JDA Software Outlines Key Strategies for Global Supply Chain and Trade Management Optimization

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 [e-mail] or call [phone] / [phone].

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.