute inventory, better manage its category strategies and improve its overall performance.

“Calimax has always been a retail innovator in Mexico. Our distribution center is one of the most modern in the country and we have more than 200 trucks that supply all the stores daily. That’s why we needed to implement digital supply chain technology that would allow us to optimize our operations,” said Ignacio Fimbres, CEO, Calimax.

“We are extremely pleased to team with JDA as we continue to grow throughout our region,” said Roger Zapata, chief information officer, Calimax. “JDA’s powerful end-to-end solutions have been critical to transforming our supply chain and giving us the complete visibility we need into our grocery operations across the country. Over the course of this deployment, JDA relentlessly ensured that we are delivering the very best experience for our customers every single day. I would recommend JDA and its partner Ágora because they adapted to our needs and were flexible enough so that the project was successful, without losing focus on the time and cost objectives.”

Ágora has handled all technical aspects of Calimax’s deployment, providing implementation services throughout the duration of this project. With these solutions and the previous implementation of JDA Warehouse Management, Calimax has united planning and execution across the organization, resulting in better replenishment processes to satisfy customers’ needs in the store, and optimized warehouse operations. With JDA, Calimax can go beyond individual siloed technology to achieving fully integrated, end-to-end processes — enabling them to transform fulfillment into a true competitive advantage.

Since going live with JDA Demand and JDA Fulfillment, Calimax has realized a plethora of benefits including:

  • Increased profitability with higher in-stock rates
  • Better forecast accuracy over time
  • Improved customer satisfaction
  • Reduced inventory levels by lowering safety inventory through improved forecast accuracy
  • Additional preparation for seasonal fluctuations, anticipating demands and promotions
  • A single view of demand, which guides decision-making from store-front to back-end logistics
  • Improved demand forecasting accuracy over time, and real-time updates based on historical buying patterns
  • Increased service levels through the elimination and reduction of stockouts as well as missing inventory
  • Ability to proactively guarantee the needs of each store by responding adequately to fluctuations in demand
  • Identified the best time to buy, consolidating needs of different places, in such a way to satisfy the purchase minimums and benefit from favorable conditions, without loading excess inventory resulting in unnecessary cost.

Overall, Calimax has greater visibility of future flows in all nodes of the supply chain, while adeptly responding to demand fluctuations, seasonality and promotions. In the future, they plan to deploy JDA Strategic Pricing to help Calimax determine the optimal pricing and promotional strategies for every product/location combination that they offer.

“The digitalization of the grocery businesses is setting in motion a time of uncertainty and opportunity for the grocery industry,” said Antonio Boccalandro, vice president, Latin America, JDA. “We’re proud to partner with Calimax as they harness JDA solutions to provide a superior shopper experience through increased visibility of customer demands. This is an implementation that will deliver positive results in both customer service and financial returns for years to come.”

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About JDA Software, Inc.

JDA Software is the proven leader in artificial intelligence and machine learning (AI/ML)-driven supply chain and retail solutions for 4,000 of the world’s leading retail, manufacturing and logistics companies. JDA enables an Autonomous Supply ChainTM by connecting its cognitive SaaS solutions from end-to-end – across planning, execution and delivery – with a broad partner ecosystem, empowering customers to better predict and shape demand, transform their product delivery and deliver outstanding customer experiences. JDA’s world-class client brands include 75 of the top 100 retailers, 77 of the top 100 consumer goods companies, and 8 of the top 10 global 3PLs. Running JDA, you can plan to deliver.  blueyonder.com

 

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“JDA” is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group, Inc.

 

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