Extending Your ERP Systems. Leverage Your ERP Investment With JDA s Planning, Optimization and Execution Solutions

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1 Extending Your ERP Systems Achieve the next level of innovation with JDA solutions to maximize the value of your ERP systems. Leverage Your ERP Investment With JDA s Planning, Optimization and Execution Solutions

2 Why do 70 of the top 100 retailers rely on JDA solutions to optimize their planning, analysis and execution? Real Results. Fast. JDA has helped the world s leading retailers in apparel, food and drug, specialty, discount, department and general merchandise to achieve significant leaps in ROI and sustainable long-term benefits. Here are some of the outcomes that our customers have achieved with JDA Software solutions and services*: Enhanced demand intelligence Increased visibility, insight and predictability helped drive forecast accuracy gains of percent Improved responsiveness and decision making with easy-to-understand views that highlight upstream and downstream demand impacts Improved sales and service Targeted inventory availability achieving the right product, place, price and time, yielding sales increases of 1-10 percent Optimized price, promotion and revenue, resulting in overall sales increases of 7-9 percent Increased customer service levels by as much as 15 percent Maintained a service level average of 97.5 percent, versus a cross-industry average of 92 percent Optimized inventory levels Reduced inventory investment while achieving inventory turn improvements of percent and in-stock positions of percent Reduced inventory levels by as much as 40 percent Decreased days of supply by more than 25 percent Improved decision making with flexible what-if scenarios that allow for projections and simulations Increased profitability and margins Realized immediate savings of $20 million in the first six months of using the JDA solution Boosted logistics management efficiencies, including freight cost reductions ranging from 5-20 percent Increased efficient asset utilization and output by as much as 5-20 percent Enhanced trading partner collaboration Synchronized and aligned decision making with trading partners, driving sales increases of up to 3-5 percent * Represents actual results realized by JDA customers

3 Because JDA Seasonal Profiling enables us to profile at the merchandise-class level using our product codes, in most instances we ve cut the profiling time in half while exponentially increasing the number of products replenished based on their actual seasonal demand. Hemi Thakkar Category Profiler, Ace Hardware Challenge: Gaining a Competitive Advantage With Your ERP Implementation For more than two decades, retailers have invested millions of dollars and countless resources in resources in enterprise resource planning (ERP) systems to run their companies more efficiently. These massive systems have enabled retailers to execute transactions, integrate data and standardize business processes. While ERP systems have enabled retailers to do many things well, these systems were never intended to do all things well. History has proven that it can take significant time for retailers to realize a tangible return from their ERP investment and in today s challenging market, they don t have time to wait. Heightened consumer expectations, pressures to cut costs, the need to understand an item s true net profitability and the 24- hour requirements of managing global networks. While ERP systems can provide a solid foundation of data, retailers need specialized and flexible software solutions that work in concert with their ERP system to unlock added value in their supply chain. Solution: Achieve the Next Level of Innovation with JDA Solutions Extend the Value of Your ERP Investment For more than 25 years, JDA Software has enabled thousands of retailers worldwide to innovate with best-of-breed solutions that are widely considered the platinum standard for supply chain optimization. Proven to dramatically improve performance and visibility from raw materials to the consumer, JDA solutions enable your company to gain more from its ERP investment. With all the planning, analysis and optimization capabilities required to solve your most complex challenges, JDA solutions can also help you realize measurable, industryleading results in accelerated timeframes. Need proof? Consider these results* achieved by JDA customers: Up to a 10 percent increase in sales Up to a 50 percent improvement in inventory turns Up to a 20 percent improvement in asset utilization Up to a 20 percent improvement in asset utilization Up to a 20 percent reduction in freight costs * Based on actual results reported by JDA customers. Drive Profits With a Synchronized View of Consumer-Centric Demand Now you can seamlessly integrate your ERP system with JDA s planning, analysis and execution software for an extremely responsive supply chain that adapts to consumer demand. You can drive more precise forecasting and lower your inventory costs for a positive impact to your company s bottom line.

4 By supporting precision merchandising practices, JDA solutions help you to better identify your markets, gain a clear view of what customers are buying and then execute more efficient assortments. You can rely on consumer demand signals as the primary driver of your demand management practices to gain deeper insight and act fast on revenue-generating opportunities, such as: Responding to consumer trends and purchasing behaviors Making collaborative, demand-shaping decisions to optimize profits and revenues Discontinuing non-performers more quickly and replacing them with market-trending products Developing targeted, high-impact promotional campaigns Tailoring assortments and planograms to match distinct local preferences Offering multiple replenishment strategies based on product lifecycles and attributes Grow-as-You-Go Architecture Supports Modular, Speed-to-Value Implementation Start maximizing your ERP investment by working with JDA to align your implementation with your corporate priorities. Since JDA solutions offer an integrated, modular design, you can initially focus on the functional areas that are most critical to your success and deliver the fastest returns. In addition to each JDA product integrating with one another and with your ERP and other solutions, our components also share the following: Common look and feel for quick adoption and reduced end-user training Browser-based deployment for expedited upgrades and installs Configuration flexibility with user-defined columns, tables and processes so that you can address additional requirements without code modifications Reduced total cost of ownership, including new hardware investment, compared to major ERP vendors on older technologies Scales to Process Retail s Boundless Transactional Volumes With performance being of critical importance for retailers, JDA has set new industry standards for helping our customers realize their scalability and reliability goals. Benchmark testing and deployments at retail sites worldwide have shown the outstanding performance that JDA solutions can deliver. By modeling business needs to the lowest level of detail, JDA solutions enable optimization to the point of execution through unparalleled levels of scalability. As an example, the following customer-driven benchmarks prove our solutions abilities to solve large-scale problems: Forecasted and replenished more than 120 million articles per hour at the store level Generated 1.7 billion replenishments, creating an actionable plan across a complex multi-echelon, time-phased network Another key differentiator for JDA is our proprietary software grid framework, which supports continuous business operation in an end-to-end, fault-tolerant architecture. JDA s framework allows workloads to be intelligently distributed across hardware boundaries. It dynamically allocates processes in the event of hardware failure or if additional capacity is required so that you can stay focused on your business. And with no technical constraints, your possibilities are endless!

5 Sample of JDA s ERP Retail Customers Albertsons LLC American Eagle Outfitters, Inc. American Girl Inc B & Q Plc Barnes & Noble, Inc. Bath & Body Works, Inc. Best Buy Co., Inc. Big M, Inc. BJ s Wholesale Club, Inc. Brown Shoe Company, Inc. / Famous Footwear Chico s FAS, Inc. Genuine Parts Company (NAPA) Guess?, Inc. Hot Topic, Inc. IKEA USA Kenneth Cole Productions Inc Kraft Liz Claiborne, Inc. Loblaw Companies Limited Lowe s Companies, Inc. Luxottica Retail Metro, Inc. Modell s Sporting Goods OfficeMax Incorporated OshKosh B Gosh, Inc. Party City Corporation PETCO Animal Supplies Stores, Inc. Phillips-Van Heusen Corporation Polo Ralph Lauren Corporation Publix Super Markets, Inc. Recreational Equipment, Inc. Rite Aid Corporation Ross Stores, Inc. Shopko Stores, Inc. Shoppers Drug Mart Corporation Sobeys, Inc. Speedway SuperAmerica LLC Sport Chalet, Inc. SUPERVALU INC The Bon-Ton Stores, Inc. The Children s Place Retail Stores, Inc. The Gymboree Corporation The J. Jill Group, Inc. The Pep Boys - Manny, Moe & Jack The Sports Authority, Inc. The Stride Rite Corporation The TJX Companies, Inc. T-Mobile (UK) Retail Ltd Ulta Salon, Cosmetics & Fragrance, Inc. Wawa, Inc. Wegmans Food Markets, Inc. Zale Corporation Ace Hardware has achieved a $1.4-million reduction in safety-stock costs; increased service accuracy from 98.1 to 98.8 percent, 100-percent forecast accuracy and a sales increase accuracy of 4 percent.

6 JDA Delivers Comprehensive, Best-of-Breed Capabilities to Extend Your ERP Investment Requirements JDA Capabilities Benefits Allocation & Features advanced consumption logic that senses and Reduces stock-outs Replenishment responds to real-time demand signals Improves inventory turns and sell-through Develops multi-tier, time-phased orders, shipments Confirms available inventory across the and receipts supply chain Optimizes multi-tier constrained supply allocations Recognizes/responds to the impacts of halo, cannibalization and forward buying Optimizes transportation requirements by planning full truck loads Supports extensive vendor managed inventory and replenishment capabilities Utilizes multiple safety-stock models from coverage-based calculations and statistical analysis, which calculates against presentation and display requirements Manages item lifecycle transitions and product substitutions Supports overstock and alternate source transfers Assortment Management Collaboration Demand Classification Multi-echelon Inventory Policy Optimization Supports, optimizes and reconciles strategic financial, assortment and operational planning Establishes common, enterprise-wide financial objectives for sales, inventory, margin or other key performance indicators (KPIs) Offers dynamic planning by attribute, grouping product, organization and calendar hierarchy members to one or many attributes of those members Centralizes hierarchical and attribute data and integrates enterprise-wide planning processes Identifies segmentation based on consumer preferences and builds optimized assortments Factors space constraints into receipt and inventory plans Uses advanced predictive and descriptive mathematical techniques to streamline the production of size scales, store groups and pre-packs Develops a consensus forecast by leveraging statistical forecast, sales input, promotions and the overall financial plan Provides a secure, single Web-based portal to consolidate one version of the truth Enables sharing of planned procurement with suppliers for forward visibility Analyzes historical data and through statistical testing automatically identifies the best algorithms for forecasting each product Automatically tunes optimal parameter settings for each forecast Generates network-wide inventory strategies and the most cost-effective inventory plan to set the highest fill rates with lowest inventory levels Addresses requirements of complex, multi-echelon inventory distribution networks Automatically sets safety stocks and reorder points for any ERP inventory system Improves performance by strategizing and executing to the appropriate level of detail Helps to increase sales Reduces inventory investment Shifts the focus from data compilation to business-driven analysis Enhances visibility of assortment plans throughout the organization Increases overall planning efficiency and accuracy Supports least cost/maximum profit supply chain infrastructure, taking into consideration all relevant costs constraints and service objectives Increases the accuracy of communication and information exchange Reduces inventory levels Increases planner throughput and customer service by significantly reducing manual efforts Minimizes obsolete items Improves customer service and order fill rates Frees working capital tied to ineffective inventory

7 Requirements JDA Capabilities Benefits Demand Separates promotional and base history streams during Improves forecasting accuracy Decomposition forecasting for a statistically driven base forecast and an Optimizes inventory levels event-driven promotional forecast Supports better consumer insight Develops market response models based on the effects of a promotion or seasonal event Distinguishes seasonality from promotional effects during periods of coexistence Automates the management of location-level seasonality in a product s demand levels throughout a selling season or fiscal year Network Design & Optimization Pricing & Promotion Optimization Space & Category Management Transportation & Logistics Management Determines least cost/maximum profit supply chain infrastructure, taking into consideration all relevant costs constraints and service objectives Supports flow optimization, resource optimization and capacity planning Determines the expected forecast lifts (or erosion) based on the defined marketing program planned to execute an event or promotion Suggests the best promotions to achieve desired goals Identifies products affected by trends and promotional lift with robust exception management capabilities Enables precision merchandising with comprehensive space management capabilities Provides reporting and analytics to gain insights into category performance and trends Provides a demand signal repository for point-of-sale data to analyze market trends and provide productivity scorecards Provides a 3-D visual working environment for floor and shelf layout designs Supports a closed-loop transportation process from long-range strategies and operational planning to day-today execution Improves pre-planning, including sourcing, planning and optimization, through the management and shipment visibility during transport and post-movement with payment and performance analysis Reduces operating costs in logistics, procurement and production Improves total network utilization Increases revenue lift and profits Improves promotional spend accuracy Increases effectiveness Increases market share, sales and margins Reduces out-of-stocks and markdowns Decreases carrying costs of excess inventory Introduces new products and categories faster Increases profits Reduces costs Streamlines processes Enhances partner collaboration and communication Loblaw is focused on improving our core retail processes to enhance the experience of our customers. To that end, our partnership with JDA represents an essential step toward strengthening our ability to drive supply chain enhancements in forecasting, replenishment and transportation. We are confident that JDA will deliver proven technologies appropriate for a grocery retailer of our size and we look forward to increasing the efficiency of our processes through these solutions. Catherine Booth Senior Vice President, Information Technology, Loblaw Companies Limited

8 We needed proven, integrated software solutions based on retail best practices that would help us effectively balance our inventory investments with sales goals and consumer demand, and enable us to leverage every opportunity to drive revenues and increase profits. With the JDA solutions, we are confident that we now have the right solutions to enhance enterprise-wide performance and efficiency, as well as take our business to the next level. Jeff Jones Chief Operating Officer, Chico s FAS About JDA Software Group, Inc. JDA Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company, is a leading global provider of innovative supply chain management, merchandising and pricing excellence solutions. JDA empowers more than 6,000 companies of all sizes to make optimal decisions that improve profitability and achieve real results in the discrete and process manufacturing, wholesale distribution, transportation, retail and services industries. With an integrated solutions offering that spans the entire supply chain from materials to the consumer, JDA leverages the powerful heritage and knowledge capital of acquired market leaders including i2 Technologies, Manugistics, E3, Intactix and Arthur. JDA s multiple service options provide customers with flexible configurations, rapid time-to-value, lower total cost of ownership and 24/7 functional and technical support and expertise. Now you can be among the JDA customers reporting outstanding results and an unsurpassed experience with the following components of JDA s planning optimization solutions: Demand Classification Demand Decomposition Price & Promotion Optimization Allocation & Replenishment Manufacturing Planning & Scheduling Inventory Policy Optimization Network Design & Optimization Collaboration Transportation & Logistics Management Sales & Operations Planning WEB info@jda.com AMERICAS US Canada & Latin America EUROPE UK & Northern Europe +44 (0) France & Southern Europe +33 (0) Singapore Australia ASIA PACIFIC Japan China Bangalore 4-Color Mumbai Copyright 2010, JDA Software Group, Inc. All rights reserved. JDA is a Registered Trademark of JDA Software Group, Inc. All other company and product names may be Trademarks, Registered Trademarks or Service Marks of the companies with which they are associated. JDA reserves the right at any time and without notice to change these materials or any of the functions, features or specifications of any of the software described herein. JDA shall have no warranty obligation with respect to these materials or the software described herein, except as approved in JDA s Software License Agreement with an authorized licensee