2 0 FOCUS 2012 Highlights Richard Hsiao

FOCUS 2012 Highlights

Richard Hsiao, Regional Services Director

Greater China Region

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL

JDA Vision & Strategy

Thought Leadership: Differentiated Supply Chain

Customer Presentation: SanDisk

Real Result Winner Highlights


• Change the paradigm

– JDA Cloud Strategy

– Integrated Service Delivery

JDA Paradigm Shift

JDA Cloud Strategy


Major Strategic Decisions

1985Create a Retail

Software Business

1996AcquisitionStrategy

2000SupplyChain

2012JDA

Cloud


JDA Cloud StrategyPreparation

2009 we launched JDA Managed Services

• Focus on run/maintain service

• Developed our platform, processes, organization

• Integrated i2 managed services customers

Today

• Approximately 100 customers

• Over 1m users in over 200 countries

99.99% uptime


JDA Cloud StrategyTransformation

STATEMENT OF DIRECTIONJDA is going to transform its business to a cloud-based business over the next three to five years.

JDA customers will benefit from:

� Faster time to value

� Lower cost of implementation

� Higher quality service

� Lower cost of support

� Increased agility

� Superior results

Integrated Service Delivery


• Integrated

– Consulting

– Education

– Cloud services

– Support

• Regional leaders responsible for all services

• Global standards, processes, knowledge, tools

JDA Integrated Service Delivery

We are re-organizing our business to support our paradigm shift to cloud


Benefits– Simpler, single point of service for JDA customers

– Increased efficiency and agility to serve you better

– Less work for you, we manage your evolving needs

– We will apply same processeswith our certified partners

JDA Integrated Service Delivery

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL 1212

Telecom Industry

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01

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PC-Powerful CPU, Large Disk

CD-R/RW

DVD-R/RW

Consumer Electronics-

Digital Camcorder,

Digital TV,

HDTV, DVR

Mobile Device-

Wireless Phone,

Handheld Devices

Digital Convergence

Emergence of distinct segments: simple to very complex device: Digital convergence is driving the disruption and redefining new market segments


It poses Supply Chain Challenges

Deliver Customer Centricity: Differential Value

Deliver Supply Chain Agility: Differential Speed

Deliver Innovation: Time to market

Deliver Supply Chain Resilience (against major disruptions): Contingency Planning: Differential Recovery

Environmental Sustainability and Regulatory Pressure Supply

Chain

Diff

ere

ntiation

How to


Makes complex, configurable products sold through a dealer channel

DealersAssemblyT1T2Engineering

Push Pull

Push Pull

PullPush

Pull

Customer Value Proposition(LT=lead time; P=price;

O=options)

StrategiesStrategies

MTS, 3-4 pre-

configured packages

MTO, 20 pre-

configured packages

with limited changes

MTO, ala-carte

configuration

ETO, ala-carte

configuration with

engineering changes

LT: 2 weeks

P: $

O:

LT: 10 weeks

P: $$

O:

LT: 16 weeks

P: $$$

O:

LT: As quoted

P: $$$$

O:

Industrial CustomerDifferentiated Supply Chain


Key directionOne Physical Supply Chain with Multiple Virtual Supply Chains tied to different ways of servicing the Customer

Demand Classification / Differentiated promising policies

Differentiated inventory policies

Differentiated fulfillment policies

Differentiated manufacturing modes

Differentiated sourcing policies

Execution orchestration

(S&OP)

Strategy (policy) orchestration

If we can match the need of a differentiated customer in supply chain to a

given product at a given time, tremendous value can be realized

If we can match the need of a differentiated customer in supply chain to a

given product at a given time, tremendous value can be realized

Distributor DCsDealer DCs

Store

Consumer

Manufacturer DCsPlants SuppliersContractSuppliers

JDA Point of View


Consistent Policies across the Integrated Manufacturing Suite

Demand Planning

ForecastNetting

InventoryPlanning

Supply Chain Supply Chain Master Planning

S&OP

Fulfillment &

Safety Stock

Policies

Forecasts

OrderCreation(ERP)

OrderPromising

AllocatedATP

Available-

To-Promise

Committed Orders

Netted

ForecastsQueries &

TransactionsPromises

Queries &

Transactions

Demand Review Supply Review

• Demand Planning

Configuration

• Service Levels

• Offered Lead Times

• Reorder Policies

• Profiling Policies

• Netting Policies

• Demand Prioritization

• Safety Stock Ranks/Bands

• Allocation Policies

• Promising Policies

• Customer Segmentation

• Product Segmentation

Supply Commit to

Forecast and Orders

Unconstrained

Forecasts


• SanDisk founded in 1988 by Dr. Eli Harari, Sanjay Mehrotra and Jack Yuan

• World's largest supplier of innovative flash memory data storage products

• SanDisk is headquartered in Milpitas, California

• 2011 revenue $5.6 billion

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SanDisk Overview


SanDisk Supply Chain

Scale Speed

Cost Flexible

Adaptive Supply Chain


Supply Chain Segmentation

• Not one supply chain design fits all customers/productsYear 2010

Service Level

Inventory


Sales and Operations Planning


Advanced Planning Systems

System Recommends

User Review and Overrides

System Respect

Override and Re-plan


Metrics

Real Results Winners -Manufacturing


• Akira Nitta, Section Manager, IT Innovation Leading Department

• Company Background– Fifth largest steel manufacturer in the world, providing high quality, high-performing

products globally to diversified industries.

– To increase its responsiveness to market changes, improve customer satisfaction and build a more efficient supply chain, JFE formed a partnership with JDA to drive supply chain management reform.

– Helped the company to shorten the timeline to formulate sales and operations plans while improving the planning accuracy.

– Mainly, inventory in the distribution center, as well as supply chain costs such as logistics, were significantly reduced.

• Solutions– JDA Factory Planner, JDA Sales & Operations Planning, JDA Supply Chain Planner,

JDA Agile Business Process Platform

• Real Results– Reduced timeline for sales and operations plans by 50 percent– Improved planning accuracy by 10 percent

JFE Steel Corporation

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• Arturo Navarro, Supply Chain Director

• Company Background– Largest footwear manufacturer in Mexico, producing more than 13 million pairs of

shoes annually.

– Partnered with JDA to improve its forecasting and supply chain planning capabilities.

– Generates production plans for 30 company-owned and subcontracted factories and more than 5,000 stock-keeping units each season — all while managing complicated procurement plans.

– Enhanced planning capabilities allow Flexi to allocate up to 60 percent of each

season’s peak demand to new products.

• Solutions– JDA Demand Manager, JDA Supply Chain Planner

• Real Results– Improved service levels by 30 percent

– Increased inventory turns by almost 15 percent

– Reduced supply chain planning time by 50 percent

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Grupo Flexi


• Ajit Sividasan, Vice President and General Manager, Global eCommerce

• Company Background– $21 billion personal technology company — and the second largest PC company in the world

— serving customers in more than 160 countries.

– By partnering with JDA Cloud Services, Lenovo’s Global Web team deployed a platform to support its e-commerce initiatives for its global customer base.

– By migrating its existing infrastructure to the JDA platform, Lenovo has achieved substantial infrastructure cost savings on an annual basis.

– JDA’s Web commerce capabilities have yielded additional gains on the e-commerce front, increasing revenue and profits dramatically.

• Solutions

– JDA Web Commerce, JDA Agile Business Process Platform

• Real Results– Achieved annual infrastructure cost savings of several millions

of dollars

– Increased revenue doubled over the last 5 years; share

increased 3X

– Improved profits by more than 350 percent over the last 5 years

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Lenovo

Real Results Winner - Retail


• Background– One of Canada’s most recognized and trusted brands, with annual sales of more than CA$10 billion.

– Built an innovative, pioneering and enduring relationship with JDA that has allowed it to fend off competition and establish itself as the leading retail supply chain practitioner in Canada.

– Long-term strategic collaboration with JDA helped Canadian Tire transform its demand and fulfillment capabilities, slash its inventory carrying levels and delay a substantial capital expenditure — all while continuing to grow its business.

– The company was also the first customer for what is now JDA Cloud Services. Today, Canadian Tire shares its demand forecasts with vendors, resulting in improved performance and collaboration.

• Solutions– JDA Collaborate, JDA Demand, JDA Enterprise Architecture, JDA Freight Audit & Payment, JDA Fleet

Management, JDA Freight Order Management, JDA Fulfillment, JDA Intactix Knowledge Base, JDA Inventory Policy Optimization, JDA Logistics Sourcing, JDA Market Manager, JDA Monitor, JDA Order Optimization, JDA Promotions Management & Optimization, JDA Shipment Execution, JDA Space Automation, JDA Space Planning, JDA Transportation Planning

• Real Results: – Delayed capital expenditure of CA$250 million for five years

– Dramatically reduced inventory carrying levels, which were not

achieved again until point-of-sale transactions increased by 50 percent

Canadian Tire RetailRetail, Americas

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• Background

– Provider of central wholesaling, manufacturing and administrative services to locally owned retail co-operatives across Western Canada.

– Improved speed to market on new product introductions and inventory rationalization.

– Transitioned from a mainframe environment to best-of-breed supply chain solutions, resulting in reduced spoilage, increased service levels and improved inventory turns in its perishable operations.

– Decreased annual costs and improved its forward-buy margins.

• Solutions– JDA Demand, JDA Demand Classification, JDA Fulfillment, JDA Intactix Knowledge

Base, JDA Order Optimization, JDA Space Planning, JDA Monitor

• Real Results

– Reduced spoilage by 14 percent, as well as increased service levels by 1.2 percent and inventory turns by 2.6, in its produce operations

– Achieved CA$500,000 in annual cost reductions and improved margins using JDA Intactix Knowledge Base

– Improved forward-buy margins by more than CA$2.5 million

Federated Co-operatives Limited Retail, Americas

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• Background

– Lowe’s Companies, Inc. is the second largest home improvement retailer worldwide and the ninth largest retailer in the United States.

– With an annual freight spend of more than $350 million, Lowe’s used JDA’s transportation management solution to automate and optimize its ocean carrier network at the lane level.

– The new capabilities helped Lowe’s improve efficiencies and enabled better, more collaborative relationships with ocean carriers.

– Today, all planning, optimization and booking is conducted within one system, with full visibility into vendor and carrier performance.

• Solution

– JDA Transportation

• Real Results

– Reduced international transportation spend by nearly 2 percent for millions of dollars in savings.

Lowe’s Companies Inc.Retail, Americas

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• Background

– Largest Canadian distributor and retailer of hardware, renovation and gardening products with a network of nearly 700 corporate, franchise and affiliate stores of various sizes and formats.

– Worked with JDA to enhance the customer experience and improve its demand and supply planning efficiency.

– Today, a dozen demand planners control planning of more than 40,000 stock-keeping units across RONA’s distribution centers and approximately 600 stores.

– Increased forecast accuracy and its promotional item availability.

• Solutions

– JDA Demand, JDA Enterprise Planning, JDA Fulfillment, JDA Promotions Management & Optimization

• Real Results

– Increased forecast accuracy to 75 percent by year-end

– Improved promotional item availability from 95 percent to 99 percent in 18 months

RONA inc.Retail, Americas

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• Background

– Offers a wide range of quality clothing, food, home ware, beauty and financial services products.

– Revolutionized core retail processes by integrating pre-season planning with in-season execution at each of its 400-plus stores.

– Merchandise financial planning and assortment planning are now integrated with allocation and replenishment, improving Woolworths’ margin management and increasing sales.

– With better end-to-end visibility, Woolworths has also been able to improve buy volumes and the quality of product mix delivered to its customers. Stock management across the supply chain has also improved.

• Solutions– JDA Allocation, JDA Assortment, JDA Demand Manager, JDA Merchandise Planner, JDA Replen

ishment Planner, JDA Size Scaling, JDA Master Data Management

• Real Results

– Improved margin delivery by 14 percent above target

– Increased sales by 2 percent

– Decreased supply chain inventory by 0.6 weeks

Woolworths South AfricaRetail, EMEA

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Questions?

Thank You!

2 0 FOCUS 2012 Highlights Richard Hsiao

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