JDA Software Outlines Key Strategies for Global Supply Chain and Trade Management Optimization
30 June 2009 - 10:00PM
Business Wire
Today�s global supply chains have resulted in new logistical
complexities for many manufacturers and retailers � some
anticipated, others unforeseen. Whether sourcing materials and
parts offshore or outsourcing manufacturing and assembly, the
reality is that global supply networks carry higher risk and may
present new business challenges and incur costs not fully
calculated in advance. Offshoring challenges can range from
variable lead times and the difficulty of collaborating with remote
business partners and suppliers, to more complex logistical
processes and the need to comply with diverse multi-national trade
regulations and agencies.
David Johnston, JDA Software�s senior vice president,
manufacturing and wholesale distribution, notes: �Too often, ad
hoc attempts to cope with increased transit times, more complex
logistical processes, and global trade compliance issues lead to
uncoordinated decision making, operational inefficiencies, higher
costs and, ultimately, to erosion of sales, lower profit margins
and decreased customer service. Global supply chains are inherently
fragile, with any disruption potentially resulting in lost business
and poor reactionary decision making. That�s why companies seeking
to improve global supply chain visibility and agility need to take
a synchronized, cross-functional and strategic approach.�
Johnston highlights four key strategies � based on
industry-leading best practices � which companies can implement to
help achieve more reliable, smoothly functioning global logistics
operations and trade management networks, while also helping to
reduce risk and improve supply chain visibility.
- Build an Integrated, Agile
Global Supply Network. Achieving an end-to-end supply chain
that�s driven all the way through raw material procurement requires
the linking of cross-functional operations such as sourcing,
purchasing, logistics, distribution, sales, customer service and
finance to enable timely information flow and collaboration. The
goal is to create an agile, resilient and responsive supply chain
fully optimized to meet corporate goals. By establishing an
interconnected global network in which all participants plan from a
single synchronized view of demand, companies can improve business
performance and customer service, as well as gain the flexibility
within their supply sourcing network to quickly make strategic
changes to leverage worldwide production capacities, foreign trade
agreements and tax compliance regulations. Additionally, by
leveraging responsive sourcing strategies, companies can increase
earnings and take advantage of favorable tax structures.
- Leverage the End-to-End Plan
to Collaborate with Suppliers and Transportation Providers.
Best-in-class companies have found that by developing a
time-phased, load-capacity plan and collaborating with logistics
and freight providers, they are able to drive extended visibility
all the way from the demand plan to the logistics plans to be more
efficient, reduce supply chain risk and secure better rates.
- Take More Control of the
Decision Making. The fluctuations in energy costs, combined
with the uncertain economic conditions affecting commodity and
labor cost, have many companies expanding logistics planning,
taking more control of import planning and rethinking their
decision-making to incorporate cost-saving opportunities. With
global visibility, companies can strategically rationalize and
replan what products to produce in what regions, and effectively
adjust the volume and type of products for export or import. Taking
more control of import planning and consolidation can enable
companies to provide superior levels of service at a reduced cost,
as well as achieve better integrated planning and time-phased views
of their procurement, production, transportation and logistics
requirements.
- Ensure Global Trade
Compliance. Given the complexities of international trade
compliance and new customs-trade regulations such as �10 + 2� to
identify high-risk shipments and combat against terrorism, it would
be virtually impossible for a manufacturer to independently master
all of the intricacies involved. The wisest course is to work with
technology solutions providers and trade management partners whose
core business is providing expertise in complying with customs,
security and trade regulations, policies and procedures worldwide.
For example, JDA Software partners with Management Dynamics, Inc.
to provide clients with an integrated framework for international
logistics and trade. By leveraging such joint solutions, companies
can better manage customs documentation and import/export
regulations, as well as gain greater visibility and control of
shipments from the point of origin to the point of delivery.
As a result of massive market shifts created by globalization,
many companies are facing a gap between their needs to expand
globally and their readiness to actually do so. To bridge this gap,
companies will need to adopt a combination of people, processes and
technology deployed in such a way as to achieve a highly strategic
and optimized global network. Companies of any size can leverage
advanced supply chain technology as part of their overall business
strategies and unlock the key to successful global logistics and
trade management.
To learn more about how JDA Software helps its customers to
achieve more reliable global logistics operations and trade
management networks, please visit www.jda.com.
About JDA Software Group, Inc.
JDA� Software�Group, Inc. (NASDAQ: JDAS) is the world�s leading
supply chain solutions provider, helping companies optimize
operations and improve profitability. JDA drives business
efficiency for its global customer base of more than 5,800
retailers, manufacturers, wholesaler-distributors and services
industries companies through deep domain expertise and innovative
solutions. JDA�s combination of unmatched services, together with
its integrated yet modular solutions for merchandising, supply
chain planning and execution and revenue management, leverage the
strong heritage and knowledge capital of market leaders including
Manugistics, E3, Intactix and Arthur. When supply chain results
matter, companies turn to JDA. For more information about JDA,
visit www.jda.com or contact us at info@jda.com or call +1 800 479
7382 / +1 480 308 3000.
We do not believe this press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Nevertheless, if remarks in this press release
are considered to be �forward-looking� or to have forward-looking
implications (such as the potential benefits of deploying the
specific strategies), we would remind our investors and prospective
investors that future events may involve risks and uncertainties.
These risks and uncertainties include the fact that not all users
will be able to utilize these strategies with successful results.
Other risks and uncertainties that may affect our business are
detailed from time to time in the �Risks Factors� section of our
filings with the Securities and Exchange Commission. As a result of
these and other risks, actual results may differ materially from
those predicted. We undertake no obligation to update information
in this release.
"JDA� is a registered trademark of JDA Software Group. Any
trade, product or service name referenced in this document using
the name "JDA" is a trademark and/or property of JDA Software
Group. All other trade, product, or service names referenced in
this release may be trademarks or registered trademarks of their
respective holders.
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