Extending Your SAP ERP Systems Leverage Your SAP Investment with JDA s Planning Optimization

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1 Extending Your SAP ERP Systems Leverage Your SAP Investment with JDA s Planning Optimization Achieve the next level of innovation with JDA solutions customized with SAP integrators that extend the value of your SAP ERP systems.

2 Why do leading process and discrete manufacturers rely on JDA solutions along with their ERP systems to optimize their global supply chains? Real Results. Fast. JDA has helped the world s leading process and discrete manufacturers across all industries to achieve significant leaps in ROI and sustainable long-term benefits. Here are some real results that our customers have achieved with our solutions*: Saved a total of $12.5 million in supply chain costs, achieving full ROI in as little as six months Achieved $24 million one-time savings and ongoing annual savings of $8 million Reduced inventory and obsolescence Increased planning efficiency Created more cost-effective routes, resulting in an estimated savings of 1 million per year Eliminated annual fees of 1 million to company s software provider Increased carrier base while decreasing administration costs Estimated reduction of 380,000 miles and 540,000 kilograms of CO 2 Increased profit margins by 40 percent Improved customer service performance by 25 percent Reduced the gap between requested delivery date and actual delivery date Improved forecast accuracy ranging from percent Reduced inventory levels ranging from percent Decreased days of supply by more than 25 percent Realized immediate savings of $20 million in the first six months Delivered turns that were 33 percent better than the industry average Maintained a service level average of 97.5 percent, versus a cross-industry average of 92 percent Decreased freight expenses between 7-13 percent Reduced average cost-per-load reduction as high as 18 percent Improved on-time and in-full rates from 82 percent to above 90 percent Reduced production freeze periods from eight weeks to less than a week Supported a 300 percent increase in volume of new product offerings Gained real-time integration with ERP order management systems * Represents actual results realized by JDA customers

3 Challenge: Gaining Increased Competitive Advantage with Your SAP ERP Implementation With an estimated one-third market share and millions of users, SAP is the leading provider of Enterprise Resource Planning (ERP) software in the world. For more than two decades business leaders have invested millions of dollars and countless resources to run their companies more efficiently with SAP ERP. These massive systems have enabled thousands of companies to execute transactions, integrate data and standardize business processes across finance, procurement, production, sales and logistics. While SAP ERP systems have enabled companies 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 companies to realize a tangible return from their SAP ERP investments. More and more business leaders are recognizing these limitations and they don t have time to wait. Heightened customer expectations, pressures to cut costs, lean initiatives to remove waste and the 24-hour requirements of managing complex global networks are all intensifying the urgency to do more. While SAP ERP can certainly take a company half the way there, ensuring a strong finish requires innovative, specialized and flexible software solutions working in concert with SAP ERP. There have been no issues with the scalability or the ability to add business units to the existing JDA environment. We are very optimistic about our company s future and look forward to depending on JDA to help us meet our goals. Howard Alsdorf, Director, Information Systems, Tyson Foods

4 Deep Supply Chain Optimization Solution: Achieve the Next Level of Innovation with JDA Solutions to Extend the Value of Your SAP Investment For more than 25 years, JDA Software has enabled thousands of manufacturers and 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 you to gain more from your SAP investment. With all the planning, analysis and optimization capabilities required to solve your complex supply chain challenges, JDA solutions can enable you to also realize measurable, industry-leading results in accelerated timeframes. Need proof? Consider the results achieved by some of the more than 150 SAP ERP customers that are seamlessly integrated with JDA solutions. JDA Supply & Improvement Area Demand Chain Solutions Savings Ranges Revenue Lift (Order/Line Fill Rate Increase) 10% -15% Finished Good Inventory Reductions 45% - 50% Work-in-Process Inventory Reductions 20% - 30% Raw Materials Inventory Reductions 25% - 30% Supply Chain Planning Cost Reduction 10% Reduced Obsolescence 30% Drive Profits with a Synchronized View of Customer-Centric Demand Now you can seamlessly integrate your SAP ERP system with JDA s planning, analysis and execution software. Combining the strength of JDA and SAP, your company can develop an extremely responsive supply chain that adapts to customer demand. You can drive more precise forecasting and lower your inventory costs for a positive impact to your company s bottom line. 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 customer demand signals as the primary driver of your demand management practices to gain deeper insight and act fast on revenue-generating opportunities, in order to: Respond to customer trends and purchasing behaviors Make collaborative, demand-shaping decisions to optimize profits and revenues Discontinue non-performers more quickly and replace with market trending products Develop targeted, high-impact promotional campaigns Tailor assortments and planograms to match distinct local preferences Grow-as-You-Go Architecture Supports Modular, Speed-to-Value Implementation Start maximizing your SAP 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 SAP ERP and other solutions, our components also share the following: Common look and feel for quick adoption and reduced enduser training Browser-based deployment for expedited upgrades and installs Configuration flexibility with user-defined columns, tables and processes so you can address additional requirements without code modifications Reduced total cost of ownership, including new hardware investment, for your JDA solution compared to major ERP vendors on older technologies

5 Scales to Process Boundless Transaction Volumes With scalability being of critical importance to any company, JDA has set new industry standards for helping our customers realize their reliability and interoperability goals. Benchmark testing and real-world execution have proven the outstanding performance our customers can achieve every hour, every day. For example, JDA solutions: Generated over one billion forecast records at a rate of more than 66 million forecast records per hour per CPU-Core (mid-range hardware footprint) Evaluated over 2.1 billion supply planning elements, resulting in 410 million planned and constrained replenishment records at a rate of more than 79 million supply planning elements per hour per CPU-Core (high-end hardware footprint) With JDA solutions, you are free from technology limitations. As your needs grow, just add more CPUs, more memory or even new machines. Your possibilities are endless! We found that, in both the Imagewear implementation and the Jeanswear implementation, we achieved a one-time savings of $24 million, as well $8 million each year, in terms of reduced planning times, in people time, in reduced work-in-process inventory and in reduced obsolescence. Ellen Martin former Vice President of Supply Chain Systems, VF Corporation JDA Delivers Comprehensive, Best-of-Breed Capabilities to Extend Your SAP ERP Systems Requirements JDA Capabilities Benefits Demand Classification Analyzes historical data, and through statistical testing, automatically identifies the best algorithms for forecasting each product Automatically tunes optimal parameter settings for each forecast Significantly reduces the manual effort required by demand planners Reduces inventory levels Increases planner throughput and customer service Minimizes obsolete items Demand Decomposition Pricing & Promotion Optimization Separates promotional and base history streams during forecasting for a statistically driven base forecast and an event-driven promotional forecast Develops market response models based on the effects of a promotion or seasonal event Distinguishes seasonality from promotional effects during periods of coexistence Determines the expected forecast lifts (or erosion) based on the defined marketing program planned to execute an event or promotion Suggests best promotions to achieve desired goals Features robust exception management capabilities to identify products affected by trends and promotional lift Improves forecasting accuracy Optimizes inventory levels Provides better consumer insight Improves revenue lift Increases profitability Ensures promotional spend accuracy Increases marketing effectiveness

6 Requirements JDA Capabilities Benefits Replenishment Features advanced consumption logic that senses and Reduces stockouts & Fulfillment responds to real-time demand signals Manufacturing Planning & Scheduling Multi-echelon Inventory Optimization Policy Network Design & Optimization Collaboration Transportation & Logistics Management Sales & Operations Planning (S&OP) Recognizes and responds to the impacts of halo, cannibalization and forward buying Positions the right inventory in the right distribution centers, in the right stores, at the right time Optimizes transportation requirements by planning full truck loads Sequences job assignments based on demand forecasts Generates optimal manufacturing plans, schedules and inventory deployment plans that simultaneously address demand and supply priorities, distribution strategies, inventory policies and capacity constraints Determines how products should be sourced and how materials, work-in-progress and finished goods should flow between facilities Supports make-to-order, discrete and process manufacturing Generates network-wide inventory strategies and the most cost effective inventory plan to set the highest fill rates with the lowest inventory levels Addresses requirements of complex, multi-echelon inventory distribution networks Automatically sets safety stocks and reorder points for any ERP inventory system Determines least cost/maximum profit supply chain infrastructures considering all relevant costs, constraints and service objectives Supports flow optimization, resource optimization and capacity planning Develops a consensus forecast by leveraging statistical forecasts, sales input, promotions and the overall financial plan, using a secure, Web-based portal to consolidate one version of the truth Enables sharing planned procurement with suppliers for forward visibility or with customers to gain insight into projected demands Facilitates extensive vendor managed inventory and replenishment (VMI & VMR) capabilities Supports the entire closed-loop transportation process from long-range strategies and operational planning to day-to-day execution Improves pre-planning, including sourcing, planning and optimization, through management and shipment visibility during transport, and post-movement with payment and performance analysis Aligns operations with planning, sales and marketing Enables seamless collaboration on time-phased data such as category, region or DC forecasts, transportation plans and production schedules Brings teams onto the same page by providing a foundation for consistent planning processes, metrics and reporting Ensures consistent communication and more effective consensus-building processes across the enterprise Improves inventory turns and sell-through Ensures available inventory across the supply chain Creates a lean production environment Minimizes changeovers Improves profitable resource utilization Improves on-time product launches Improves customer service and order fill rates Frees up working capital tied to ineffective inventory Reduces operating costs in logistics, procurement and production Improves total network utilization Determines least cost/maximum profit supply chain infrastructures considering all relevant costs, constraints and service objectives Increases profits Reduces costs Streamlines productivity Enhances trade-partner collaboration Improves forecast accuracy Reduces inventory investment Helps enhance customer satisfaction Decreases out-of-stocks

7 Sample of SAP Customers Extending their ERP Systems with JDA Solutions Abbott Labs Acco Brands Anheuser-Busch Arnotts Biscuits Ltd. Bayer Becton Dickinson Black & Decker Bristol-Myers Squib CHEP Church & Dwight Coca-Cola Bottling Consolidated Cordis Cott Beverages Georgia-Pacific GlaxoSmithKline Hershey IKEA Jo-Ann Stores Johnson & Johnson Kimberly-Clark Kraft LL Bean Novartis (Consumer Health) OfficeMax P&G PepsiCo Perdue Farms Perrigo Pfizer Philip Morris Samsung Sanofi Aventis Sara Lee Texas Instruments The Scott s Company T-Mobile Tyson Foods Unilever VF Corporation Vodafone JDA s products provided clear financial and operating results while improving our capability and capacity. It has enabled us to take on the future. If you re not enabled, you start missing opportunities by hurting customer service levels on one end and product obsolescence on the other. Our day-to-day environment brings us much closer to our customers than other business models in other industries. A lot of people talk about collaboration but we re actually doing it and we certainly would not be as successful without the help of JDA Software. Brett Frankenberg, Director of Supply Chain Planning, Coca-Cola Bottling Company Consolidated

8 JDA was the most functionally rich solution available and enabled us to run the transportation model that precisely suited our business. More than 80 percent of our freight movements are handled by our first-, second- or third-choice carrier for price on every route, and this is a key performance indicator for our business. Peter Surtees European Supply Chain Director, Kimberly-Clark 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 Replenishment & Fulfillment Manufacturing Planning & Scheduling Inventory Optimization Network Design & Optimization Collaboration Transportation & Logistics Management Sales & Operations Planning (S&OP) 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 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