JDA Merchandise Management System (MMS): Retail Execution & Optimization Review

MER012 JDA Merchandise Management System (MMS): Retail Execution & Optimization Review Allan Fawcett 1

Core Merchandise Overview Lay out the problem How JDA differs Our Solution specifically Merchandise Foundation Performance Analysis 2

Ever had days like this? Where a mountain of data... 3

Ever had days like this? Just seems to grow and grow... 4

Ever had days like this? And you wind up like this? 5

You re not alone 39.7% of executives feel that data volumes are becoming unmanageable* But NOT executives relying on JDA systems We make retail-scale data volumes not only manageable but also VALUABLE Our merchandising clients process over 1 Trillion transactions per year - - and use them to drive decisions & results with confidence * Source: Deloitte Financial Advisory Services LLP 6

Core Merchandise Overview Lay out the problem How JDA differs Our Solution specifically Merchandise Foundation Performance Analysis 7

Transformation Better Results Decision Business Data 8

What will JDA do for you? Make you more profitable by: Giving you data you can trust and use to competitive advantage Giving you tools that focus on what needs to be done 9

JDA Modular Optimization Integrated Planning & Execution Merchandising Supply Chain Store Operations Merchandise Planning Vendor Collaboration Workforce Management Store & Size Optimization Buying & Assortment Management Visual Merchandising Allocation & Replenishment Network & Inventory Optimization Transportation Management POS & Inventory Management Customer Management Price & Promotion Management Demand Management Collaborative Information Visibility, Analysis and Monitoring Retail Foundation Management 10

Core Merchandise Overview Lay out the problem How JDA differs Our Solution specifically Merchandise Foundation Performance Analysis 11

JDA Modular Optimization Integrated Planning & Execution Merchandising Supply Chain Store Operations Merchandise Planning Vendor Collaboration Workforce Management Store & Size Optimization Buying & Assortment Management Visual Merchandising Allocation & Replenishment Network & Inventory Optimization Transportation Management POS & Inventory Management Payment Systems Price & Promotion Management Demand Management Collaborative Information Visibility, Analysis and Monitoring RETAIL FOUNDATION MANAGEMENT 12

Data Foundation Organization Calendar Master Data Foundation Re-classification Attributes Hierarchies/ Alt Hierarchies Enterprise Wide Support Advanced Logging Products Multi-Lingual EDI Inventory Order Mgmt Fulfillment Price / Promo Financials RETAIL FOUNDATION MANAGEMENT 13

Inventory Management Physical/Cycle Counts Transfer Management Price/Cost Adjustments Inventory Control Transaction Audit Adjustments Interface to G/L Multi-Currency Order Management Return to Vendor Inventory Stock Ledger Sales Processing Inventory Analysis Inventory Order Mgmt Fulfillment Price / Promo Financials RETAIL FOUNDATION MANAGEMENT 14

Order Management Cost Management Allowances Landed Costs Order Management Inquiries Reports Status Tracking Audit Purchase Order Entry/Allocation Auto Replenishment Store Orders/Requests Rebates EDI/DSD Inventory Order Mgmt Fulfillment Price / Promo Financials RETAIL FOUNDATION MANAGEMENT 15

Customer Order Management Multi-Channel Customer Order Management Customer Pricing Customer Information Customer Order Processing -Web - Wholesale -Catalog -Mail Order Accounts Receivable Customer Communications Catalog Customer Relationship Mgt Order Fulfillment Inventory Order Mgmt Fulfillment Price / Promo Financials RETAIL FOUNDATION MANAGEMENT 16

Warehouse Management Put Away Auto Item Movement Generated Picks RTV/TRF/CO Picking/ Letdown ASN / Receiving Cross Dock/ Flow-Thru Shipping/Carton Manifesting Data Management/SDI Inventory Control Inventory Order Mgmt Fulfillment Price / Promo Financials RETAIL FOUNDATION MANAGEMENT 17

Price Management Regular Pricing Organization Level Markdowns Price History Audit Price Books Multi-Currency Hierarchy Level Promotional C/S/D Pricing Customer EDI Inventory Order Mgmt Fulfillment Price/Promo / Promo Financials RETAIL FOUNDATION MANAGEMENT 18

Financial Management Accounts Payable Accounts Receivable Invoice Matching GL Budgets General Ledger Sales Audit Retail Stock Ledger Reporting Consignment & Commissions Merchandising Inventory to GL Inventory Order Mgmt Fulfillment Price / Promo Financials RETAIL FOUNDATION MANAGEMENT 19

Business Analysis Merchandise Performance Analysis Data Categories User Lists Pre-defined Views Pre- Summarized, integrated data Traffic Lights & Filters View Groups Action Support Inventory Order Mgmt Fulfillment Price / Promo Financials RETAIL FOUNDATION MANAGEMENT 20

Merchandise Management Merchandising Financials Automated Replenishment Transfer, Receiving & Allocation Price & Promotion Management Data Mgt Inventory Control Purchase Order Management Return to Vendor Inventory Stock Ledger Products Accounts Payable Invoice Matching Budget General Ledger Accounts Receivable Sales Audit Retail Stock Ledger Cost Management EDI Analysis Locations Vendors Reporting Consignment & Commissions Warehouse Management Calendar Multi-Channel ASN / Receiving Cross - Dock Put Away Auto Item Movement Data Management Inventory Control Physical Inventory Picking/ Letdowns Shipping RF Order Fulfillment Store Ops Customer Order Management Derivative Pricing Customer Information Customer Relationship Mgt Customer Order Processing Accounts Receivable Customer Communications Catalog Order Fulfillment Business Analysis 21

Future Impacts Merchandising Demand Forecasting Store Ops Forecast Sales Forecast Promo Sales Enterprise Version of Demand Point of Sale Back of Store Workforce Management Customer Relationship Management Optimized Plans Strategic Plans Merchandise Plans Assortment Space & Floor Plan Size & Store Optimization Price Optimization Price Optimization Promo Optimization Markdown Optimization Advertising & Promotions Management Inventory Optimization Replenishment Allocation Transportation Size & Store Optimization 22

Over 400 Retailers World Wide 23

Brooks Brothers Implementing JDA s Merchandise Management System to support Brooks Brothers was the next logical step in achieving our vision for One Tool, One Way, One Solution throughout our enterprise. The advanced capabilities of JDA s integrated solution provides us with soft-lines functionality and the scalability to rapidly assimilate new divisions, thousands of stores and SKUs along with volumes of customer information, all without redundancy. - Stefano Gaggion, VP of MIS, Retail Brand Alliance Brooks Brothers Benefits Reduced front of store inventory 30% Sales up 27% 24

Base Data Maintenance 25

Stock Ledger Inquiry 26

Inventory Transaction Audit Inquiry 27

Buyers Workflow 28

Buyers Workflow 29

Buyers Workflow 30

Buyers Workflow 31

MMS Value Increase Sales Inventory Allocation Chain, Zone, Store Pricing Increase Margin Inventory Allocation Reduced Markdowns Color/Size/Dimension Pricing Chain, Zone, Store Pricing Cost Management (Allowances, Landed Cost, Vendor Rebates) Increase efficiencies Data Foundation Real Time Inventory Updates Invoice Matching Low risk/cost to install Fully Integrated Over 400 Installation Worldwide 32

Merchandise Performance Analysis 33

Analysis Challenges Too much time gathering data No ability to flexibly view information Cannot isolate exceptions Difficult to take action on analysis 34

Implications Labor costs Paper based analysis No Exception Base Reporting Analysis action 35

Solution Recommendation Hundreds of pre-defined views with retail key performance indicators 36

Ad-hoc Analytics Design Your Own Custom Reports Add Columns: On-Order Qty Add Filters: By Order Qty 37

Exceptions & Alerts Working in the Red Zone Focus on your Sphere of Influence Parameter Based Exception Environment Management Control over Alerts & Warnings 38

Closed-Loop Processing Actionable Intelligence Product Transfers Markdown Strategy Promotional Strategy 39

Connected Application After analyzing information, save the view as a Web page and e-mail it to vendors, stores or internal resources with your instructions. 40

Demonstration introduction Sales Analysis Action Support 41

42 42

Drill down on graph 43 43

Shows Drill Down Path 44 44

You can specify data elements instead of drilling down 45 45

Different filters and sorts can be done. Adding columns with system data or user defined calculations. 46 46

47 47

48 48

49 49

50 50

51 51

52 52

Selected User List 53 53

Action Support creates price change back to MMS 54 54

Performance Analysis - Benefits Pre-Built Views Data categories Integrated action support Exception based reporting Publication of reports to stakeholders Enhance visibility across the enterprise One single version of the truth 55

Conclusion With over 400 installed clients, MMS is the world s number one retail host system for the IBM iseries. Providing a complete solution, featuring fully integrated merchandising, analysis, multi-channel order processing, warehouse management and financial applications to support your operations. Hardware, Services, and Support complete the total solution! 56

Questions? 57

Thank you. Please remember to submit your survey. MER012 58