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Profitably Addressing Complexity in Manufacturing

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JDA Software delivers the transformational technology, best practices and expertise that manufacturers need to excel in today’s complex, dynamic environment. The cloud-based JDA Manufacturing Planning …

JDA Software delivers the transformational technology, best practices and expertise that manufacturers need to excel in today’s complex, dynamic environment. The cloud-based JDA Manufacturing Planning suite delivers the market’s leading integrated manufacturing planning capabilities for profitably satisfying customers while optimizing global inventories and resources.

The JDA Manufacturing Planning suite enables you to:

◾Segment demand to create profitable prioritization across the enterprise
◾Increase agility to effectively address change and disruption
◾Simulate buy-make-move-store-deliver scenarios to support informed decision making
◾Orchestrate planning processes to globally optimize resources, materials and assets

Providing industry-leading demand planning, inventory planning, supply chain planning, factory planning and scheduling, order promising and sales and operations planning capabilities, the JDA Manufacturing Planning suite helps manufacturers demonstrate the core tenets of high-performing supply chains — customer centricity, segmentation, business agility, synchronization and optimization.

◾Synchronize cross-functionally and provide global visibility
◾Drive plans based on true demand
◾Leverage segmentation to maximize service and profit opportunities
◾Eliminate latency and drive responsiveness
◾Drive efficiencies through optimized use of resources

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  • 1. Profitably Addressing Complexity in Manufacturing JDA Manufacturing Planning
  • 2. Increasing Complexity Proves Problematic for Manufacturers Challenges and Opportunities
  • 3. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL New Levels of Complexity Further Threaten Profit / Satisfaction Customer Empowerment Globalization External FactorsExpanding Network • Choice / Option • Expectation • Service Level • Now • Shift from Regional • Disparate Views • Varying Local Parameters • Emerging Markets • Outsourcing • External Partners • Shifting Reliance • Geopolitical / Natural Disaster • Economic Uncertainty • Cost Volatility
  • 4. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Product Proliferation: Consumers Drive Choice 100% Number of derivatives of a new car model has increased 20% Source: McKinsey Average product cycle for a new model has fallen From 2002 to 2011
  • 5. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Manufacturers Turn to Choice: SKU Counts are Increasing Number of SKUs in Grocery grew 50% between 2003 and 2010. Source: Food Marketing Institute
  • 6. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Shifts in Supply and Delivery Factors Skilled Labor Shortage 40 million by 2020 Source: McKinsey Commodity Price Increases Raw Materials by 50% Source: McKinsey Transportation & Energy Costs “Changing the Math”
  • 7. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Going Global: Accelerating Quickly Global trade has accelerated twice as fast as US GDP for the past 20 yearsSource: McKinsey 2/3 of surveyed high tech companies have presence in emerging markets. Source: IDC
  • 8. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Symptoms of Failing to Manage Complexity “I’m not meeting service levels targets, and I don’t see how they can improve.” “Our plans are so inflexible that it’s always a major disruption and margin hit to take advantage of a new opportunity or react to problems.” “My operating and expediting costs are increasing, and it’s not as simple as passing the cost on to customers.” “Achieving my production goal isn’t helping me achieve my sales goal.” “My inventory is growing.” “My topline revenue isn’t growing.” “I’m drowning in spreadsheets.” “My stakeholders are demanding more.” “I think these are my problems, but I’m not sure.” “I’m not meeting service levels targets, and I don’t see how they can improve.” “Our plans are so inflexible that it’s always a major disruption and margin hit to take advantage of a new opportunity or react to problems.” “My operating and expediting costs are increasing, and it’s not as simple as passing the cost on to customers.” “Achieving my production goal isn’t helping me achieve my sales goal.” “My inventory is growing.” “My topline revenue isn’t growing.” “I’m drowning in spreadsheets.” “My stakeholders are demanding more.” “I think these are my problems, but I’m not sure.”
  • 9. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Symptoms of Failing to Manage Complexity Results of Failing to Manage Complexity Customer dissatisfaction Missed opportunities Competing goals / incentives Stagnant growth / margin decline Excess inventory and carrying costs Misallocated resources and assets Productivity drain / data challenges Unhappy stockholders / leadership Compromised enterprise visibility Compromised decision-making Compromised timelines Compromised accuracy
  • 10. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Manufacturing Must Shift Inward-Focused One-Size-Fits-All Structure Lacked Flexibility Misaligned Functions Locally Optimized Customer-Centric Segmented to Serve Different Markets Business Agility Internal and External Synchronization Globally Optimized for Performance
  • 11. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL JDA Manufacturing Planning Suite Profitably Addressing Complexity EXECUTION Inventory Planning Factory Planning Master Planning Demand Planning JDA Manufacturing Planning Sales & Operations Planning STRATEGY Process & People Strategy and Process Organizational Design Change Leadership Continuous Improvement Access & Delivery JDA Cloud Business Agility Sustainable ROI Upgrade & Optimization Orchestrating manufacturing and distribution operations … by aligning universal and segmented demand … with resources, materials, and assets … to optimize buy- make-move- store-deliver decisions … across the enterprise.
  • 12. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problem Solved: Customer-Centric Supply Chain Scrambling to Adapt to Forecast Misfires Low Ability to Detect Market Changes Lack of Forecasting Depth Compromised Service Levels BEFORE JDA Manufacturing Planning Earlier Identification of Market Changes Improved Forecast Accuracy Ability to Plan at Lower Levels Better Service Level AFTER JDA Manufacturing Planning Underperforming Forecasts | Low Loyalty Improved Customer Understanding | Higher Loyalty Increased customer service rating to 99.5% while reducing inventory 17%
  • 13. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problem Solved: Segmented Supply Chain One-Size-Fits-All Approach to Customers Lack of Ability to Align Business Goals Compromised Profitability Boilerplate Offerings BEFORE JDA Manufacturing Planning Differentiated Service by Customer Improved Business Goal Alignment Improved Order Prioritization Segmented Demand View Improved Profitability AFTER JDA Manufacturing Planning Standard Offerings | One-Size-Fits-All Customer View Customized Approaches | Improved Profitability Grew stronger connections to customers, reduced cost / complexity, improved internal collaboration and forecasting..
  • 14. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problem Solved: Profitable & Agile Supply Chain Limited View into Global Enterprise Sluggish Planning Integration Long Response Cycles Inflexible Processes BEFORE JDA Manufacturing Planning Comprehensive Enterprise Information Ability to Reconfigure Supply Chain Agility and Quick Responses Supply / Demand Cohesion Improved Profitability AFTER JDA Manufacturing Planning Siloed Functions | Sluggish Turnarounds Improved Responsiveness | New Opportunities Doubled inventory turns; Enabled rapid response to dynamic market conditions
  • 15. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problem Solved: Synchronized Supply Chain Alignment of Supply, Demand, Finance, Etc. Greater Flexibility and Response Time Improved Asset/Resource Utilization Scenario-Based Decision Support Improved Agility AFTER JDA Manufacturing Planning Failure to Bridge Strategy and Execution Inaccurate Order Promising Compromised Service Levels Lack of Decision Support Waste of Assets BEFORE JDA Manufacturing Planning Guesswork | Failure to Adapt and Execute Supply Chain Responsiveness | Profitability Centralized planning into one process; Cut forecast lead time from 4 weeks to 2 weeks, reducing planning effort by 30%, errors by 90%
  • 16. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problem Solved: Optimized Supply Chain Improved Utilization of Assets, Inventory, etc. Improved ROI / Time-to-Value Reduced Excess Inventory Improved Service Levels AFTER JDA Manufacturing Planning Hidden Opportunities for Improvement Compromised Service Levels Expensive Miscalculations Flat Metrics BEFORE JDA Manufacturing Planning Missed Opportunity for Higher Investment Return Maximized Margin | Improved Customer Satisfaction Decreased inventory by 50% Increased on-time deliveries 90%
  • 17. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL JDA Manufacturing Planning: End-to-End “JDA has enabled us to actually take market share by being able to deliver product on time.” Fujitsu Network Communications ONLY High Value Functionality • High Adoption • Greater Productivity
  • 18. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL 20-25% Forecast Accuracy 55-94% Order Promising Accuracy 5-8% Inventory Turns 11% Production Line Efficiency .5-5% Service Level Improvement 42% Planning Effort Reduction 4-15% Safety Stock Reduction 4-8% Overall Inventory Reduction 5-12% Lost Sales Reduction JDA Manufacturing Planning: Agile, Aligned, Optimized Optimizing Opportunities for Growth
  • 19. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Putting an End to an Impossible Choice PROFIT SATISFACTION • Tighter integration of strategy to plan to execution • Improved alignment of investments with returns • Increased efficiencies and cost savings • Decisions supported with dynamic scenarios • Decreased inventory • Tighter integration of strategy to plan to execution • Improved alignment of investments with returns • Increased efficiencies and cost savings • Decisions supported with dynamic scenarios • Decreased inventory • Improved OTIF • Greater agility in responding to changes • Priorities based on segmentation • Global and expanded network resources available to meet customer expectations • Improved OTIF • Greater agility in responding to changes • Priorities based on segmentation • Global and expanded network resources available to meet customer expectations ONLY +
  • 20. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Guiding the Industry’s Leading Supply Chains 500+ 38+ Manufacturers Countries Image courtesy: alpha 20 of Gartner Top 25 Supply Chains
  • 21. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Optimizing Manufacturing Across the Enterprise Demand Planning Sales & Operations Planning Master Planning Factory Planning Inventory Planning ONLY Profitability • Customer Satisfaction • Alignment • Agility
  • 22. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL http://www.jda.com/solutions/manufacturing-planning/ Discover More about JDA Manufacturing Planning