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Collaboration Makes all the Difference
Leading membership warehouse club collaborates with its supplier, Pharmavite, with impressive results in inventory, sales and forecast accuracy


Scottsdale, AZ — January 16, 2008 — BJ's Wholesale Club, Inc., a Fortune 500 company based in New England, has realized a 29.9 percent reduction in weeks of on-hand inventory, a 23.8 percent increase in comparable Club sales as well as a 31.7 percent decrease in comparable Club inventory on average per week after initiating a collaborative planning, forecasting and replenishment (CPFR) program with Pharmavite, LLC, a leading manufacturer of premium vitamins, minerals and other dietary supplements.

The initiative was supported by JDA Software's Advanced Store Replenishment by E3 and JDA Marketplace Replenish solutions.

The collaboration initiative between BJ's Wholesale and Pharmavite also resulted in a 42 percent boost in inventory turns, a 97.8 percent forecast accuracy average and a 3.9 percent increase in fill rates with performance now averaging 99.1 percent. Moreover, in-stock levels in excess of 99 percent at BJ's Wholesale stores have been maintained since the JDA Software implementation in November of 2005.

Achieving ROI through Collaboration

"With JDA's core replenishment and collaboration solutions, Pharmavite has better visibility into our needs, and is really working with us to make sure that the right inventory arrives at the right BJ's Club," said Stacey Hurd, assistant vice president supply chain integration & financial control at BJ's Wholesale. "The ROI success that we have achieved with the use of JDA solutions proves that huge benefits can be realized by working more closely with our tradin g partners."

Added Art Karrer, Pharmavite's manager of collaborative processes: "By having the right product at the right time on our retail customers' shelves, we can eliminate excess safety stock, plan at a more targeted level and keep the focus on the customer. In supporting our CPFR program, JDA's collaboration solutions deliver. They are quick to implement and are easy to use. We welcome the opportunity to grow our CPFR program with JDA."

Aligning Supply with Consumer Demand

The partners established the CPFR program to address key challenges, including the need to increase sales, improve on-time performance, reduce the percentage of demand forecast errors and uncover gaps in the distribution process. Through increased supply chain visibility, BJ's Wholesale and Pharmavite have also been able to more effectively plan Club sales and promotion volumes, calculate inventory requirements and respond to operational issues, as well as leverage each other's unique product and logistics insights to improve the alignment of supply with consumer demand.

Wayne Usie, JDA Software senior vice president of retail, said, "By forming more strategic collaborative relationships and gaining better visibility into consumer demand, retailers and suppliers can ensure high service levels and prevent lost sales while at the same time reducing inventory. BJ's Wholesale and Pharmavite have been tremendously successful in using JDA solutions to gain maximum ROI and deliver value to the end consumer through collaboration. We are focused on creating a positive impact on our customers' operations and these are just two examples proving that JDA solutions deliver success."