Personal Collection

Success Story

Personal Collection

Demand Planning, Fulfillment

Personal Collection achieves 99.3% product availability with Blue Yonder

The company

Personal Collection Direct Selling, Inc., one of the leading direct selling companies in the Philippines, offers high-quality, affordable, Filipino-made products across eight categories: home care, personal care, men’s care, baby care, healthcare, fragrances, intimate apparel, and cosmetics. Personal Collection started in 2003 in a small warehouse with just eight employees and eight dealers. It has grown to include thousands of employees, millions of dealers, and over 200 SKUs across all its product categories. In 2023, it opened its first international business unit in Malaysia. The company has close to 700 branches and plans to open an additional 200 new branches in 2025.

The business challenge

Personal Collection faced challenges in distribution planning, compounded by its exceptional growth over recent years. The company struggled to scale quickly to meet market demands. Its reliance on time-consuming and error-prone manual planning processes often took 20 days to plan and execute. The result was just 80% product availability, mismanaged orders, and lost sales. Personal Collection needed a modern, scalable solution to improve demand management and order fulfillment.

The solution

Personal Collection chose Blue Yonder Demand & Fulfillment and began with the fulfillment part of the business process. This incorporated a materials requirements planning (MRP) engine to help manage all the necessary procurements across its central and regional distribution centers and its own manufacturing plants and contract manufacturers—ultimately optimizing inventory and order replenishment. This project was successfully implemented by Blue Yonder partners GenieX and Smartlinks within nine months.

“Our past over-reliance on manual systems caused us problems with stock-outs and unhappy dealers who could not sell to their full potential. We needed to plan our production and sourcing more effectively, in line with demand. Now, with the help of Blue Yonder Fulfillment, we’re seeing 99.3% product availability, together with a 26% reduction in safety stocks. We now have happy dealers and more motivated and strategic planners within our team.”

–Abigail Parazo, General Manager, Personal Collection Direct Selling, Inc.

Better fulfillment for omni-channel sales

Personal Collection faced challenges in its demand and supply planning operations.

Its sales are omni-channel, mainly through house-to-house personal canvassing by dealers, in-store purchases, telephone sales, and from trucks or other temporary locations. With millions of dealers across the region—selling to households and collecting products from hundreds of stores to deliver products—placed enormous pressure on managing demand and fulfillment.

Personal Collection also has a complex, multi-echelon sourcing network consisting of several central and regional distribution centers, third-party logistics operations, its own manufacturing plants in Malaysia and the Philippines, and many contract manufacturers overseas—all with varying lead times to manage.

 

Manual production planning caused 80% product availability 

Previously, production planning was manual and siloed, often making the wrong products in the wrong quantities. The inaccuracy of data also impacted production and on-time delivery. This adversely affected product availability—which was as low as 80%—and often caused stock-outs. Personal Collection could not meet market demands in this ‘pull’ model.

In 2022, Personal Collection decided the most significant problem to address first was its supply fulfillment—it needed to get the supply optimized, so the correct products could be in store at the right time.

“Initially, we had to fix our product availability at all costs, so we built inventories and safety stocks to eliminate the damage to our sales. We boosted product availability up to 96% and got happy dealers—but this was not a sustainable model as we were tying up too much working capital in inventory. We needed to optimize our supply chain. Having already deployed the Blue Yonder software at a global pharmaceutical giant in my previous role, I had every faith in its capabilities.”—Abigail Parazo, General Manager, Personal Collection Direct Selling, Inc.

 

Blue Yonder partners drive project to completion and beyond 

To ensure a successful project, Blue Yonder partners GenieX and Smartlinks provided Personal Collection with various services, including data integration, batch frameworks, impact assessments, training, change management, and support services.

Blue Yonder Fulfillment uses MRP (materials requirements planning). It integrates to the Personal Collection’s NetSuite ERP system to optimize the company’s inventory and replenishment planning, create time-phased inventory plans (that now take just five days to complete), respect multiple time horizons (days, weeks, and months), and recognize the network’s interdependencies on customer service and inventory investment. 

Now that Fulfillment has been fully adopted, the GenieX and Smartlinks team will focus on working with Personal Collection to move from a ‘pull’ to a ‘push’ environment with the implementation of the Blue Yonder Demand solution during 2025. This will provide better knowledge of promotions and forecasts, allowing Personal Collection to be organized centrally rather than driven by the stores.

 

Better demand forecasting will reduce safety stocks further 

Having a more stable and dependable demand signal will help optimize product orders and plan optimum safety stock levels. Ultimately, better demand forecasting is expected to reduce stores’ safety stocks by around three days, which will significantly reduce wastage and improve cash flow.

“GenieX is a Philippines-based company, and we are extremely proud to have supported Personal Collection throughout its supply chain transformation and digitalization process. We look forward to continuing the partnership as Personal Collection progresses to the next stage of its transformation journey.”

–John Boe, Senior Director Supply Chain, GenieX.

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