Chervon partners with Blue Yonder to transform global supply chain
Chervon has chosen to work with Blue Yonder to enhance its global demand forecasting and customer service operations.
The partnership will see Chervon implement Blue Yonder's demand and replenishment capabilities to optimise its supply chain across its business, which operates in Australia, New Zealand and throughout Asia. The project will be supported by Shanghai Compass Information and Science, a Blue Yonder partner.
Supply chain transformation
Chervon, established in 1993, manufactures and sells a broad portfolio of power tools and outdoor equipment, with brands such as EGO, FLEX and SKIL marketed in more than 100 countries. The company has grown its multi-channel distribution network significantly, prompting the need to advance its supply chain management and respond to the complexities of today's global market conditions.
With the adoption of Blue Yonder's cloud-based platform, Chervon aims to increase the accuracy of its sales forecasts, streamline routine planning processes, and enable more effective collaboration within the organisation. According to the companies, these changes are intended to help Chervon quickly respond to changing demand patterns, manage inventory more precisely and improve customer service outcomes.
Among the anticipated benefits is the ability for Chervon to automate routine planning, enhance labour productivity and dynamically adjust inventory levels to better align with real-time demand. This is intended to minimise the occurrence of stock shortages or excess inventory, which can have a significant impact on both customer satisfaction and operational costs.
Industry context
The announcement of the new supply chain strategy comes as manufacturers worldwide face ongoing volatility, stemming from issues such as fluctuating tariffs and unpredictable demand. Chervon's leadership signalled that upgrading its digital capabilities was essential to maintain competitiveness and meet customer expectations in these challenging conditions.
"In today's complex, global supply chain environment, speed and precision are crucial for meeting customer expectations and adapting to rapidly changing conditions," said Antonio Boccalandro, President, APAC, Blue Yonder. "Our demand and replenishment capabilities will enable Chervon to improve and accelerate decision-making and build a more resilient and efficient supply chain."
Blue Yonder supports over 3,000 retailers, manufacturers, and logistics service providers in adopting digital supply chain solutions. For Chervon, the collaboration is expected to drive improvements in both operational efficiency and sustainability, aligning with the company's aim to reduce waste and costs while supporting its business growth.
Operational goals
Chervon aims to ensure its products are consistently available in appropriate markets through a more responsive and fine-tuned supply chain. By leveraging AI-powered planning tools, the company intends to increase visibility into market demand, support better-informed decision-making across different sections of its organisation, and drive continuous improvement in its service levels.
The deployment of Blue Yonder's technology will also enable Chervon to automate routine tasks, freeing staff to focus on higher-value activities and contributing to greater productivity. Enhanced cross-functional collaboration is expected to further aid Chervon in reacting faster and more efficiently to market shifts.
The companies have not disclosed the financial terms of the agreement or any projected timeline for full implementation of the new supply chain systems. The rollout will be managed in partnership with Shanghai Compass Information and Science, leveraging their regional expertise.