jda 2015 v3

Celtic Manor March 2015

High Performance Supply Chains Simon Bowes Andrew Killick

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Key Findings

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Key Findings

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Key Findings

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Key Findings

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TOTAL REVENUE

$ in millions

CUSTOMERS

4000+

Introductions

PROFESSIONALS

4800+

LOCATIONS WORLDWIDE

70+

$382 $401

$594

$691

$1,065

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JDA – End to End

No disruptions · No silos No surprises No secrets

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Customers

Copyright © 2014 JDA Software Group, Inc. Confidential

CONTINUED INNOVATION AND CUSTOMER FOCUS

Voice of the CUSTOMER

$120+ Million in R&D Spend 400 Patents


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Supply Chain Planning Ecosystem

“Apply the Gartner Supply Chain Maturity Model for Better Supply Planning”, Gartner, April 2014

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Flexible Business Model

Transportation Management

Warehouse Management

Replenishment & Fulfillment

Price & Promotions Management

Order Promising & IBM Commerce

3rd Party Solutions Host/ERP/Other

JDA Platform

Sales & Operations Planning

Demand Management


Real Time Integration

In Memory Processing

Cloud Computing SaaS

JDA

Customer-Centric


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Independent and Misaligned Goals

Retailers and Manufacturers Both Struggle with Problems…Independently

Disconnected Models & Systems Create Uncertainty, Accountability Issues and Unnecessary Costs

Supplier-Centric Planning

Retailer-Centric Planning

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Benefits

Pre-built store level metrics

Algorithms that determine root-cause

Auto-cleansing demand history

Tied to supply chain levers

Opportunity

Benefits

Opportunity

One view of key metrics

Enable joint planning with retailer partners

Drill up/ down

Optimized for scale and performance

Benefits

Prescriptive simulation modeling across 5 categories (Promotions, Inventory, fulfillment, deployment, and network strategy).

View tradeoff decisions across multiple simulations

Benefits

Dashboard monitoring of new product introduction performance by store

Drill up/down hierarchy analysis

Daily visibility of performance vs. target

Collaboration Workbench

Root Cause Analytics Simulation Modeling

New Product Intelligence

JDA Flowcasting

Leverage Cloud Computing

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Flowcasting and Forecast Accuracy

> “Drake said the solution, now live with a couple of retail customers, has delivered the biggest single improvement in forecast accuracy in the history of Kraft, while noting that in a sense Flowcasting has upended Kraft’s existing thinking about the value of traditional forecasting and accompanying resources”

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Dan Gilmore, Supply Chain Digest , May 11 , 2012

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In Memory Computing

> What difference would it make if you could get a response to a Master Planning question in a matter of minutes or seconds?

> A response that was - Global - Optimised - Costed - Revenue and Margin Aware - Customer focused

> Utilising In-Memory Computing technology makes that possible.


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Plan Management Planning Control Tower

> Agile Workbench enables fast response to events via guided resolution paths powered by a live in-memory simulation engine

- Respond to disruptive events quickly and

profitably

- Triage and resolve exceptions via pre-packaged resolution levers

- Perform rapid what if simulations to try out various scenarios

- Update the plan of record in incremental fashion

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The Shift in Production Planning

> Weekly production plan

> Load leveling based on the primary

bottleneck constraints

> Manual plan tuning was expected as part of

the planning process

> Material availability was primarily MRP and

procurement issue

In the past . . . Today . . .

> Increased demand volatility requires daily

production planning

> Floating bottlenecks (due to high demand

mix)

> Production planners don’t have time to

respond to volatility

> Must consider material availability due to

volatile material costs and increased lead

times

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Order Promising Maturity

Maturity

Agili

ty

Level 1

Fixed Lead Times

Level 2

Simple Available-To-

Promise (ATP)

Level 3

Real-Time, Allocated

ATP

Level 4

Real-Time, Allocated

Capable-To-Promise

Level 5

Closed-Loop

Profitable Promising

Lead times are theoretical or averages

based on past performance

Does not adapt to

changing supply and demand

Does not incorporate

supply chain or customer priorities

Simple finished good supply including on-

hand, in-transit, planned and projected

receipts

No reservations for key channels, customers or

tiers

Simple logic to match demand to supply

Differentiated allocation policies for channel and product

segments

Segmentation strategies regularly tuned to business

conditions

Automatic supply-demand balancing

Lights-out promising

with workflows to manage exceptions

Reservations at multiple levels in the

supply chain by channel and product line

On-going proactive

management of response to forecast

Advanced root cause

analysis and exception resolution

Price-point and profit-sensitive reservations

at multiple supply chain levels

Interactive planning adjustments and re-

allocations

Closed-loop feedback on order execution

Tune promising policies

to adapt to changing buying patterns

“Apply the Gartner Supply Chain Maturity Model for Better Supply Planning”, Gartner, April 2014

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Connecting Planning to Execution

Demand Planning

Supply Chain Strategy

Inventory Optimization

Sales & Operations Planning

Replenishment

Master Planning

Factory Planning, Scheduling

Order Promising

Hours Shifts Days Weeks Months Quarters Years Real-Time

Long-Range Demand Planning

Medium-Range Consensus Demand Plan

Strategic Network Design

Portfolio Segmentation

Tactical Inventory Planning

Strategic Inventory Planning

Executive S&OP Operational S&OP

Distribution Requirements Planning

Deployment Planning

Master Production Planning

Factory Planning & Scheduling

Allocation Planning Order Promising

2. Build to support the plan

1. Plan what you want to sell

3. Promise what you can build

ER

P /

WM

S / T

MS

/ M

ES

4. Deliver on promises

and achieve the plan

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Real-time Integration with SAP

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Take aways

> Some things never change – but some do > Technology is an enabler > Maturity matters – it’s a journey > Innovation

> JDA.com > [email protected] > [email protected]


mailto:[email protected]

jda 2015 v3

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