Network & Inventory Optimization. JDA Software: Powering the Adaptive Supply Chain with Global Network and Inventory Performance Optimization

Transcription

1 Network & Inventory JDA Software: Powering the Adaptive Supply Chain with Global Network and Inventory Performance Leverage strategic network and inventory policies to enhance service, revenue and asset productivity while minimizing working capital investment.

2 Real Results Sample of JDA s Network & Inventory Customers Why do companies worldwide rely on JDA Software to deliver network and inventory optimization value? Real Results. Fast. JDA Software helps the world s leading retailers and suppliers achieve tangible benefits through innovative network and inventory optimization. Here are some of the real results that our customers have achieved with JDA s Network & Inventory solution*: Determined site selection, disaster planning and net landed cost for distribution centers in a growing discount retail chain with 8,250 stores in 35 U.S. states Designed strategic and tactical network including new distribution center, consolidation and plant-to-dc sourcing for a growing $1.2 billion bottling operation with 54 distribution centers, whose number of items has quadrupled in the last four years Determined what and where to source, resulting in 15 percent reduction in network costs across two manufacturing plants Determined optimal how and when pre-build decisions, including use of resources and trade-offs (truck vs. rail) affecting overall line cost Reduced working capital through rationalization of current distribution centers and cost-effectively determining long-term optimal network configuration Devised contingency plans to respond to changes in variables and the environment Identified savings from inventory reduction Validated current assumptions and question paradigms/trade-offs, including decision to move back pre-build start date upon considering cost Justified capital investment for major manufacturing shifts while improving capacity analysis scope and productivity Determined what and where production decisions across three plants with similar capabilities, while justifying capital expenditures plus evaluating total network cost and most optimal manufacturing configuration Utilized long-term capacity planning to determine number of lines needed for 5-10 year horizon Managed continually changing model without requiring constant consultant engagements BlueLinx Holdings Inc. Bristol-Myers Squibb Company CCBCC Operations LLC Defense Logistics Agency- DPMS Dreyer s Grand Ice Cream Holdings, Inc. Georgia-Pacific Corporation Glazer s Wholesale Distributing Gordon Food Service Inc Heinz Company Ltd Heinz Wattie s Limited Hyundai Mobis James Hardie Building Products Inc Kraft Foods UK Ltd Monsanto Company Paccar Australia Pty Ltd Pactiv Corporation Perdue Farms Publix Super Markets, Inc. Samsung Electronics Co., Ltd. Sara Lee Food & Beverage Schreiber Foods Inc. Swire Beverage Tyson Foods, Inc. Virgin Mobile USA, Inc. Vodafone Ltd Wisconsin Public Service Corporation * Represents actual results realized by JDA customers

3 Adaptive Supply Chain Challenge: Enhancing Service, Revenue and Growth while Minimizing Working Capital Investment Transforming the supply chain into a source of competitive advantage is challenging amidst elongated lead times stemming from globalization and consolidation, economic uncertainty and rising costs. Retailers and suppliers must discover better, more innovative ways of reducing operational costs and working capital investment while also driving continuously improved customer service, revenue and growth. Achieving true optimization requires more than today s status-quo daily planning and execution it requires next-level supply chain network and inventory optimization. Solution: Strategic Supply Chain Planning with Innovative Network and Inventory Companies can achieve higher customer service with lower resource investment now. JDA s innovative Network & Inventory solution provides strategic, end-to-end capabilities to evaluate, design, optimize and ultimately transform your supply chain network whether you are looking to expand or simply optimize your current network resources. Decreasing working capital investment while enhancing service performance enables you to free-up cash for funding growth strategies and product innovations, reducing debt-to-asset ratios and enhancing financial viability. Make-to-stock or make-to-order, this solution can be deployed across industry sectors from food and beverage, consumer durables and apparel and fashion to life sciences and aerospace and defense. Built on our proven Enterprise Architecture to support global planning, it delivers unparalleled performance and scalability. Optimizing Network and Inventory Performance Replace traditional statistics, safety stock and spreadsheets with Network & Inventory to redefine your supply chain network and inventory performance. The solution eliminates inconsistent, ad-hoc planning and subjective problem solving previously driven by individual planners by leveraging enterpriselevel monitoring and optimization, best-practice algorithms and supply chain planning integration capability. You will increase planning productivity, significantly decreasing manual analysis while also benefiting from a low-risk implementation whether deployed as standalone or integrated to other JDA Supply Chain Planning & solutions. Powerful optimization algorithms leverage demand forecast data, sales history, manufacturing and distribution assets, and transportation networks to evaluate all options in determining optimal sourcing, facility selection, long-range capacity planning, service levels and inventory targets for each product-location. Time-phased execution accounts for demand trends and seasonality effects, and the solution also considers existing multi-echelon network complexity, lead times, costs, constraints, plus demand and supply variability. Strategic and Tactical Supply Chain Visibility Gain the supply chain visibility and advance information you and your stakeholders need to make the best strategic and tactical decisions. Our solution uses deterministic and stochastic optimization along with comprehensive cost and constraints capabilities all packaged in a flexible user-interface. Interactive graphical supply chain and analysis workbenches enhance information delivery. The first steps in network optimization involve network design, sourcing optimization and capacity optimization: Network Design: Provides a strategic view, effectively modeling the comprehensive network including suppliers, plants, distribution centers, stores and customers to optimize your baseline and reveal total supply chain costs and margins.

4 Maximize Revenue Free Working Capital Sourcing : Provides a holistic view of time-phased sourcing and resource utilizations displaying total supply chain costs and margins in monthly or quarterly periods for trend, seasonality or promotional impact analysis. Capacity : Enables leveraging of finite capacity and network resources based on changes to demand plans, resource constraints, inventory policies, and production, carrying and transportation costs. Cost and Constraints, Planning for Uncertainties Further optimize your network with Multi-Echelon Inventory. JDA Network & Inventory supports critical inventory management policy decisions including optimal re-ordering point, safety stock and average/maximum stock level determinations by leveraging risk-pooling effects and service-level mix optimization. Ensuring minimized total working capital investment helps you achieve target revenue and service performance. Additionally, Network & Inventory helps you mitigate uncertainties and plan future growth with advanced what-if contingency planning and analysis. With scenario management, you will be well-positioned to handle strategic expansion, environmental or political uncertainties, or other unknowns. Integrated Supply Chain Planning The solution can be leveraged as standalone, or more extensively to handle your daily supply chain planning needs with integration as part of a comprehensive supply chain solution. Network & Inventory s single shared data model seamlessly integrates with JDA Demand, Fulfillment and Master Planning, combining to provide unsurpassed supply chain visibility and optimization, best practices and user-friendly analysis. The shared data model across solutions enables you to customize based on your particular business needs while minimizing implementation and maintenance costs leveraging additional solutions as your business and strategic initiatives evolve. Take the next strategic planning step by incorporating working capital budget as a constraint in your multi-echelon inventory optimization process. You can then optimize your service-level mix across all network items and locations while gaining feasible, realistic and detailed visibility into how your working capital is used to generate revenue and satisfy customer service. Only with JDA s Network & Inventory do you have the comprehensive ability to optimize strategic network and inventory performance with budget consideration.

5 JDA Delivers Innovative Network & Inventory that Reduces Costs and Drives Service, Revenue and Growth Requirements JDA Capabilities Benefits Network Design Sourcing Capacity SKU Classification Multi-Echelon Inventory Scenario Management Incorporates strategic policies or network changes, including: - New market or store opening - Adding or consolidating distribution centers - Changing transportation modes - Moving production lines from one plant to another - Adding new network plant - Moving production overseas Optimizes new network strategy and compares to baseline costs and margins Displays supply chain network on graphical geographic map with interactive lane viewing/analysis Incorporates changes to demand plans, resource capacities, inventory policies, and production, carrying and transportation costs in monthly or quarterly periods Reveals optimized network plans on plan analysis: service performance, inventory levels, make vs. buy, product flow, resource utilization, over/ under-utilization, penalty costs Provides optimized sourcing decision vs. manual adjustments based on general rules or shipment history Evaluates make vs. buy vs. overtime based on costs, including premium or penalty charges Determines optimal capacity ramp-up/ramp-down periods and seasonal pre-build vs. overtime vs. outsourcing Optimizes labor or production shift Classifies SKUs based on non-traditional ABC classification Selects and classifies based on any combination of the following criteria: forecast, revenue, margin, cost, forecast variability, historical trend Provides workflow in setting inventory policies and constraints based on SKU classification Determines optimal service level vs. working capital Constrains service performance and inventory targets against the fiscal budget Simultaneously optimizes inventory and economic ordering quantities (EOQ) Optimizes around minimizing costs or maximizing margin Provides intuitive inventory policy workbench and what-if scenario planning capabilities Enables time-phased inventory planning and optimization Features shared data model with JDA Demand, Fulfillment and Master Planning Publishes optimized inventory targets to JDA Fulfillment and Master Planning for daily planning policies Performs what-if analysis based on existing baseline or other scenario Supports contingency planning and 3-5 year forward-looking strategic growth/expansion planning Enables stakeholder consensus before changing network strategy Increases return on equity with 10-20% reduction in non-effective fixed assets Enables stakeholder consensus before changing network strategy Increases return on equity with 10-20% reduction in non-effective fixed assets Enables stakeholder consensus before changing network strategy Reduces logistics costs 15-20% Optimizes capacity policy decisions instead of relying on limited/rushed approximations Reduces inventory costs 10-20% through improved pre-build decisions Decreases production costs 20-30% through improved resource decisions and reduced premium charges Improves flexibility and accuracy for inventory management vs. accounting purposes Increases ability to consistently achieve 96-99% service level across all products while reducing inventory investment 15-20% Improves accuracy/performance of daily replenishment and inventory planning Enables strategic, informed executive decisions

6 Network & Inventory We realized the need to implement strategic solutions for Swire to maintain its industry position and to have one synchronized view of demand integrated into all of Swire s manufacturing, bottling, planning and execution activities. JDA s understanding of Swire s business, combined with its expertise and realistic can do approach, have effectively contributed to the successful implementation and real results achieved. Maggie Huang, APS Center Manager, Supply Chain, Swire Beverages About JDA Software Group, Inc. JDA Software Group, Inc. (NASDAQ: JDAS) is the world s leading supply chain solutions provider, helping companies optimize operations and improve profitability. JDA drives business efficiency for its global customer base of more than 5,800 retailers, manufacturers, wholesaler-distributors and services industries companies through deep domain expertise and innovative solutions. JDA s combination of unmatched services, together with its integrated yet modular solutions for merchandising, supply chain planning and execution and revenue management, leverage the strong heritage and knowledge capital of market leaders including Manugistics, E3, Intactix and Arthur. When supply chain results matter, companies turn to JDA. Now you can be among the JDA Network & Inventory customers reporting outstanding results and an unsurpassed customer experience with the following components: Inventory Policy Strategy WEB info@jda.com AMERICAS US Canada & Latin America EUROPE UK & Northern Europe +44 (0) France & Southern Europe +33 (0) ASIA PACIFIC Singapore Australia Japan India China Copyright 2009, 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