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

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

2 Extending Your ERP Systems 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, industry-leading 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.

4 Extending Your ERP Systems 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. 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 revenuegenerating 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:

5 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! 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 End-to-End Capabilities for Your Consumer-Driven Merchandising and Supply Chain Requirements JDA Capabilities Benefits Demand Merchandise Planning Assortment Space and Category Merchandise and Store Operations Selects from multiple forecasting models and optimally tunes parameters Develops forecasts from multiple demand streams, such as: POS data, DC withdrawals, orders and/or shipments Provides flexibility to use multiple hierarchies across products, locations and channels to review and reconcile forecasts across multiple levels of aggregation Provides attribute-based forecast and review management Provides robust functionality to forecast and manage the entire product lifecycle from new product introductions through product phase-out Highlights exceptions based on impact on business objectives Supports and optimizes the strategic, financial, assortment and operational planning activities performed by all participants in the demand chain Establishes common financial objectives for sales, inventory, margin or other key performance indicators (KPIs) across the entire organization 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 Blends the science of planning with the art of product selection to produce plans that meet consumer needs and fulfill business financial objectives Reconciles merchandise and assortment plans Validates assortments to the target customer Factors space constraints into receipt and inventory plans Enables precision merchandising with comprehensive clustering, assortment and space management capabilities Identifies market segmentation based on consumer preferences and builds optimized assortments Provides reporting and analytics to gain insights into category performance and trends Provides a demand signal repository for POS data to analyze market trends and provide productivity scorecards Provides a three-dimensional visual working environment for floor and shelf layout designs Provides central management of all core data Easily executes multiple pricing strategies Provides sophisticated transaction and purchase order management and accurate, real-time inventory management user definable inventory types, transactions and reporting plus tracking of all inventory movements Audits every transaction and offers robust analysis and reporting capabilities Provides store-level associates with the ability to rapidly and accurately complete sales transactions, carry out complex pricing strategies, process and track inventory movement and capture customer information Drives industry-leading forecast accuracy Decreases safety-stock levels through reduced forecast variances Ensures execution decisions are supporting business plans Improves demand visibility across your trading network Improves performance by strategizing and executing to the appropriate level of detail Increases sales Improves planner productivity Reduces inventory investment Shifts focus from data compilation to business-driven analysis Enhances visibility of assortment plans throughout the organization Improves planner productivity Optimizes processes Increases overall planning efficiency and accuracy Increases market share, sales and margins through more profitable, targeted assortments and matching supply with demand Reduces out-of-stocks and markdowns Reduces carrying costs of excess inventory Introduces new products/categories and opens new stores faster Decreases costs associated with managing high volumes of data Increases revenue and profit through effective merchandise management and execution as well as optimized store operations Lowers inventory investment Increases efficiencies and productivity Reduces return fraud as well as lost sales and customers

7 Requirements JDA Capabilities Benefits Price and Promotion and Optimization Replenishment and Allocation Transportation Strategic Network and Inventory Optimization Combines demand forecasting and optimization capabilities with comprehensive price and promotion execution foundations Establishes and manages everyday prices while providing insight to better understand consumers and predict demand Determines which products to promote, at what price, and in which locations to meet financial plans Aligns the promotional process and disparate information from marketing, merchandising and advertising teams Plans and efficiently delivers accurate, targeted consumercentric promotions Identifies and executes the most successful markdown strategies throughout the product lifecycle Provides automated management of complex, highvolume trade programs Develops multi-tier, time-phased orders, shipments and receipts Optimizes multi-tier constrained supply allocations Balances vendor-level and transportation constraints through purchase-order optimization Utilizes multiple safety-stock models from coverage-based calculations to statistical analysis which calculates against presentation and display requirements Supports advanced planning for date-sensitive items Manages item lifecycle transitions and product substitutions Sources percentage of total need from multiple points Supports overstock and alternate source transfers Provides end-to-end global transportation management capabilities from strategic network design and procurement to audit and payment Enables collaborative framework for communicating with trading partners Provides robust, constraint-based load planning and optimization that can model real-world operational constraints Scales from simple, regional networks to complex, global, multi-modal networks Enables comprehensive exception management and alerting Provides visibility into physical and financial supply chain Determines optimal network strategies for sourcing, distribution and transportation based on network costs and constraints Evaluates tradeoffs between service-level targets and required working capital Determines optimal mix of service levels and inventory targets for every product in the end-to-end supply chain network Sets optimal sourcing and inventory policies to drive tactical and operational planning systems Determines long-range capacity plans that include decision making around pre-build versus overtime Supports asset rationalization projects including consolidations, mergers and acquisitions, right-sizing and determines feasibility and projected ROI Develops contingency plans for responding to potentially disruptive supply chain events Increases sales and profitability Reduces inventory costs and improves sell-through Enhances customer service and responsiveness Minimizes obsolescence Eliminates excess inventory as profitably as possible Improves financial predictability and promotions forecast accuracy Increases market share, loyalty and customer retention with a stronger brand Increases sales through improved service levels Reduces inventory Improves inventory turnover Provides full supply chain visibility Enables faster response time Lowers administrative costs Reduces inventory obsolescence Improves asset utilization Reduces procurement and inventory carrying costs Reduces freight expenses Improves delivery performance Improves visibility Reduces order cycle time Improves capacity availability Improves budgetary accuracy Reduces risk Decreases administrative expenses Reduces cost-to-serve Improves customer service Frees up working capital tied to ineffective inventory Reduces total operating costs including procurement and logistics Improves total network utilization or throughput Reduces costs associated with inventory obsolescence Accelerates responsiveness to marketplace changes

8 Extending Your ERP Systems 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 Deploy JDA Extending Your ERP Systems via JDA Cloud Services Protect your JDA software investment and increase business agility by having JDA experts manage, monitor and maintain your JDA solutions. JDA Cloud Services reduces your implementation time and risk while enabling you to quickly and easily deploy new functionality to keep pace with your changing business needs. With your software running in the cloud and upgrades included in your service, you will benefit from solutions that are optimized for your specific business requirements to help ensure that you achieve and sustain a long-term return on your investment. 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 Sales & Operations Planning About JDA Software Group, Inc. JDA Software Group, Inc., The Supply Chain Company, offers the broadest portfolio of supply chain, retail merchandising, store operations and all-channel commerce solutions to help companies manage the flow of goods from raw materials to finished products and into the hands of consumers. JDA s deep industry expertise and innovative cloud platform help companies optimize inventory, labor and customer service levels. As a result, JDA solutions have become the standard for the world s leading retailers, manufacturers and distributors. WEB jda.com 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 South Korea India Copyright 2013, 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