Europe’s largest drug store, dm, employs more than 93,000 people and operates over 4,000 stores across 14 countries, including Germany, Austria, Italy, and much of Central and Eastern Europe. The retailer offers a diverse range of products—from cosmetics and personal care to health items, household essentials, and organic foods—all supported by sustainability business practices.
Success Story
dm
Demand Planning
Long-term Blue Yonder customer dm improves forecasting with AI and machine learning
The company
The business challenge
In the years dm expanded the most, it faced growing operational challenges, including the need to align demand expectations across its network. Accurate forecasting was essential to help suppliers respond to shifting consumer needs, short-term fluctuations in store demand, and long supplier lead times. Forecasting sales during holidays and vacation periods added further complexity, as did balancing labor needs to avoid overstaffing and understaffing.
The solution
For a period of 21 years now, dm has used Blue Yonder’s software to address these challenges. This long-standing partnership enabled dm to continuously benefit from Blue Yonder’s AI and machine learning capabilities throughout these years—including the development of advanced forecasting models—delivering accurate and scalable insights. As a result, dm could better anticipate store-level demand and align labor and resources.
Driving results through collaborative synergy
With Blue Yonder’s advanced AI and machine learning capabilities—powered by the Microsoft Azure cloud platform—dm’s short-term store demand is more accurately anticipated, enabling teams to respond proactively to fluctuations. To help balance labor needs and maintain operational efficiency, Blue Yonder’s demand forecasting capabilities capture complex demand patterns, including those associated with holidays and seasonal shifts.
Decision-making processes at dm have been enhanced by Blue Yonder’s AI and machine learning competencies, which provide predictive analytics and demand forecasting for up to 52 weeks ahead at a store level.
Optimizing staff planning with data-driven sales forecasts
Blue Yonder's AI-driven forecasts have played an integral role in aligning dm’s staffing with projected sales. By analyzing each store’s daily sales, operating hours, and external factors—such as public and school holidays—the system enables staffing levels to be accurately matched to the expected volume of outgoing goods. These probabilistic forecasting methods enable dm to fine-tune parameters and precisely calculate workforce needs, supporting both operational efficiency and customer satisfaction.
Realizing mutual success through strategic innovation
The 21-year alignment between dm and Blue Yonder—built on consistently close and appreciative cooperation—underscores the value of collaboration and innovation in driving long-term success. Blue Yonder's solutions are deeply embedded in dm's operations, making it an indispensable part of the retailer’s digital transformation journey.
This long-term relationship has been mutually beneficial. By leveraging Blue Yonder’s 23 years of expertise in AI and machine learning, dm has enhanced its operational efficiency, while Blue Yonder has gained valuable insights and feedback from working closely with a major retailer like dm. This synergy has set a benchmark for industry standards in technological advancements and strategic collaboration, propelling growth for both companies.
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