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Friday, September 19, 2008

Strategic Tools essential to Drive Growth, Says JDA Software Country Manager

Soaring oil prices leading to increased commodity and service costs across the board and intense competition are forcing Philippine businesses to rapidly improve their capability for gauging customer demand and delivering products and services more cost-effectively when and where they are needed, the top Philippine executive of a global software company said.

“Companies are focusing on demand forecasting, planning and optimization of their supply chains, said JDA Software Philippines country manager Cherokee Chamorro. “Given increased competition, rising costs, and other macro-economic factors, Philippine businesses are telling us their key challenge is to predict customer demand in the most accurate and timely manner possible, then execute supply chain processes to meet demand as efficiently as possible.”

The company’s solutions provide “the ability for retailers and manufacturers to segment customers and territories based on actual buying behavior. This provides the capability to forecast demand based on basic demographic and geographic attributes, actual historical sales information, current market research data, and forward-looking market trends.” Chamorro said.
“Our solutions provide retailers and manufacturers the means to achieve their profit and merchandising objectives through optimal inventory and service levels. Our customers typically experience significant increases in market share as a result. Another benefit is lower inventory of slow-moving products by as much as 20% to 70% while increasing service levels,” Chamorro said.

According to Chamorro, JDA has demonstrated these capabilities with major clients through Asia Pacific and is now working with major Philippine companies to provide the same benefits.

Arun Grupta, CIO of HyperCITY, a member of India ’s retail giant Shopper’s Stop Group, recently explained the benefits his company experienced. "Before we implemented JDA’s Allocation & Replenishment solutions, it was an experiment for us to understand what customers would buy. For example, we closely evaluated our grocery products to determine what kind of categories would sell and which would not. We found that the JDA solutions are able to provide information that helps us plan our category mix a lot more effectively. As a result of better business decisions driven by the JDA solutions, some of the categories we offered two years back have been replaced by newer, better-selling categories," he said.

"Precise inventory planning is essential to HyperCITY's continued success. In the retail and food business, availability of the right SKU in the right quantity on the shelf is imperative. When the ordering is based on guesswork rather than statistics, the result is excess inventory or empty shelves. This inventory holding cost can adversely impact profitability. Additional stock also means that available space to hold the stock is at a premium." Arun said.

JDA solutions are used by more than 5,550 retailers and manufacturers of all sizes internationally, according to Chamorro. Eight of the Philippines top 10 retailers use JDA’s Merchandise Management System to integrate point-of-sale and enterprise financial systems.


About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results – fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably.

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