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ToolsGroup, a global leader in supply chain planning and optimization software, has been selected by Emma – The Sleep Company to support its goal of creating a resilient, intelligent supply chain process to accommodate the company’s rapid growth. Headquartered in Germany, Emma is the world’s largest direct-to-customer sleep brand, known for its award-winning and highly rated boxed-bed mattresses, of which it sold 1.5 million in 2020.
Since its start in 2013, Emma has become one of Europe’s fastest growing companies, with 800+ team members operating in 30 countries worldwide. In 2020, the company achieved a turnover of EUR 405 million (USD 494.7 million), a growth rate of 170% from the previous year, and aims to maintain this exponential growth. However, this speed of expansion made Emma’s supply chain planning process considerably more difficult. The manual and disconnected planning process along with complex supplier and production networks needed to be reworked in order to enable further company growth. After a successful proof-of-concept in Germany, Emma chose ToolsGroup to gain centralized planning and end-to-end (E2E) supply chain transparency. The first stage of the rollout is France and Germany and will expand globally.
“With more people spending time at home, online sales of sleep products have exploded– but there are many regional differences in demand. In partnership with ToolsGroup, we will transform our E2E planning process to provide greater central visibility and network transparency for optimal decision-making in our S&OP process,” said Olga Pshenychna, Head of Operational Planning at Emma.
Emma will replace its old error-prone, manual spreadsheet-based planning with ToolsGroup Service Optimizer 99+ (SO99+) for inventory optimization, fulfillment, demand modeling, and replenishment. In France, the new centralized supply chain planning approach encompasses 500 SKUs within 10 product groups, two warehouses, suppliers from Europe and various sales channels such as the company’s online shop, external marketplaces, and external retailers. In Germany, the supply chain is even more complex with three times as many SKUs, more global suppliers, and direct shipment along with warehouse distribution. The rollout of ToolsGroup is part of Emma’s broader transformation initiative to re-platform its entire IT system throughout the value chain.
“In a high-growth, global company like Emma, with significant distribution complexity, the quality and efficiency of supply chain planning can really separate market leaders from the pack–and this is an extremely competitive market,” said Mauro Adorno, ToolsGroup’s Chief Operating Officer EMEA & APAC. “We are delighted that a leader like Emma has chosen ToolsGroup, not only as a technology supplier, but as a partner for growth.”
About Emma – The Sleep Company
Emma – The Sleep Company is a founder-managed company and with 1.5 million mattresses sold in 2020 the world’s leading direct-to-consumer sleep brand. Founded in 2013 by Dr. Dennis Schmoltzi and Manuel Mueller, the Sleep Innovation company is headquartered in Frankfurt am Main, Germany, with additional locations in Manila (Philippines), Lisbon (Portugal), Shanghai (China) and Mexico City (Mexico). In 2020, the company achieved a turnover of EUR 405 million (USD 494.7 million), a growth rate of 170% from the previous year. On July 1, 2020, Franz Haniel & Cie. GmbH group, a German family-owned investment holding company with focus on sustainability, acquired 50.1% of Emma – The Sleep Company.
About ToolsGroup
ToolsGroup is how organizations improve product availability while right-sizing inventory, no matter how complex their supply chain is or how much demand changes. In a world that rarely follows the rules, our retail and supply chain planning suite optimizes and automates supply chains from production to purchase, enabling manufacturers, distributors and retailers to be ready for anything. That’s why global leaders like Absolut, BP and Harley-Davidson rely on us year after year. For more information, follow ToolsGroup on LinkedIn, Twitter, YouTube, or visit www.toolsgroup.com.
