INTELLIGENT FULFILLMENT ™

Replenishment & Fulfillment JDA Software: Orchestrating Optimum Inventory Levels Across the Supply Chain With Time-Phased Planning and Enterprise Visibility

Companies are striving for process integration and flawless execution to minimize stock-outs, excessive costs and poor service.

Why do companies worldwide rely on JDA Software to deliver allocation and replenishment value? Real Results. Fast. JDA Software helps the world’s leading retailers, manufacturers and wholesaler-distributors achieve tangible benefits through optimized allocation and replenishment. Here are some of the real results that our customers have achieved with JDA’s Replenishment & Fulfillment solution suite*: Supply chain and demand visibility

Higher sales and promotion volumes

• Improved demand forecast accuracy by 15-25 percent, with some JDA customers reporting a 97.8 percent average or better

• Supported increases in gross margins at a rate of 0.5-1 percent

• Improved customer fill rates by 20-30 percent

• Added 2-8 percent incremental annual revenue without additional resources

• Improved supplier partnerships, with some JDA customers reporting a 4.5 percent increase in orders delivered on or before the purchase order due date

• Reduced stock-outs by 15-50 percent at stores

• Reduced number of weekly deliveries within certain product areas

• Increased comp-store sales, with one JDA customer realizing a 23.8 percent improvement over the year prior

• Decreased transportation costs by 15-30 percent Inventory investment optimization • Improved determination of inventory requirements, resulting in reduced inventory levels by as much as 25 percent in stores and 40 percent in distribution centers • Improved service levels by 10-20 percent, with some JDA customers maintaining as high as 99 percent and above in-stock levels • Realized a 30-60 percent reduction in overstock by minimizing unnecessary orders

• Improved inventory turns by 30-60 percent • Reduced promotional spending by 5-15 percent

• Addressed shrinkage issues, with one JDA customer eliminating 50 percent weekly shrink Planner productivity and efficiency • Improved efficiency and productivity • Increased time available for high-value activities • Supported faster, more informed decision making * Represents actual results realized by JDA customers.

Challenge: Limited Supply Chain Visibility and Non-Integrated Processes Causing Stock-Outs, Excessive Costs and Poor Service Retailers and wholesaler-distributors are constantly pressured to reduce their inventory investments while keeping their shelves and distribution centers (DCs) stocked with the right merchandise. Manufacturers are pressured to produce and precisely position the right amount of inventory across different network nodes to ensure 24-hour, on-demand availability. The complexities in managing these processes can result in costly ramifications: out-of-stocks, lost sales, decreased loyalty and wasted capital. Companies wanting to tackle these challenges have typically selected between two approaches: a distribution requirements planning solution or a replenishment execution solution that focuses on the next order. While each approach addresses some of the requirements, neither solution is capable of optimally addressing them all. To stay competitive in today’s dynamic global environment, companies need the best of both approaches — an advanced, integrated solution that addresses factors ranging from demand signals and customer service targets to safety-stock policies, lead times and transportation constraints.

Solution: Process Integration and Superior Execution With Proven Replenishment and Fulfillment Now companies can take their supply chains to the next level with JDA’s market-leading Replenishment & Fulfillment solution suite. Our solutions incorporate world-class distribution requirements planning with optimized replenishment execution for near-term order release and load building. You’ll position just the right inventory in just the right locations to drive sales, contain costs and optimize service levels. Based on proven best practices, JDA’s solutions have steered products profitably through the supply chain for more than 25 years. By integrating and synchronizing your manufacturing planning, distribution planning, order optimization and allocation processes, JDA Replenishment & Fulfillment supports superior execution. You’ll improve stock availability on the lowest possible inventory investment across your network.

Companies around the world have realized a fast return on investment with our specialized Replenishment & Fulfillment functionality: • Optimal inventory planning, order execution and management • Allocation of constrained supply • Dynamic deployment for inventory rebalancing • Project transition management • Purchase order optimization • Time-phased replenishment planning • Date-sensitive inventory management • Economic buying against purchase incentives Together these capabilities reduce cost, increase sales, improve margins and raise customer satisfaction to give your company a competitive edge.

“The JDA solutions help us make more strategic decisions. For example, we might only prepack 70 percent of our merchandise for the stores. If the forecast is wrong, JDA Fulfillment enables us to send the other 30 percent to the places it’s been selling best.” Iain Little Demand and Fulfillment Strategy Manager, Mark’s Work Wearhouse

End-to-End Capabilities to Optimize Your Inventory Investment, Drive Sales and Contain Costs TIME-PHASED REPLENISHMENT PLANNING & ORDER EXECUTION

Gain Complete Supply Chain Visibility for One Synchronized View of Demand From product ordering, warehousing and allocating to selling, moving and replenishing, all products turn on their own schedule, driven heavily by demand. By leveraging forecast and end-consumer demand signals, JDA’s Replenishment & Fulfillment capabilities provide a synchronized view of demand and supply. Create optimized, multi-level replenishment plans down to the store level with our advanced senseand-respond algorithms to adapt to daily changes in demand signals. You will avoid costly stock-outs and overstocks as well as improve inventory turns and product sell-through across your stores, distribution centers, trans-loads and plants.

Manage Your Global Sourcing Programs Successful companies must provide 24-hour availability across global time zones, sourcing and distribution points, contract manufacturers and co-packing partners. JDA Replenishment & Fulfillment addresses this key requirement for single-tiered or multi-tiered distribution networks. Since it recognizes network interdependencies on customer service and inventory investment targets, you can create feasible plans and orders to meet your objectives. JDA Replenishment & Fulfillment tackles all of the challenges associated with creating optimal purchasing, developing inventory safety-stock strategies and defining inventory flow plans — enabling you to efficiently manage priorities across multi-echelon manufacturing, distribution and supplier networks.

Optimize Your Short-Term Demand Picture JDA Replenishment & Fulfillment uniquely analyzes open orders, recognizes the order pattern and drives future forecast allocations based on these patterns. Our advanced capabilities can recognize and flag promotional orders and then consume, adjust and prorate the forecast at the customer level by demand type. By driving a more accurate daily demand signal, JDA Replenishment & Fulfillment improves overall forecast accuracy. You will benefit from lower inventory levels and fewer expedited shipments for increased customer satisfaction while avoiding costly stock-outs and overstocks from promotions that occur earlier or later than anticipated.

Fulfill Localized Demand With Sophisticated Allocation and Distribution Flow Transforming key consumer insights into the right mix of products for each location is essential. JDA Replenishment & Fulfillment enhances and translates customer knowledge into targeted allocations. You’ll optimize location-specific assortments across your entire network through fast-flow distribution to meet demand while minimizing inventory holding costs. Featuring extended techniques such as lower-level need and minimum/maximum capabilities, JDA Replenishment & Fulfillment handles all of the details. You’ll lower overstocks since our solution considers network inventory prior to creating orders. It even minimizes the impact of demand shifts by postponing allocation decisions that become critical for companies deploying global sourcing programs. With JDA Replenishment & Fulfillment, you can simulate your global, multi-tier allocation strategies and then execute the ideal product mix for each location.

JDA Capabilities • Develops product shipment, optimized order and inventory plans within multi-tier network • Considers demand forecasts, committed orders, safety stock, coverage and allocation strategies, manufacturing constraints and stock availability • Generates orders and replenishment plans that respect network, vendor and transportation constraints • Manages product transitions, auto-order approvals, economic tradeoff ordering, integrated promotion ordering and alternate source replenishment • Supports multiple fast-flow distribution methodologies, including cross-dock, flow-through, vendor-to-DC, vendorto-store and DC-to-store • Supports advanced planning for date-sensitive items

Benefits • Increases sales through improved service levels • Reduces procurement and inventory carrying costs • Improves turns and product sell-through while reducing stock-outs for higher margins • Provides full supply chain visibility • Enables faster response time • Reduces inventory obsolescence

COLLABORATIVE PLANNING JDA Capabilities • Compares time-phased supply plans and available production capacities with time-phased demand plans • Reconciles bottom-up to top-down demand and sales plans while highlighting variances • Supports strategic decision making to adjust production plans and schedules to profitably align supply and demand • Provides Internet portal capabilities to securely extend application views and predefined access rights to trading partners

Benefits • Increases profits • Drives sales through proactive management of supply constraints and marketing programs • Provides a complete picture of demand, including regular turn business and promotional plans • Increases asset utilization and customer fill rates • Incorporates trading partner insights into supply and demand plans

“With JDA Software’s core replenishment and collaboration solutions, Pharmavite has better visibility into our needs. It is no longer just looking at a purchase order. Now the company is really working with us to make sure that the right inventory arrives at the right BJ’s Club at the right time.” Stacey Hurd Assistant Vice President, Supply Chain Integration & Financial Control, BJ’s Wholesale Club, Inc.

VENDOR MANAGED INVENTORY JDA Capabilities • Uses customers’ point-of-sale data and/or customers’ DC withdrawals to develop a customer-specific demand plan • Models customers’ distribution networks as part of an integrated extended supply chain • Develops optimized orders that meet customer service-level goals and improve inventory productivity • Provides collaborative capabilities that enable joint ownership of managing regular and promotional demand plans

Benefits • Increases sales, turns and forecast accuracy • Reduces inventory investment and administrative costs • Enhances knowledge of product movement • Delivers faster response time • Increases material availability

SAFETY STOCK OPTIMIZATION JDA Capabilities • Evaluates tradeoffs between service-level targets and required working capital • Determines optimal mix of service levels and inventory targets for every product in the end-to-end supply chain network • Sets optimal sourcing and inventory policies to drive tactical and operational planning systems • Determines long-range capacity plans that include decision making around pre-build vs. overtime vs. third-party manufacturing • Develops contingency plans for responding to potentially disruptive supply chain events

Benefits • Improves customer service, order fill rates and total network utilization • Frees working capital tied to ineffective inventory • Reduces total operating costs, including procurement, production and logistics • Reduces costs associated with inventory obsolescence • Accelerates responsiveness to marketplace changes

ALLOCATION JDA Capabilities • Enhances and translates consumer insights and statistical demand forecasts into the right mix of products for each location • Allocates finite product based on prioritized metrics • Supports what-if analysis to test future allocation strategies prior to execution • Creates allocations based on current inventory, purchase orders and/or assortment plans • Leverages different distribution flow methods based on item and vendor characteristics • Supports multi-source order management • Provides allocation and replenishment in a single solution flow with JDA Dynamic Allocation to optimally manage a company’s full product portfolio — regardless of distribution method

Benefits • Improves stock balances • Makes targeting allocations to each location as quick and easy as possible • Accelerates and improves decision making • Enables retailers to better meet consumer expectations, driving loyalty and sales • Enables efficient inventory flow with global sourcing

Sample of JDA’s Replenishment & Fulfillment Customers Almacenes Exito S A American Eagle Outfitters, Inc. Associated Food Stores, Inc. Associated Grocers Inc Avon Products, Inc. BJ’s Wholesale Club, Inc. Black & Decker UK Ltd Brødrene Dahl A/S Brown Shoe Company Cadbury Adams USA LLC Canadian Tire Corp Ltd Coca-Cola Bottling CC Operations LLC Charming Shoppes, Inc. Church & Dwight Co., Inc. Co-operative Group (CWS) Ltd Corporate Express Office Products, Inc. Elizabeth Arden Intl SA Garden Ridge Georgia-Pacific Corporation GlaxoSmithKline U.S. Gordon Food Service Inc. Goya Foods, Inc. Guess, Inc. Harley Davidson Heinz Company Ltd Henry Schein, Inc. Iceland Foods Plc

Kraft Foods UK Ltd Lowe’s Companies, Inc. Maurice Sporting Goods McKesson Canada Meijer, Inc. Mérial Ltd Michaels Stores, Inc. MWI Veterinary Supply Co. Northern Tool & Equipment Pfizer Inc. Phillips-Van Heusen Corporation OfficeMax Incorporated RadioShack Corporation Sara Lee Food & Beverage Southern Wine & Spirits of America, Inc. Spicers Ltd Staples Sun Products Corporation Swire Beverage The Forzani Group, Ltd. Tnuva Dairy/Tnuva Food Industries Ltd. Tree of Life, Inc. Tyson Foods, Inc. Universal Studios, Inc. West Marine, Inc. Zale Corporation

Now you can be among the JDA Replenishment & Fulfillment customers reporting outstanding results and an unsurpassed customer experience with the following components: • Fulfillment

• Advanced Store Replenishment

• Dynamic Allocation

• Network Optimization

• Advanced Warehouse Replenishment

• Vendor Managed Replenishment

“JDA provides clarity into necessary actions across our entire supply chain. We have forward visibility into days of supply, safety-stock coverage and potential issues such as stock-outs that need immediate attention. Using JDA Demand and JDA Fulfillment, we increased service levels from an average of 87-88 percent to more than 95 percent.” Sharon Galatziano Senior Manager, Supply Chain Planning and Logistics Department, Tnuva Dairy, Tnuva Food Industries Ltd. (Israel’s largest food conglomerate)

Deploy JDA Replenishment & Fulfillment via JDA Cloud Services Protect your JDA software investment and increase business agility by having JDA experts manage, monitor and maintain your JDA solutions. JDA Cloud Services reduces your implementation time and risk while enabling you to quickly and easily deploy new functionality to keep pace with your changing business needs. With your software running in the cloud and upgrades included in your service, you will benefit from solutions that are optimized for your specific business requirements to help ensure that you achieve and sustain a long-term return on your investment.

About JDA Software Group, Inc. At JDA, we’re fearless leaders. We’re the leading provider of end-to-end, integrated retail and supply chain planning and execution solutions for more than 4,000 customers worldwide. Our unique solutions empower our clients to achieve more by optimizing costs, increasing revenue and reducing time to value so they can always deliver on their customer promises.

Using JDA, you can plan to deliver.

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Copyright © 2015, JDA Software Group, Inc. All rights reserved. JDA is a Registered Trademark of JDA Software Group, Inc. All other company and product names may be Trademarks, Registered Trademarks or Service Marks of the companies with which they are associated. JDA reserves the right at any time and without notice to change these materials or any of the functions, features or specifications of any of the software described herein. JDA shall have no warranty obligation with respect to these materials or the software described herein, except as approved in JDA’s Software License Agreement with an authorized licensee. 06.04.15