JDA Software Provides Five Strategies To Grow Your Business In A Dynamic Market

Tips to Help Companies Extend the Value of Their ERP Investment and Deliver Positive Results in Any Economy

CEOs of major companies are facing similar pressures in 2010: find new ways to deliver positive revenue increases while establishing a strategic market position and improving operating efficiencies. A growing number of forward-thinking senior executives are recognizing the limitations of their infrastructure and taking decisive action in order to grow their businesses. These executives are investing in specialized software and technology that enables them to better anticipate, plan and deliver on customer demand at lower costs and with increased speed to value. And, unlike ERP projects that have historically taken three to five years to complete and have failed to deliver on the ROI, these projects are typically completed within an 18-month timeframe and have proven track records of delivering significant and tangible benefits.

“With corporate strategies focused on innovations, mergers, acquisitions and other expansion opportunities, senior business executives must determine whether their existing infrastructure deters or accelerates their ability to achieve corporate objectives and agilely operate in today’s economic environment,” said Danny Halim, vice president of industry strategies, JDA Software.

Below, JDA Software Group, Inc. (NASDAQ), The Supply Chain Company®, provides five strategies for companies to grow market share, extend the value of their company’s capital investments and increase bottom-line results in any economy:

• Increase cash flow by freeing up working capital from a sea of trapped inventory. Whether your company wants to invest in product innovations, expand into new markets or pursue acquisitions, cash is essential. You can strengthen your company’s cash position and establish a healthy framework for growth by freeing up unnecessary inventory and keeping your stock position lean.

One company that put this strategy into action is H.J. Heinz Company. By leveraging the data available in its existing ERP system as input to a network-wide inventory optimization solution, Heinz freed up $7.5 million in inventory and achieved a 9 percent decrease in safety stock in just the first phase of the solution rollout within a single category of its diversified portfolio of products. The company continues to monitor its working capital performance and make strategic adjustments to support sales and growth strategies.

• Drive sales and expand market share by gaining a quick and accurate understanding of true consumer demand. Developing a sound demand plan based on relevant market drivers that influence consumer buying behaviors is fundamental. Not only is it important to understand how much of a product is needed, but also the “why” behind it so that your decision makers can understand the true trend or seasonality of any product.

Wanting to take on more customers and their specific packaging requests, Coca-Cola Bottling Company Consolidated (CCBCC) recognized that it first had to gain visibility into the market demand beyond the shipment forecasts from its distribution centers. After integrating supply chain planning and optimization solutions with its ERP system, CCBCC better manages product launches, promotional demand, inventory and logistics. Additionally, the bottler realized a 300 percent increase in volume of new product offering, a 50 percent reduction in inventory levels and a 15 percent increase in customer service levels.

• Respond quicker to market changes by developing an integrated supply chain plan that connects demand, distribution, production, raw material and logistics plans driven from a single view of demand. Although the pressure to reduce supply chain expenses is relentless, companies understand that cost reductions cannot come at the expense of quality, innovation and customer service. To strike a balance, companies should synchronize supply chain practices, from collaborating with customers to planning raw material requirements. With improved end-to-end integration and visibility, companies can reduce lead time and supply chain variability, as well as respond faster to shifts in market conditions, inventory production planning and scheduling.

Due to housing market changes, Black & Decker Hardware and Home Improvement (BDHHI) needed to reposition its businesses to quickly respond to shifts in volume and product mix, as well as increases in demand volatility. By investing in demand, fulfillment and master planning software applications, BDHHI gained visibility into its supply chain to support network optimization. The company realized significant gains, including a reduction in finished goods inventory by 11.4 percent. Delivering high service levels and improved fill rates to big-box retailers, field sales and wholesale customers, BDHHI also decreased planning cycle time from one week to two days and in some cases four to six hours.

• Create market differentiation by tailoring assortments and shelf plans to local consumer preferences. Companies can create a strategic advantage by realigning their product offerings with spend-conscious, consumer preferences. By weeding out poor-performing products and setting pricing strategies for high growth and new products, manufacturers can drive profitability. Retailers also need to ensure premium floor space is allocated to the ideal mix. If shoppers can’t easily and quickly find what they want, all the companies in the supply chain risk lost sales and dissatisfied customers.

Dr Pepper Snapple Group (DPS) capitalizes on its relevant data to respond more frequently and accurately to changes in consumer buying behavior. A long-time user of advanced category management solutions, DPS invested in a solution to help its category management team more efficiently create a large number of store-specific planograms that are tailored to the unique preferences of its consumers. In addition to delivering a superior level of service to its retail customers, the company can now reallocate existing resources to more profitably manage categories, expand business opportunities and grow sales.

• Achieve strategic and financial objectives by aligning business plans with operational plans. Finding new ways to increase revenue and enhance strategic market position requires leaders to think strategically about the business over a longer planning horizon. While sales and operations planning (S&OP) processes have helped to address supply-demand balancing issues, companies are now realizing the value of a new approach to S&OP: integrated business planning. This approach enables executives to ensure that all operational investment decisions are aligned with strategic business objectives to more accurately set expectations for sales, marketing, promotion, inventory and capital expenditure plans.

Doosan Electro-Materials, a leader in the manufacturing of high-quality copper clad laminate and flexible copper clad laminate, has realized significant benefits by adopting an integrated business planning approach along with the technology to support its processes. After deploying solutions that tightly integrate planning and execution, Doosan’s global inventory dropped from 2.3 million to 1.4 million products. This corresponds to a 40 percent inventory reduction in comparison to the previous year. The company also decreased its raw material inventory by 58 percent, equating to a savings of $20 million.

By adopting these strategies, business leaders can help their companies quickly achieve revenue growth and strategic market position. With profitability and cash flow under extreme scrutiny, these strategies are proven to deliver bottom-line value, regardless of economic conditions.
JDA’s industry-leading, supply chain planning and optimization solutions can help your company respond in real time, leverage more refined planning and optimization techniques, as well as ensure that your supply chain execution is responsive to all of the dynamic changes that may come your way this year and beyond. To learn more about JDA Software, please visit www.jda.com, e-mail [email protected] or follow JDASoftware on Twitter.

About JDA Software Group, Inc.

JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, is a leading 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.

SOURCE: JDA Software Group, Inc.