Companies need end-to-end visibility into supply chain solutions, study finds

With supply chains continually under pressure to keep commerce moving, businesses need supply chain solutions that can provide end-to-end visibility, show value, and rapid ROI.

According to “The Total Economic Impact of Blue Yonder Luminate,” a study commissioned by Forrester Consulting on behalf of Blue Yonder in January 2022, Blue Yonder SaaS solutions do just that.

The study’s financial analysis revealed that the companies had a net present value (NPV) of $59.79 million and a return on investment (ROI) of 394%. Most companies have seen a return on investment in less than six months.

The study included interviews with nine decision makers with experience using Blue Yonder’s solutions, including Luminate Logistics – warehouse and transportation management – Luminate Control Tower, Luminate Commerce and Luminate Planning.

“To truly digitally transform your supply chain, businesses need end-to-end visibility, demand planning, omnichannel commerce, and fulfillment capabilities,” said Vidhya Srinivasan, VP -Senior President, Platform and Portfolio Marketing at Blue Yonder.

“Our Luminate solutions, powered by artificial intelligence (AI) and machine learning (ML), provide our customers with data-driven insights to make smarter, more profitable decisions, enabling them to predict and pivot in times of disruption,” he said.

“We believe the Forrester TEI study highlights that customers using our SaaS solutions are realizing real value in the form of strong NPV and ROI, as well as rapid ROI. The customer quotes in the study tell the real story,” says Srinivasan.

A director of e-commerce fulfillment at a fashion retailer said, “DC labor shortages and high-demand events put a premium on order fulfillment. For us, an order backlog of more than seven days is a real problem, and we will often send the item without charging the customer. We have considered restricting the inventory we advertise on our website in the past. With Blue Yonder, that’s no longer a concern.

A Global Sourcing director interviewed by Forrester Consulting also adds, “Our primary implementation risks were business continuity and maintaining service levels, which were already quite high.

“Implementation [ran] fine, so business continuity was not an issue. Early on, we saw an improvement in on-time shipments from 98% to 98.7%. This has led to a reduction in late delivery penalties of up to 5% of net sales.”

Based on calculations for a $10 billion company built by Forrester in the study based on seven maker organizations, the financial benefits of Blue Yonder’s Luminate solutions include:

  • Labor productivities totaling $31.2 million.
  • Transportation costs reduced by $14.1 million.
  • Shrinkage reduction resulting in $15.3 million margin improvement.
  • Reduced out-of-stock inventory resulting in a $6.5 million margin increase.
  • Productivities of e-commerce labor, software and information technology of nearly $1.4 million.
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