JDA Dynamic Allocation Simplifies Management of Product Flows to Stores
JDA Dynamic Allocation Simplifies Management of Product Flows to Stores : Historically, retailers required disparate tools to run pull-based replenishment and push-based allocation to drive sales of high-volume fast-moving products while maintaining adequate stock levels for more mature products. This created an operational silo where, in addition to using distinct solutions, each approach is managed within distinct planning organizations. This rigid separation is no longer effective given today’s highly dynamic retail landscape.
New planning capabilities in JDA Dynamic Allocation, part of JDA Intelligent Fulfillment, have been designed specifically for today’s fast-paced, omni-channel landscape and enables planners to seamlessly transition between push and pull models for the same products as needed across their lifecycles.
“The retail environment has become so complex that planners need a comprehensive, flexible new set of software functionality,” said Dan Groneck, vice president, product management at JDA Software. “One minute, they’re pushing a popular new product into every store and every channel, in huge quantities, to prepare for a launch or a holiday promotion. The next minute, they’re trying to place end-of-life products into those select stores where they are most likely to sell without a markdown. And planners also have to provide a steady stream of inventory — across all channels — that represents the brand’s foundational products that consumers will always be looking for. That’s a set of incredibly complex challenges.”
JDA Dynamic Allocation uniquely blends the “art” of estimating omni-channel, omni-region demand for new products with the “science” of mathematically replenishing inventory once demand has been established. This solution also offers time-phased planning capabilities so that allocation and replenishment levels can be changed over time — whether at different phases of the product lifecycle, during promotional events or to reflect seasonal sales spikes.
“Traditionally, planners specialized in either push-based allocation or pull-based replenishment — but today, as product life cycles shorten, they need to be much more versatile,” Groneck continued. “They need to manage the initial fill of a new product, but then have to repeatedly pull inventory of that product to keep it on shelves. They also need to maximize profitability during the markdown phase by allocating stock to the right stores, based on localized demand. In today’s fast-paced retail world, all these tasks might take place within the span of months, so planners need a flexible solution that can manage allocations no matter where products are in their life cycle. JDA Dynamic Allocation addresses that need, making the entire planning staff more efficient and productive.”
JDA Dynamic Allocation is part of JDA Intelligent Fulfillment, designed to holistically and iteratively solve inventory planning, replenishment and order fulfillment challenges in an omni-channel world. This cloud-based solution supports reductions in inventory levels and costs, improvements in customer service and increased operational agility, responsiveness and profitability.
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