Discount Tire is a leading independent retailer of tires and wheels. Founded in 1960, the company has experienced significant growth, with over 1,200 stores across 39 states, and offers a wide range of tire and wheel products and services. Known for its customer-centric approach, Discount Tire continues to innovate and expand, maintaining a strong presence in the automotive and retail industry.
Success Story
Discount Tire
Demand Planning, Replenishment
Discount Tire optimizes retail operations with Blue Yonder’s AI solutions
The company
The business challenge
As the retailer evolved its portfolio and store footprint through acquisitions, an inevitable disconnect between systems and technology emerged. A new process was needed to increase supply chain visibility to help standardize forecasting and replenishment.
The solution
Discount Tire implemented Blue Yonder’s AI-driven demand and replenishment capabilities to streamline its inventory management. This enables the company to align stock levels with real-time demand, reduce costs, and improve operational efficiency. Ensuring best-selling products are consistently available generates greater customer satisfaction and increased profitability.
“Leveraging Blue Yonder’s demand planning and replenishment capabilities has helped transform and enhance Discount Tire’s forecasting, resulting in increased accuracy and efficiency. These improvements have driven substantial operational efficiencies for us and strengthened our supply chain resilience—ensuring our customers find what they need, when they need it.”
–Dan Newman, Vice President Demand Planning, Supply Planning and Fulfillment, Discount Tire
Transforming operations and driving results
Discount Tire leverages Blue Yonder’s demand planning and replenishment capabilities, built on Microsoft Azure, to enhance its planning process with AI-driven predictions. These technologies deliver highly accurate, probabilistic demand forecasts that incorporate hundreds of internal and external variables. The retailer also established a center of excellence—a specialized hub for Blue Yonder knowledge and innovation—up-leveling employees’ skills and collaboration.
With over 1 million item locations—individual product placements—across its 1,200 stores, Blue Yonder’s technologies help Discount Tire manage these metrics by enhancing inventory management and demand forecasting. It also accurately tracks and optimizes inventory levels, reducing out-of-stock occurrences and ensuring product availability.
Another advantage of Blue Yonder’s demand planning and replenishment capabilities is the automation of routine tasks and integration of input from various departments. These competencies continuously evolve to meet shifting market demands through self-learning algorithms and deeper insights into customer behavior.
Elevating operational efficiency and profitability
Streamlined processes and team structures also helped aid in more responsive and agile operations. Discount Tire, with the help of Blue Yonder, achieved a 600-basis-point increase in 90-day purchase forecast accuracy and a 1,000-basis-point improvement in vendor fill-to-order. These enhancements are helping Discount Tire adapt to market changes and optimize inventory management, securing its competitive edge and supporting long-term growth.
Momentum through connected planning
Discount Tire continues to expand its work with Blue Yonder as it implements dynamic allocation and supersession for demand planning. Next, the retailer will add assortment planning on the merchandising side, creating a seamless connection from financial planning, through assortment, demand planning, and inventory management.
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