Henderson Group Finds Reason to Smile with JDA Planning Solution

Published: June 20, 2006

by Alex Woodie

It may not be the pot of gold at the end of the rainbow, but the return on investment (ROI) of an OS/400-based replenishment solution should have Northern Ireland food seller Henderson Group grinning like a Leprechaun.

Earlier this month, JDA Software Group shared the success that Henderson has enjoyed with Advanced Warehouse Replenishment by E3 (AWR), an OS/400-based application designed to help users save money by keeping just enough stock on hand to meet demand.

In Henderson's case, it needed to optimize the management of 4,500 ambient grocery lines, 1,100 fresh food lines, and 500 frozen food lines, as well as a large selection of non-food lines, that it keeps in its three warehouses. The company, which also operates several grocery store and convenience store franchises, also required a replenishment solution that could satisfy its needs as a retailer.

Before implementing AWR, all replenishment calculations were done manually, says Andrew Logan, Henderson's IT director. "Since automating our replenishment process with AWR, our buyers have access to current information and more accurate data," he says.

AWR has had a positive impact on Henderson's business, according to metrics used by distributors to measure their efficiency, including a 20 percent increase in savings, a 10 percent reduction in wastage, and a 1 percent increase in service levels. What's more, the buyers are planning promotions more effectively, Logan says, "which has enabled the company to increase in-stocks, reduce overstocks, and improve safety stock levels as well."

The bottom line is AWR has exceeded expectations. "Since implementing AWR to manage our grocery and non-food lines in July 2005, our ROI has exceeded our expectations," Logan says, adding that, in the near future, the £330 million company expects to start using the solution to manage replenishment of fresh and frozen food lines.