Jda Supply Chain Whitepaper
Jda Supply Chain Whitepaper
Rakesh Churiwala
Sameer Nagpal
FEBRUARY 2012
Creating value across Supply Chain
Abstract
The consumer services industry is changing fast and becoming a lot more
competitive. Rapid technology changes combined with a hyper
connected and evolving consumer, means that organizations need to be
able to respond to these changes fast, and ensure a more dynamic decision
making process.
One of the key strategies organizations will need to adopt to survive and
flourish in this environment, is to optimize supply chain planning to
maximize return on investment.
Target Audience
This whitepaper focuses on the key industry trends and challenges and
how HCL’s service offerings delivered through the Supply Chain Center
of Excellence helps address these changes.
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Creating value across Supply Chain
Changing Landscape
Increasing globalization of the supply chain and shortening product
lifecycles means organizations will have to optimize their supply chain
planning to maximize the return on investment. Getting the right
product, at the right place, at the right time, and at the right price has
become a basic necessity. Apart from these business challenges,
organizations today are struggling to keep IT costs under control. Adding
to this challenge is the lack of standards in a complex, highly customized
IT environment, which leads to integration difficulties and makes any
additional development cumbersome and expensive.
?Product complexity
?Shortening of product life cycles
?Extended supply chain
?Managing multi-channel operations
?Process complexity
?High demand volatility
?Increasing lead times
?Lost sales and brand erosion due to stock outs
?Highly competitive and margin sensitive industry
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Creating value across Supply Chain
Logistics
Demand
Supply
ERP
This process calls for the retailer to conduct macro-level floor planning to
determine the amount of shelf space required by supplier. This will help
in quick responses to consumer choices at the shelf and across all buying
channels. A shelf connected supply chain allows both manufacturers and
retailers to maximize revenue, eliminate stock outs while removing any
additional cost across the supply chain. To do this effectively, the
industry needs a new breed of technology that can be scaled up cost-
effectively to handle vast amounts of data across the value chain to drive
accurate decision making. Organizations today are taking on new
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Creating value across Supply Chain
processes that connect the virtual shelf to the entire supply chain,
enabling them to develop localized assortments, shorten cycle times, set
profitable flow strategies, reduce inventories, trim costs and improve
shelf availability.
Shelf Analytics
Retailers today are not just leveraging historic data, but are adopting new
practices and solutions to analyze the shelf with an eye on the future.
Root cause analysis to identify phantom/ghost inventory, inappropriate
ordering parameters, inaccurate demand forecasts, insufficient shelf-
space allocation and poor in-store execution is conducted to identify
which items are likely to be out of stock. Leveraging this information,
manufacturers can collaborate with retailers to adjust forecasting and
replenishment parameters, and correct inventory inaccuracies.
HCL Offering
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Creating value across Supply Chain
HCL works with industry specialists and customers through our Centers
of Excellence in supply chain. Our involvement in the industry ranges
from improving supply chain efficiency, streamlining store operations,
ement
Project Manag
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Creating value across Supply Chain
y
log
Demand Planning
Forecasting Algorithms (FMCG/ Specialty Products/Retail) ?
do
Me OE
tho
Bulk New Product Introduction ?
C
gra JDA
Demand Classification ?
de
Demand Planning & Decision Support Workbench ?
Functional
Exception Graphs ? Upgrade
Up
Capture impact of events in Demand Planning ?
Reconciliation top-down & bottom-up (Special Features) ?
Tune Algorithms Automatically (Based on History) ?
?
Replenishment Planning
nt
me
Order Pegging (Supply Demand Linking - For Planner's View) ?
ge
Ability to specify ASAP shipping ?
na
Ma
Better Control for Planning & Management of Perishable Items ?
m
Advance Features for Priority Based Demand Allocation ?
gra
Fair-share Distribution on Equal Priorities of Orders ?
Pro
Option to Allocate Reserved On Hand ?
More Constrained Based Replenishment Planning ?
Pre-upgrade
Automated Migration
Scripts
Quick Data
Setup for POC
& Post-upgrade
Training
Template
Accelerators
checklist
Solution Differentiator
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Creating value across Supply Chain
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Creating value across Supply Chain
Benefits:
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Creating value across Supply Chain
The JDA practice provides a mature onsite/offshore model for ASM. For
example, HCL is currently supporting two of the largest Manugistics
implementations in Europe. This covers support of Manugistics version
7.2.2 and 7.4.2. In the past HCL has supported almost all the versions of
JDA applications from version 6.x to version 7.5.
Integrated
Delivery
Process Model
& Services
Methodology
Engagement &
Project
Governance
Benefits:
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Creating value across Supply Chain
HCL and JDA both have a strong Asia Pacific focus and have executed a
large number of green field implementations in India for big retailers like
Shoppers’ Stop, Essar Group, Piramyd (IndiaBulls), Heritage, and House
Full. Extensive experience in JDA has helped HCL serve various
lifestyle, specialty retailers and CPG companies such as Dixon, IKEA,
Timberland, GSI Commerce, Heinz and Reckitt Benckiser.
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Creating value across Supply Chain
Business Benefits
Through HCL’s proven methodology and deep industry knowledge,
manufacturers and retailers can achieve the benefits of higher turnover,
improved margin, optimized inventory and service levels and reduction
in cost. Business benefits can be achieved in the following areas:
Case Study:
The Global furniture retailer, with an annual turnover of € 22.7 Bn, is the
leading market player with more than 300 stores in 30+ countries. Its
supply chain spans across geographies, with China, Poland, Italy and
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Creating value across Supply Chain
To support the complex supply chain planning process, the retailer used
JDA Supply Chain suite of solutions, such as:
Global Requirement
HCL helps customer in leveraging Planning
JDA/Manugistics Center of
Excellence for their Supply Chain
area. Supply Chain Planning Information Exchange
(Integration Layer on Oracle PL/SQL)
Store Replenishment Planning
Application Clustering
Support for Demand & Supply Planning
(Demand & Fulfillment v7.x)
Benefits
Support & Maint of Ver 6.x • Development of scarce resources
Development & Support of V7.x ?
Reduce JDA Consultant (Product
(Network Capacity Planning) Company) dependency by 70%
?
Lower cost of resource (50% of total
IKEA COE Setup
are in-house trained)
• -7%
• Cross-skilling (Demand &
Fulfillment) and multi-skilling (DBA,
Migration of 6.x to 7.x
Sys Admin, Technical)
?JDA® Demand
?JDA® Fulfillment
?JDA® Market Manager
?JDA® Monitor
Business Challenges
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Creating value across Supply Chain
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Creating value across Supply Chain
Value Delivered
Real Results:
?Reduced TCO: Reduced cost of implementation, execution, and
maintenance. This was possible due by aligning JDA centers of
excellence, standardizing system landscapes and business
processes; minimizing software installations, and following a
strategy of managed, limited systems customization.
?Customer Focus: Ensuring active customer involvement with the
core team, steering committee, and other stakeholders.
?Manage Performance: This was due to better insights into JDA
product road maps and strategies. Standardizing system setups,
minimizing the use of third-party applications and following
standard upgrade plans also made this feasible.
Conclusion
The major trends and challenges we are witnessing across the industry
have a deep impact on profits and revenues. While changes in the supply
chain process will vary from company to company, they must freeze on
these changes in advance and then implement them in stages. It is also
important to remember that supply chain processes are interrelated,
compelling companies to evaluate how optimization fits into their long-
term solution architectures. An integrated process consisting of a
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Creating value across Supply Chain
Rakesh Churiwala
Deputy General Manager
Sameer Nagpal
Deputy General Manager
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ABOUT HCL
HCL Technologies
BUSINESS PROCESS HCL Technologies is a leading global IT services company, working with
OUTSOURCING clients in the areas that impact and redefine the core of their businesses.
Since its inception into the global landscape after its IPO in 1999, HCL
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