Scottsdale, Ariz. – September 1, 2010 – 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 email@example.com or follow JDASoftware on Twitter.
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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.
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