Planning in the Cloud: JDA Software Reshapes Supply Chain Management for Manufacturers
September 01 2010 - 8:00AM
Business Wire
In the past 24 months, the interest in cloud computing—a general
term for software deployed through hosted, managed services and
software-as-a-service (SaaS) models—has continued to grow. As a
result, the movement of more business applications into the cloud
is becoming more prevalent. According to a recent report from ARC
Advisory Group, the supply chain management market grew 7 percent
in the last five years, while the SaaS market, in comparison, grew
at a compound annual growth rate in excess of 20 percent during
those same five years.1 With the need for more reliable forecasts
and rapid implementations, manufacturers are seeking solutions that
leverage the benefits of supply chain planning applications without
the traditional investment of implementing on-site technology,
providing faster time-to-value and lower cost of ownership.
“Cloud computing provides manufacturers new ways to benefit from
a fast return on their supply chain management investment while
avoiding hefty upfront hardware and infrastructure costs,” said
Kelly Thomas, senior vice president, manufacturing, JDA
Software. “As a result, manufacturers can improve forecast
accuracy and provide more reliable demand visibility, which leads
to enhanced customer delivery performance, improved cash flow and
reduced inventory across the supply chain.”
JDA Software highlights the following
benefits of cloud computing for the supply chain:
The metrics are quantifiable. In
today’s dynamic business environment, the ability to deploy
sophisticated planning solutions in just a few weeks and with
minimal staffing requirements creates an exciting new opportunity
for manufacturers to rapidly optimize operations, respond to new
market challenges and reduce costs. This capability enables
manufacturers to quickly start generating reliable forecasts and
optimized master production plans based on a global view of
customer demand. By bridging the gap between front- and back-end
planning, manufacturers can more efficiently satisfy customer
demand, while improving overall profitability through better
inventory investments. Improved sales, reduced cost of goods sold,
increased asset throughput and a decrease in inventory are just a
few of the potential top-line and bottom-line benefits of
cloud-based solutions.
Supply chain performance is
improved. Cloud-based supply chain solutions can offer robust
supply chain and master planning capabilities based on a supply
chain model that includes factories, distribution networks and
suppliers. An intelligent supply planning optimization workflow
produces a global master plan that delivers comprehensive analysis
and visibility, as well as proactively identifies exceptions and
supply chain constraints. Popular cloud-based features include:
- Inventory, factory operations,
distribution, capacity and supplier shipment plans
- Pegging and allocation
capabilities
- Multi-dimensional demand
prioritization
- Forecast netting, spreading and
expiration
- Forecasting based on revenue,
units, margin and other financial and corporate measures
- New product forecasting and
workflows
- Demand consensus workflows
- Exception-based alerts
- What-if analysis and
side-by-side plan comparison
Benefits can be realized in eight to 10
weeks. The quick deployment of a cloud-based solution is due to
its hosted delivery model, template-based dashboards and workflows,
robust reporting and analytics capabilities. Hardware does not have
to be procured or installed inside the company. Instead,
manufacturers can leverage the infrastructure already in place
through their managed services organization. Within eight to 10
weeks, manufacturers can start realizing supply chain improvements
based on reports that analyze items such as the annual operating
plan and outlook, the forecast waterfall, on-hand and projected
end-of-quarter inventory and delivery performance, among
others.
Silicon Image, a Sunnyvale, Calif.-based leading provider of
semiconductor and intellectual property products for the secure
distribution, presentation and storage of high-definition content,
uses JDA’s hosted, on-demand supply chain solution to drive
integrated demand and supply planning across its global supply
chain. By leveraging the benefits of cloud computing, JDA® Planning
on Demand gives manufacturers like Silicon Image access to supply
chain planning tools and analytics in a non-intrusive manner that
delivers fast results.
To learn more about how JDA Software helps manufacturers improve
supply chain results with SaaS, hosted and managed services, view
the Planning on Demand video or visit www.jda.com.
1 ARC Advisory Group, “SaaS to Become a Significant Supply Chain
Management Market Driver,” July 29, 2010
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain
Company®, is a leading global provider of innovative supply chain
management, merchandising and pricing excellence solutions. JDA
empowers more than 6,000 companies of all sizes to make optimal
decisions that improve profitability and achieve real results in
the discrete and process manufacturing, wholesale distribution,
transportation, retail and services industries. With an integrated
solutions offering that spans the entire supply chain from
materials to the consumer, JDA leverages the powerful heritage and
knowledge capital of acquired market leaders including i2
Technologies®, Manugistics®, E3®, Intactix® and Arthur®. JDA’s
multiple service options provide customers with flexible
configurations, rapid time-to-value, lower total cost of ownership
and 24/7 functional and technical support and expertise. To learn
more about JDA Software, please visit www.jda.com, e-mail
info@jda.com or follow JDASoftware on Twitter.
This press release contains forward-looking statements that are
made in reliance upon the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are generally accompanied by words such as “can,”
“will,” “ensure,” “help,” “enable” and “expect” and other words
with forward-looking connotations. In this press release, such
forward-looking statements include, without limitation, remarks
that certain cloud-based supply chain solutions can lead to certain
benefits. The occurrence of future events may involve a number of
risks and uncertainties, including, but not limited to: (a) the
solutions may not perform as anticipated; (b) there may be
implementation and integration problems associated with the
solutions; and (c) other risks detailed from time to time in the
“Risk Factors” section of our filings with the Securities and
Exchange Commission. Additional information relating to the
uncertainty affecting our business is contained in our filings with
the SEC. As a result of these and other risks, actual results may
differ materially from those predicted. JDA is not under any
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements, whether as a result
of new information, future events or otherwise.
“JDA” is a trademark or registered trademark of JDA Software
Group, Inc. Any trade, product or service name referenced in this
document using the name “JDA” is a trademark and/or property of JDA
Software Group, Inc.
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