Each of ODP’s brands faced distinct and complex challenges that added layers of operational complexity. Office Depot, its retail arm, struggled with outdated, manual forecasting systems that couldn’t keep pace with the volatile and category-diverse nature of in-store demand, resulting in stock imbalances across its 900+ stores. ODP Business Solutions, serving B2B clients, needed highly tailored forecasting to meet service-level expectations and manage inventory efficiently across a broad product portfolio. Meanwhile, VEYER, the company’s dedicated supply chain and logistics arm, had the dual responsibility of managing fulfillment for both internal brands and third-party clients. It required real-time visibility and automation to scale operations, streamline logistics, and contribute to corporate sustainability goals.
ODP’s forecasting processes had long relied on an aging mainframe-based, in-house built system. As demand volatility increased across product categories such as office supplies, technology, furniture, and services, the limitations of the legacy system became clear. Forecasting rules had to be manually coded, and each product category required handcrafted logic—adding enormous overhead and risk. Efforts to modernize with packaged ERP (enterprise resource planning) solutions also fell short, still requiring excessive manual intervention.
“We found there was too much manual intervention required to get to the necessary accuracy we needed. We sell core office products, technology, furniture, and services. That’s a lot of different sets of rules. We had to handcraft all those rules, and then you must add in the complexity of the multiple channels like our retail channel and our B2B channel, and it just became too complex and required too much manual intervention,” says Parry.
When Office Depot merged with OfficeMax in 2013, the company saw firsthand the capabilities of Blue Yonder’s solutions, which OfficeMax was already using. Impressed by the solution’s forecasting accuracy and automation capabilities, ODP made the strategic decision to roll out Blue Yonder across the business.
Blue Yonder’s demand and supply planning capabilities provide intelligent, automated forecasting for the company’s retail locations and ecommerce fulfillment. It has enabled VEYER to shift from manual forecasting to real-time, data-driven decision-making, dramatically improving inventory turns and accuracy.
With Blue Yonder’s space planning tools, ODP manages planograms and floor space optimization across its 900+ retail stores. These tools integrate directly with inventory systems so that product placement aligns with actual demand. Additionally, ODP is leveraging collaboration with Blue Yonder partner Shipium for transport route planning and carrier selection.
Scaling tangible business results across channels
The results of ODP’s supply chain transformation with Blue Yonder have been extremely quantifiable across multiple business dimensions.
The company has seen a 16% increase in retail forecast accuracy in Office Depot and OfficeMax retail stores and has reduced out-of-stocks and dead inventory—freeing up working capital and ensuring product availability without overstocking.
In VEYER’s B2B and ecommerce operations, it has seen a 5% increase in forecast accuracy, which has translated into a $30 million reduction in inventory. This improvement has enhanced inventory turnover and helped maintain service levels, especially during demand fluctuations.
While ODP’s legacy systems required human review at every stage, Blue Yonder’s automation now enables continuous forecasting and planning with minimal intervention. What once required handcrafted logic is now achieved through intelligent algorithms operating at scale.
The accuracy and visibility provided by Blue Yonder also contributes to ODP’s sustainability goals. By reducing unnecessary transport, packaging waste, and warehouse inventory, VEYER supports ODP’s broader environmental initiatives to protect the planet. “We have programs in place that reduce our packaging and reduce the amount of transportation we need to use, and Blue Yonder certainly helps us with that,” says Parry.
Looking ahead: AI agents, and 3PL growth
As a forward-looking organization, ODP is deeply invested in data-driven decision-making. The company plans to deepen its use of Blue Yonder’s solutions while expanding its service offerings to third-party logistics clients.
AI and automation remain at the core of ODP’s transformation strategy. The company is actively developing intelligent agents in conjunction with Blue Yonder to manage inventory, detect demand trends, and automate decisions across supply chain functions. These AI agents will eventually serve both internal and 3PL clients—offering new levels of proactive service and visibility.
VEYER is in the midst of expanding its role as a full-service logistics partner, not only fulfilling orders but also managing inventory and forecasting on behalf of its clients. Blue Yonder’s robust capabilities will be central to delivering on that promise.
ODP’s ultimate vision is a unified, intelligent supply chain—one that seamlessly integrates real-time planning, fulfillment, and analytics across channels, partners, and platforms.
