Supply & Demand Management
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1 Supply & Demand Management
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3 Planning and Executing Across the Entire Supply Chain Strategic Planning Demand Management Replenishment/Order Optimization Collaboration/ Reporting & Analytics Network Optimization Inventory Optimization Key to Success: Excel in multiple areas
4 Supply & Demand Solutions Collaboration Statistical Demand Management Replenishment Integrated Business Planning Reporting Exception Management Network & Inventory Opt
5 Extensive list of customers across the supply chain
6 Key Challenges Today Accurately forecasting across diverse product mixes Determining what to order and when match demand & supply Right sizing inventory to meet service/margin objectives Maximizing asset utilization & reducing production costs Improving information velocity & visibility internal & external collaboration Increased globalization requiring network rationalization and sourcing optimization
7 JDA Value Impact Demand Management & Supply Optimization Increase Shareholder Value Revenue Growth Asset Productivity Cost Reduction 2% to 8% incremental annual revenue creation with no additional resources 5%-15% reduction in promotions spending Improved ability to respond to competitive initiatives & market changes 15%-30% reduction in transportation costs 12%-33% reduction in inventory 10%-25% improvement in order fill rate 15%-25% improvement in forecast accuracy *These metrics represent a conservative range of actual client benefits b achieved
8 Limited Brands $ 11B Revenue; 3,700 Stores; 100,000 Associates Target assortment and product placement to maximize revenue opportunity Read and React move from chase to planned responsiveness Improved in-stock particularly during promotional activities Glass pipeline view of product availability, location and status
9 McDonald s Business Description The $19 billion leader in quick service restaurants. Comprised of more than 31,000 restaurants, McDonald s runs one of the largest supply chains in the retail industry. Business Challenges Poor forecast accuracy Unacceptable store stock-out levels Restaurant inventory levels unbalanced across the store network The Solution JDA s Demand, Replenishment, Collaborate, Monitor, and Strategy. Selected JDA because of our deep Retail experience and highly scalable architecture. Client Benefits Estimated $96 M in savings Restaurant level forecast accuracy increased to 95% 15% stock level reduction in restaurants 60% reduction in inter-restaurant transshipments, reducing transportation costs
10 IKEA 1,300 suppliers in 54 countries 27 DCs in 16 countries 237 IKEA stores in 34 countries Maintained High Service Level Reduced Inventory by 10% Increase of 10% in forecast accuracy in less than 6 months of use Reduced fluctuations between planned and actual orders towards supplierss
11 Supply & Demand Solutions Collaboration Statistical Demand Management Replenishment Reporting Integrated Business Planning Exception Management Network & Inventory Opt.
12 Supply & Demand Solutions Statistical Demand Management Integrated Business Planning
13 Statistical Demand Management Demand Management Accurate forecasting reduces inventory and improves financials The Challenges Promotional Spikes Forecast uncertainty New Product Introductions JDA Solutions Single Number forecasting Deep Algorithms Advanced Multi-level level Forecasting Your Benefits Prepared for Promotions Improved Forecast Accuracy Streamlined Process Differentiators Automatic Algorithm Selection Real Time Collaborative Planning Scalability Forecast Every Item at Every Location
14 Statistical Demand Management Multi-Level Forecasting: Category/Store and Sub-Department/DC and Item/Store for example Deep Algorithms: Algorithms for fast and slow movers Auto algorithm selection and tuning Recognizes: trends, seasonality and special events Advanced Forecast Consumption Daily demand signals accurately consume base and promotional forecasts to the customer level Smooths: Advanced outlier handling and smooths over unusual spikes and troughs Flags unusual history points
15 Demand Forecasting Process Analyze History & Classify Demand Forecast Items Add Promotions Publish & Collaborate Simple process Fast workflow Effective Execution and Easy to Use Full import and export capability Rapid forecast generation for the enterprise
16 Demand Forecasting Process Analyze History & Classify Demand Forecast Items Decompose History Determine SKU demand behavior Add Promotions Determine algorithm Approve Publish and & Collaborate Execute Offer Set algorithm parameters Demand Classification saves time and improves accuracy
17 Demand Forecasting Process Classify Demand Analyze History & Classify Demand Forecast Items Add Promotions Approve Publish and & Collaborate Execute Offer Category / Store forecasts Sub-Department forecast Item level forecast Top-down and bottom-up reconciliation Seasonal Profile Management New Items Ensures Accurate Forecasts at all levels
18 Demand Forecasting Process Classify Demand Analyze History & Classify Demand Forecast Items Add Promotions Approve Publish and & Collaborate Execute Offer Copy previous promo Add manual promo Marketing/merchandising/ operations introduce promo Add promo at any level Simple to add promotional lift
19 Demand Forecasting Process Classify Demand Analyze History & Classify Demand Forecast Items Add Promotions Publish & Collaborate Daily/Weekly process Makes numbers official Stores previous forecast Publish Forecast Monitor Forecast Accuracy Ensure one number forecasting
20 Demand Classification Process Step I: Analyze history and assign Items to classes Step II: Recommend and configure one or more of: Step III: Add/Update DFUs in Demand: HISTORY Fourier MLR Holt-Winters Create Recommended Models Copy forecast components from existing models Lewandowski Croston
21 Graph History
22 Graph History Graph Forecast TODAY Demand Post Date
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24 Grid History
25 Grid History Grid Forecast
26 Override any number
27 Promo Lift Promo Number
28 JDA Seasonal Profiling Pattern analysis (data mining) to identify persistent seasonality Significantly reduces number of profiles to be managed Exception case management Solution Approach Pre-fabricated scenarios makes everyone an expert Recurring margin increases / yr Reduction in lost sales 5-12% Reduction in safety stock 4-15% Reduction in on-hand inventory 1-4% Different products, different Different locations, products, same different seasonality locations, same seasonality
29 Supply & Demand Solutions Statistical Demand Management Collaboration Integrated Business Planning
30 Forecast Collaboration Collaboration Strategically connecting with all stakeholders The Challenges Accurate Visibility Forecast Variance Promotional Impacts JDA Solutions Integrated collaborative network Internal & External Alerting & Versioning Your Benefits Improved S&OP Consensus Scenario Analysis Streamlined Process Differentiators Actionable Enterprise Visibility Real Time Collaboration Single Version of the Truth
31 Forecast Collaboration Statistical / Supplier Forecast Collaborative Workbench Confirm & Adjust Forecasts Customized Alerting Internal / External Scenario Versioning Flexible Utilization VICS / CPFR Support Private Exchange Capability Connection to E3 Connection to Demand/Fulfillment Approve Consensus Forecast Collaborative Consensus across all Stakeholders
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37 Supply & Demand Solutions Collaboration Statistical Demand Management Replenishment Integrated Business Planning
38 Replenishment & Allocation Replenishment Working Capital Making it WORK for you The Challenges Long lead time planning Slow moving Overstocks Promotional Spikes JDA Solutions Time phased inventory planning Multi-Tiered Replenishment Inventory Optimization Your Benefits Improved Customer Service Optimize Working Capital Reduce Lost Sales Differentiators DC/Store/SKU-Level Replenishment One with Collaborative Demand Planning Scalability Plan every item at every store
39 Replenishment Planning Develop Time-phased multi-tier requirements: product shipment, order, and inventory plans Calculates safety stock: manual, forward coverage and statistical safety stock measures Considers many parameters: demand forecasts, committed orders, safety stock, expiry dates, constrained supply, and stock availability
40 Replenishment Planning Optimize Orders: Respects vendor minimum order size (units & $$) Respects truckload constraints New Vendor EOQ Modeling Manages Product transitions: Promo packs, product revisions Rules ensure older items are depleted first Optimize inventory investment throughout network: Rebalance inventory between warehouses Allocate scarce product
41 Daily Process Flow Review Item Exceptions Analyze Time Phased Plans Review and Approve Orders Simple process Fast workflow Effective execution Full import and export capability Review
42 Review Item Exceptions Review Item Exceptions Analyze Time Phased Plans Review and Approve Orders Review Evaluate exceptions Out of Stock Suggested Orders within lead time Overstocked Items Review on-hand and in- transits System suggests orders Full edit capability
43 Prioritized Exceptions
44 Stock-out out / Stock Low Related Navigation The solution alerts users to the critical areas that need attention, and then provides related links to directly navigate to the appropriate areas where problems can be viewed / resolved
45 Orders within lead time Quantity and Days Late
46 Analyze Time Phased Plan Review Item Exceptions Analyze Time Phased Plan Review & Approve Orders Multi-Echelon View Time Phased Planning Inventory Optimization Respect Constraints Address Limited Supply Review
47 Item and Location Detail Time Phased Replenishment
48 Demand and Supply Information: By day, week or month
49 Details of what makes up supply
50 Projected Inventory Position
51 Days of sales in inventory
52 Graphical View
53 Navigate up and down network true multi-tiered tiered environment
54 Store DC
55 Store DC
56 DC Available to ship=600 Demand from Stores=1130 Available Inventory at DC= 600
57 DC DC What the store wants Store 1 What the store gets Store 2
58 Review and Approve Orders Review Item Exceptions Analyze Time Phased Plans Review And Approve Orders Review Fast Approval Process Lead times, Case Pack and min orders respected Firm Planned Orders stick and are NOT re-planned Time Phased incorporating seasonality Links with ERP/PMM
59 UI Status To do list which provides an order and exception summary Order and Exception Tabs with subcategories
60 Review Orders
61 UI Status Order Header information Order Details and Notes Order Dates Order Exceptions Sku Status Coverage Dates Sku Status Transportation Build Summary
62 SKU Details SKU Details Forecast/History UOM Conversions Order projection graph Suggested Order Quantity Detail Exception Detail
63 Both Products Grow Stronger Through Cross-Pollination JDA E3 Suite JDA Demand/Fulfillment Enhanced demand workbench Enhanced statistical forecasting Advanced promotional optimization Multi-echelon (Multi-tier) Multi-tier enhancement * Order review workbench Order optimization Truck building Auto Order Approval Order Policy Simulation* Deal/Forward Buy Optimization* * Planned in future release
64 E3 to Demand/Fulfillment Side-by-Side Comparison E3 Demand Forecasting Replenishment / Planning JDA Demand JDA Fulfillment Order Execution Optimize Next Order Forecasts at Item/location level Workflow/Exceptions targeted to next order Optimization is focused on generating optimized suggested orders Prescriptive architecture for quick implementations Time phased Demand. Supply, Receipt and Inventory Plan Forecasts at multiple levels Workflows/Exceptions support time phased plan Optimization is focused on efficient distribution and production of supply Architecture is designed for flexible, complex distribution and sourcing networks
65 World class DRP Multi-forecast consumption Multi-echelon time phased planning Inventory optimization Management by exception Perishable item planning Product transitions and introductions Capacity planning (manufacturing and transportation) Raw Material Planning Delivering A Unique Differentiated Offering JDA Fulfillment World class replenishment execution Order optimization Vendor level EOQ Fast Flow distribution Cross-dock Flow through Deep allocation integration Auto order approval Economic trade-off ordering Integrated promotion ordering
66 Review Review Item Exceptions Analyze Time Phased Plan Review and Approve Orders Review any additional exceptions Reports Continuous Improvement Review
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68 Supply & Demand Solutions Collaboration Statistical Demand Management Replenishment Integrated Business Planning Network & Inventory Opt.
69 Network Optimization Network Optimization Achieving Revenue or Service Targets by Improving Product Flow and Asset Utilization The Challenges Increased Supply Chain Network Complexity Improve Time to Market Defining Optimal Product Flow JDA Solutions Network Design and Optimization Your Benefits Reduced Warehouse and Logistics Costs Improved Service Improved Asset Utilization Differentiators Simultaneous Costs and Constraints Optimization One Integral Suite Advanced what-if scenarios
70 Network & Inventory Optimization Network Design Sourcing Optimization Capacity Management Multi-Echelon Inventory Optimization Working Capital Budgeting Facility Network Design Product Flow Optimization Capacity Planning and Budgeting Service Level Setting Working Capital
71 Network Optimization Flexible Supply Chain Modeling Comprehensive Costs and Constraints Modeling Time-Phased Linear Programming and Mixed-Integer Programming High Scalability Simultaneous Costs and Constraints Optimization Off-shore Supplier Plant Warehouse Customer
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74 Inventory Optimization Inventory Optimization Reduce Network wide inventory and still meet service levels The Challenges Reduce network wide inventory Inventory Budget constraints Warehouse space shortages JDA Solutions Multi-location location inventory reduction Network wide safety stock Inventory setting within budget Your Benefits Improve Customer Service Optimize Working Capital Improve space utilization System wide safety stock analysis Differentiators One Integral Suite Advanced what-if scenarios
75 Inventory Policy Optimization Performance Constraints Fiscal Budget Performance Targets Optimize Off-shore Multi-Echelon Inventory Optimization Service Level Inventory Targets Ordering Policies Performance Targets Working Capital Demand Variability Supply Variability
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77 SKU Classification Classify SKUs based on Multiple Criteria Forecast Revenue Margin Cost Demand Variability Historical Trend Assign Service Level Target based on SKU Classification
78 JDA Solution Collaboration Statistical Demand Management Replenishment Integrated Business Planning Exception Management Network & Inventory Opt
79 Exception Management Exception Management Proactive alerting throughout the supply chain The Challenges Difficult to find exceptions General alerting Little Exception Analysis JDA Solutions Monitor and Alert Users Alerts Dashboard Resolution Workflow Your Benefits Proactive Issue prevention Focus on urgent issues Improve Data Analysis Differentiators User Defined Business Rules and Thresholds Exception Detection & Resolution ing of alerts
80 Supply & Demand Solutions Collaboration Statistical Demand Management Replenishment Integrated Business Planning Reporting Exception Management Network & Inventory Opt
81 Reporting Reporting Actionable Visibility Across the Enterprise The Challenges Multiple Data Sources Reactive vs Proactive Difficult to roll up data JDA Solutions Integrated Reporting Role based access Drill through analysis Your Benefits Improved Visibility No data latency Increased Profitability Differentiators User Defined Reports and Layouts Centralized System Automated Report Distribution
82 Reporting and Scorecarding
83 Supply & Demand Solutions Collaboration Statistical Demand Management Replenishment Integrated Business Planning Reporting Exception Management Inventory Policy Optimization
84 Integrated Business Planning S&OP Creating A Cross-Functional Business Review Process The Challenges Balancing Supply & Demand Identifying Constraints Cross-Functional Alignment JDA Solutions Family Level Planning Executive Scenario Mgmt Alerting & Versioning Your Benefits Improved Consensus Profitable Decisions Business Plan Attainment Differentiators Executive Decisions Tied to Supply Chain Execution Qualitative Decision Support & Task Management Single Operating Plan to Run the Business
85 JDA Solution Development In-Development JDA Solution Profitability Simulation New Products Review Demand/Promotion Review Analytic Dashboard Process Workflow & Task Management Supply Review Financial Reconciliation Executive Mgmt Graphical Review Management Business Review Existing JDA Solutions Demand Planning Demand Enterprise Planning Promotions Demand Classification Collaborate Supply Planning Fulfillment Sequencing Supply Master Planning Strategy/IPO Collaborate Trans Planning Logistics Sourcing Transportation Planning Inbound freight mgmt Collaborate
86 High Level Feature Review Feature Aggregate level decision support workbench - Qualitative & Quantitative Views - Graphical Analysis Views - Units/Dollars Views Preconfigured integration with Demand/Fulfillment Exception Management Support Fixed Simulation Support Flexible What-If Simulation Support MS Office Integration Workflow Scenario commit to JDA applications (Dmd+FF)/writeback Delivery Phase Phase I Phase I Phase I Phase I Phase II Phase II Phase II Phase II
87 Overview Page
88 Demand Review
89 Supply Review
90 Reconciliation
91 Task Management
92 Scenario Analysis
93 Supply & Demand Solutions Collaboration Statistical Demand Management Replenishment Integrated Business Planning Reporting Exception Management Inventory Policy Optimization
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