JDA Software Group, Inc., today announced that Nongfu Spring Co., Ltd has implemented JDA® Demand, JDA® Fulfillment, JDA® Collaborate and JDA® Master Planning in order to forecast demand seasonality with accurate precision and therefore better manage inventory across its supply chain as demand varies. The implementation was managed by JDA Services.
Founded in 1996, Nongfu Spring is one of China’s largest manufacturers of bottled water and beverages. Its brands include Nongfu Spring, Orient Leaves, Shriek and Nongfu Garden. The company is headquartered in Hangzhou, Zhe Jiang province, with a strong distribution network covering cities across China.
Previously, Nongfu Spring relied on homegrown technology to forecast demand and manage inventory for its products, many of which have seasonal demand variations. However, these in-house tools lacked the necessary capabilities to account for product seasonality, as well as consider input from across the supply chain. As a result, the company experienced product shortages during peak season, while carrying excess inventory at other times. Manual planning processes were very time- consuming and inefficient.
Supported by JDA solutions, today Nongfu Spring produces a rolling 53-week demand forecast, which is updated weekly with inputs from across the company. This forecast results in rolling daily deployment plans, spanning plants to distribution centers, which guide production. The new, more accurate forecast also supports a rolling 12-month purchasing plan.
“For the first time, we have a consensus forecast that considers feedback from across the supply chain and can be updated weekly as demand conditions change,” said Frank Chen, supply chain director for Nongfu Spring. “Our JDA implementation was successful because it was driven by the highest-level needs of our business. It was a strategic project, not an IT project.”
According to Chen, JDA was selected as the software provider based on its success helping other Chinese companies with similar challenges, as well as the capabilities of its individual solutions. “Our JDA solutions suite is a high-visibility, cross-functional planning platform that improves our supply chain consistency and our ability to collaborate,” Chen stated. “With its advanced logic and arithmetic, JDA software enables our sales, logistics and production functions to operate as an end-to-end, highly collaborative network that operates with a high degree of efficiency and stability.”
“Demand seasonality is a significant challenge as companies seek to optimize inventory levels and support year-round profitability,” said Amit Bagga, regional vice president for Asia Pacific at JDA. “We’re delighted that JDA solutions are playing a central role in helping Nongfu Spring establish a collaborative, highly accurate forecast that guides sourcing, production and inventory management providing a competitive edge that will help Nongfu Spring maintain its market leadership.”
About JDA Software Group, Inc.
At JDA (jda.com), we’re fearless leaders. We’re the leading provider of end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions for more than 4,000 customers worldwide. Our unique solutions empower our clients to reduce costs, increase profitability and improve collaboration so they can deliver on their customer promises every time.
“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.