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

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Achieve the next

level of innovation

with JDA solutions to

maximize the value

of your ERP systems.

Extending Your

ERP Systems

Leverage Your ERP Investment

With JDA’s Planning, Optimization

and Execution Solutions

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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 10-15 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 50-60 percent and in-stock positions of 95-97 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

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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.

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.

“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,

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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!

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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

Sample of JDA’s ERP Retail Customers

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.

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JDA Delivers Comprehensive, Best-of-Breed Capabilities to Extend Your ERP Investment

Requirements JDA Capabilities Benefits

Allocation & Replenishment

• Features advanced consumption logic that senses and responds to real-time demand signals

• Develops multi-tier, time-phased orders, shipments and receipts

• 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

• Reduces stock-outs

• Improves inventory turns and sell-through • Confirms available inventory across the

supply chain

Assortment

Management • 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

• 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

Collaboration • 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

• 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

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

• Reduces inventory levels

• Increases planner throughput and customer service by significantly reducing manual efforts • Minimizes obsolete items

Multi-echelon Inventory Policy Optimization

• 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 customer service and order fill rates • Frees working capital tied to ineffective

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Demand Decomposition

• 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

• Automates the management of location-level seasonality in a product’s demand levels throughout a selling season or fiscal year

• Improves forecasting accuracy • Optimizes inventory levels • Supports better consumer insight

Network Design

& Optimization

• 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

• Reduces operating costs in logistics, procurement and production • Improves total network utilization

Pricing & Promotion Optimization

• 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

• Increases revenue lift and profits • Improves promotional spend accuracy • Increases effectiveness

Space & Category Management

• 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

• Increases market share, sales and margins • Reduces out-of-stocks and markdowns • Decreases carrying costs of excess inventory • Introduces new products and categories faster

Transportation & Logistics Management

• Supports a 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 the management and shipment visibility during transport and post-movement with payment and performance analysis

• Increases profits • Reduces costs • Streamlines processes

• Enhances partner collaboration and communication