SiteOne Landscape Supply Partners with Chainalytics to Design a Distribution Network and Implement New Demand Planning and Replenishment Technology, Resulting in Cost Reduction and Improved Customer Service
Successfully managing over 100,000 products across 470 locations requires a well-constructed operational model. So when SiteOne Landscape Supply, the nation’s largest supplier of wholesale landscape supplies and golf course accessories in North America, decided to redesign their distribution network as well as their inventory planning and fulfillment process, they decided to engage Chainalytics’ deep supply chain planning expertise and JDA technology implementation experience to lead the way.
The first step in the process was partnering with the Chainalytics to identify the optimal distribution network strategy. This allowed SiteOne to design a distribution network to lower supply chain costs and improve store service. This DC network design was done by Chainalytics’ consultants using Llamasoft’s Supply Chain Design software. The locations for the new distribution centers minimized transportation, warehousing, and inventory costs, while providing the required service to the retail locations. The new DCs created an improved replenishment process to the numerous locations SiteOne manages in 45 states and five provinces. Once this step was complete, Chainalytics’ Integrated Demand and Supply Planning services team worked with SiteOne to implement JDA’s demand planning and replenishment solutions, to drive product availability and to maximize the investment on inventory at the retail locations.
Prior to the partnership with Chainalytics, SiteOne was facing a number of challenges as they looked towards a future distribution network yet to be implemented. At the time, they possessed rudimentary forecasting and inventory planning capabilities, a limited inventory planning technology solution, a high Cost-to-Serve, and frequent product repositioning. SiteOne collaborated with Chainalytics consultants to support the development of future-state planning processes, design a new organizational structure, configure the JDA technology solution, and support the integration and testing as well as the future rollout of the redesigned distribution network.
In order to successfully implement the program of planning improvement initiatives, Chainalytics first conducted an assessment of SiteOne’s current operations, planning, and replenishment processes to gain a baseline understanding of the organization, business practices, and technology. The team scheduled extensive interviews and organized workshops to discover the current state of operations through the perspective of people within the organization. These steps identified operational gaps, allowed development of a high-level plan, and helped pinpoint change management focus areas. All of these components allowed Chainalytics to determine which technology would be best suited for the new network, and laid the groundwork for the implementation.
Next, Chainalytics’ experts worked closely with SiteOne’s team to design and build a future-state infrastructure to begin the implementation. Chainalytics began the development by building a full scale process in a non-production environment, which allowed for configuration and solution testing without impacting current production operations. With the solution having been developed and tested, pilot locations were identified for initial implementation, followed by a phased business-wide rollout.
Through the implementation of a JDA supply chain planning technology, as well as a newly designed distribution network, SiteOne has been able to improve store in-stocks, reduce expedited freight, and return significant productivity to their stores. Furthermore, through the management of inbound freight, SiteOne has been able to consolidate shipments, broker lower rates, drive down overall costs, and improve store service. Finally, the overall distribution improvements are allowing the regional DCs to service small-to-medium build product needs and supply market-based local “hubs” for large bulk products.
Both the transportation and distribution aspects of the transformation have created improved stocking and service levels, for an additional 25,000-50,000 estimated hours of returned productivity to store associates. SiteOne’s supply chain design and planning transformation has given it a competitive advantage, and has positioned SiteOne for continued growth and profitability going forward.
To learn more about how Chainalytics can help with all your planning challenges, contact us at email@example.com.