Leading Food Manufacturer Signs for Additional JDA Solution to Further Enhance Visibility into the Extended Supply Chain; Lowering Cost and Improving Short Term Forecast Accuracy
SCOTTSDALE, Ariz.--JDA® Software Group, Inc. (NASDAQ: JDAS) today announced that H.J. Heinz, one of the world’s leading marketers and producers of branded foods, has licensed JDA Dynamic Demand Response solution to further improve visibility into its North America supply chain, enabling the company to sense and respond to market demand fluctuations. Both companies collaborated to define the requirements of the new groundbreaking JDA solution, ensuring a robust, high-performance application that will deliver quantifiable improvements across key processes resulting in a lower-cost extended supply chain.
With this solution, Heinz further extends the capabilities of its JDA supply chain platform, consisting of six previously implemented solutions allowing increased visibility into high impact areas including deployment, replenishment planning and forecasting.
“We recognize that customers do not always respond in a predictable manner, and Heinz needed to improve its ability to sense and respond to change. We have already received tremendous benefits through the use of JDA Software’s market-leading solutions and this new solution will take us to the next level and beyond in our performance capabilities. The joint development of the Dynamic Demand Response solution with JDA offers significant benefits for Heinz as the product is designed with the key challenges and data in mind which positions us well for continued success,” said Mike Sloboda, director of logistics and planning at Heinz.
JDA’s Dynamic Demand Response solution provides the world’s leading manufacturers, such as Heinz, with the unique capability to very accurately adjust forecasts to respond quickly to daily customer buying patterns and align forecasts with confirmed customer orders. JDA offers the only solution that will align or “pace” orders accurately with forecasts, regardless of whether the orders are received early or late in relation to the planned customer demand.
Heinz also expects the solution to allow it to more accurately evaluate whether incoming customer orders are promotional or standard orders. By linking together promotional orders and promotional forecasts, costly overstocks due to early promotional orders and crippling out-of-stocks due to late promotional orders are virtually eliminated, resulting in reduced inventories and improved customer service.
The JDA and H.J. Heinz teams conducted an early evaluation of the Dynamic Demand Response solution. Preliminary test results across two key business categories demonstrated a 32 percent and 25 percent decrease in error respectively, over and above the great results they were receiving from their earlier JDA solutions. Reducing the error in this critical execution period will not only drive better product allocation decisions in the network but also reduces the inventory investment required to meet and exceed desired service levels.
Wayne Skinner, vice president of supply chain at Heinz, said, “It is clear that Dynamic Demand Response enhances the benefits in forecast performance we attain with JDA Demand Planning by sensing and responding to the current short term demand picture. We see this solution as an additional way to give Heinz a competitive advantage in the market place. It allows us to avoid costly overstocks resulting from promotions occurring earlier or later than anticipated, in addition to driving lower inventories and fewer expedited shipments. We already have a proven technology platform with JDA that is firmly in place at Heinz. We expect a high level of success in implementation and benefit realization with Dynamic Demand Response.”
“Heinz’s preliminary results with Dynamic Demand Response demonstrate the strength of the JDA solution. By leveraging a highly accurate and responsive view of demand across the extended supply and demand chain, manufacturing companies, including Heinz, can create further differentiation and competitive advantage. JDA is committed to providing innovative solutions that enable companies to transform their supply chains to drive increased profits,” said David Johnston, JDA senior vice president of supply chain.
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results -- fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers, and services companies around the world are growing their businesses with greater predictability and more profitably. For more information on JDA Software, visit www.jda.com or contact us at
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