Hema grows with digital transformation

Department store Hema has improved forecast accuracy and planner productivity as part of its digital transformation

Hema has close to 800 stores in 13 countries on three continents with 19,000 employees serving over 6 million visitors every week. It also operates an ecommerce presence in those countries.

Seeking an end-to-end omnichannel supply chain solution to optimise its demand forecasting and omni-channel fulfilment capabilities, the retailer turned to Blue Yonder. 

Hema implemented Blue Yonder’s Luminate Planning demand forecasting and fulfilment capabilities to all product groups and channels in 2020.

Forecasting

This cloud-based solutions portfolio – built on Microsoft Azure and powered by artificial intelligence (AI) and machine learning (ML) – provides HEMA with a more accurate view into demand by consolidating and synchronising demand signals, as well as external variables across all stores and online sales channels.

Hema uses demand forecasting to supply the right inventory through the distribution network to minimising stock-outs and maximising inventory turns. 

Jan Daan van Erven Dorens, manager, Supply Chain Development, HEMA said: “We have greatly benefited from the AI forecasting engine, generating a more accurate forecast by taking multiple external variables into consideration and creating less work for our demand planners who no longer have to set up seasonal models and promotional lift factors.”