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JDA Creates a More Profitable Omnichannel Supply Chain

8/18/2015
JDA Software Group, Inc. announces new integrated fulfillment capabilities that combine JDA Intelligent Fulfillment and Labor Productivity solutions with Order Management solutions from IBM Commerce. By leveraging this technology collaboration, companies can process orders more intelligently and profitably across sales channels in real-time.
 
Companies need to offer personalized, differentiated customer experience while delivering the order as promised. In the past, retailers made fulfillment decisions without a holistic view of inventory, labor and transportation availability and costs, and have historically sacrificed profit margins to deliver customer satisfaction. Integrating with IBM will provide the necessary visibility in execution to labor and demand impacts -- allowing companies to begin improving profitability with each omnichannel order.
 
Some shoppers that select the ‘pick up in store’ option might need to visit multiple store locations to fulfill their entire order, which ultimately tarnishes their brand experience. By leveraging the combined expertise of IBM and JDA, retailers can present order fulfillment options in real-time.
 
The latest JDA release delivers benefits to retailers and shoppers:
   
“Click and Collect” ordering delivers simple, customized ordering for shoppers, and cost savings for retailers. Instead of navigating a confusing array of options, the new capabilities offer a simplified experience that allows shoppers to select their preferred pick-up or delivery time and location. Behind the scenes, JDA and IBM integrate the order management, the warehouse management and the transportation management systems to fulfill each order profitably. For example, retailers can reduce inventory by linking directly to distribution centers and hubs while maximizing transportation assets by automatically consolidating shipments and optimizing routes.

“Rescue the Return” minimizes the cost of product returns. Product returns are becoming significantly more costly for omnichannel retailers who lack visibility into incoming returns, and the resources needed to process these items. As a result, returned items languish at a store location rather than being added back into inventory and sold to a customer. JDA’s new release features an intelligent returns authorization process where the order management system alerts the warehouse management system of expected returns. By including returned items as part of available inventory, teams can proactively fulfill orders and reduce the number of mark-downs in order to minimize lost sales, and maximize margins.

Destination-driven demand shows the true source of orders. When shoppers can’t find the product they’re looking for in a store, store associates typically arrange for delivery from a fulfillment center to their home. However, traditional fulfillment systems fail to attribute this demand to that store location which results in forecasts and inventory plans which, over time, fail to deliver an accurate assessment of what is in stock, which can ultimately impact the customer’s experience. With these new capabilities, teams have insight into each customer’s omnichannel order details which enables accurate forecasting and replenishment of stores and, more broadly, improved upstream inventory positioning to reduce labor, transfer and shipping costs in the future.      
 

Additional Resources:
-          Download the “Conquering the Omni-channel Challenge – Today and for the Long Term” white paper.
-          Supply Chain Nation blog on today’s news: “Finally, a True Picture of Demand.” 
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