Mattel selects JDA to transform its supply chain

Catherine Rowell
- Leadership - Mar 15, 2017

Well-known as a global manufacturer of play, learning, and development toys worldwide, Mattel inspires the wonder of childhood. In a fast-moving, highly competitive consumer brand space, it is imperative for the global toy maker to meet demand efficiently, responsively and profitably. To accomplish this, it has selected JDA Software Group, Inc., to power its supply chain.

Mattel selected JDA® Manufacturing Planning and JDA Flowcasting solutions to drive improvements across its end-to-end supply chain processes, including sales & operations planning, demand planning, master planning, factory planning and customer collaboration. JDA will be working with KPMG to lead the solution design and deployment beginning early 2017, along with JDA Cloud Services to manage the IT environment and upgrade process.

Mattel is a creations company, whose mission is to be the recognized leader in play, learning and development worldwide. Mattel's portfolio of global consumer brands includes American Girl, Barbie, Fisher-Price, Hot Wheels, Monster High and Thomas & Friends, among many others. Mattel also creates a wealth of lines and products made in collaboration with leading entertainment and technology companies. With a global workforce of approximately 31,000 people, Mattel operates in 40 countries and territories and sells products in more than 150 nations.

Since 1945, Mattel’s incredible success has meant being responsive to ever-changing market conditions. Growing Mattel’s business requires product and channel innovation with new routes-to-market (such as digital e-commerce), penetration of new customer segments and growth in emerging international markets. Mattel is also focused on improving overall profitability by optimizing their global supply chain. Mattel determined that it was critical to deploy a global supply chain planning solution to maintain high levels of fulfillment and agility while optimizing margins. By building an integrated supply chain solution, Mattel will be well-positioned to fulfill customer demand effectively while reducing inventory and operating costs.

“We chose JDA as our strategic supply chain partner because of the depth of their experience in consumer products, and manufacturing, along with their superior capabilities in managing complex global, end-to-end supply chain processes,” said Peter Gibbons, Executive Vice President and Chief Supply Chain Officer, Mattel.

Being responsive to key market trends is essential in this fast-moving consumer brand space. Within Mattel’s Toy Box business unit, one of the requirements is to launch toys into the market to coincide with key movie releases, which requires an added layer of responsiveness. Gibbons continues, “Leveraging JDA, we’ll be able to capitalize on changing market dynamics, and push products out quicker and more cost effectively.”

“We have been very fortunate to have worked with Mattel over the last two years on the design of the supply chain control tower and phase one of the new demand driven planning and replenishment processes.  The JDA project in 2016 resulted in significant improvements in on time delivery and fill rates while reducing inventory and overall cycle time.  We are excited to build upon last year’s success and begin the global deployment of the supply chain control tower,” said Rob Barrett, KPMG Principal and Lead Advisory Partner for Mattel.

“As consumer expectations and the retail environment evolve, Mattel will need to continually increase its responsiveness, particularly because the company manufactures and sells into some of the largest and innovative retailers that are known for their rapid customer fulfillment,” said Razat Gaurav, Executive Vice President and General Manager, Chief Revenue Officer, JDA. “As Mattel continues to innovate and launch new toys into the market, it needs a highly integrated, always-on supply chain that helps them meet demand, while boosting profitability. We are thrilled to partner with Mattel on their strategic supply chain rollout in 2017. JDA’s industry-leading Manufacturing Planning solution will offer Mattel a seamless experience on a single platform, spanning diverse supply chain processes such as sales and operations planning, demand, inventory and supply planning, factory planning and cross-enterprise collaboration.”

Mattel’s Executive Vice President and Chief Supply Chain Officer Peter Gibbons will speak at JDA FOCUS 2017, JDA’s annual user conference, occurring April 25-28, 2017 in Las Vegas.

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