Allocating in Style: Across More Than 450 Stores, Ackermans Meets Consumers’ Fashion Needs via JDA Solutions
0 likes1,356 views
Ackermans, a leading South African retailer, has improved its merchandise planning and allocation processes by implementing JDA software solutions. This transition has expedited stock allocation from two days to about one hour, enhanced planning productivity, and allowed for better alignment with consumer demands, resulting in an increased assortment in stores. Overall, these improvements have enabled Ackermans to respond more effectively to market opportunities while maintaining a focus on customer needs.
Allocating in Style: Across More Than 450 Stores, Ackermans Meets Consumers’ Fashion Needs via JDA Solutions
- 1. Case Study Allocating in Style Across More Than 450 Stores, Ackermans Meets Consumers’ Fashion Needs via JDA Solutions Ackermans Fast Facts Industry Retail – Softlines Headquarters Cape Town, South Africa Description Founded in 1916, Ackermans has grown to become one of South Africa’s leading retailers, offering stylish and affordable apparel, footwear, home goods and accessories to consumers of all ages. In addition to its Ackermans-branded flagship stores, the retailer operates young urban stores under the Jay Jays name, footwear outlets under the Shoe City banner and surf Objective shops under the Hang Ten brand. Automate the merchandise planning process all the way to allocating the right level of stock in each store. Solutions • JDA® Allocation “If you go into our stores now, you’re • JDA® Enterprise Planning likely to find the item you’re looking for. You’re likely to find that item in many Services colors because we’re now able to do • JDA Education Services that kind of sophisticated allocation.” • JDA Implementation Services - Renee Jain, • JDA Performance Engineering IT systems manager, • JDA Support Services Ackermans Alliance Partner • UCS Solutions Pty Ltd. Real Results • Better positioned to take advantage of new market opportunities • Increased planning productivity, resulting in improved store-level assortments • Reduced overall business processes from two days to one hour • Substantially decreased planning costs
- 2. Despite having a range of attractive, At the time, Ackermans was already excited about getting this new variable stylish merchandise on hand, South leveraging JDA® Enterprise Planning to that was going to be driving the allocation African retailer Ackermans realized several manage its strategic, merchandising and calculation for them. The implementation years ago that accurately allocating location plans. JDA Enterprise Planning was done in about three months. It was merchandise across its more than 450 allows companies to easily optimize all of really, really quick.” stores had become quite challenging. the strategic, merchandise, assortment, operational and resource planning Today, Ackermans has realized enormous “Our employees were being asked to activities across the supply and demand efficiency and productivity gains by using literally type in what the merchandise chain. JDA Allocation. “Previously, it was taking allocation needed to be,” said Renee around 20 minutes to do an allocation Jain, IT systems manager for Ackermans. “We are a planning-focused environment,” per item,” said Jain. “Our planner found “The system would give them the full noted Jain. “We’ve got this really great out from the distribution center by list of stores. It would tell them that this expertise in using JDA Enterprise phone or by email that new stock had new stock has arrived. Then they had to Planning, but we were using a little in- arrived. Then they had to pull all of the work it out for themselves. There was house application for allocation that was relevant information into our homegrown no automation; there was no consumer not delivering the same level of results. application, which was not very user- variable to tell them how to allocate We’d come up with a fantastic plan, but friendly. The allocation process itself was the new stock. It was very hit-or-miss, our execution was lacking. We hadn’t built very manual and not supported by the depending on how a particular planner a process that carried the plan all the way system behind it. The overhead associated viewed his or her environment.” to execution, and allocation is a critical with this process was enormous.” part of that.” As a result of this labor-intensive “Now, from the minute the stock arrives process, Ackermans was missing sales in the distribution center, there’s about opportunities at the individual store level. Improving Efficiency and an hour’s turnaround,” said Jain. “The data “Stock ended up in a particular store that sits inside JDA Allocation, and it comes up was wrong for that location,” said Jain. Productivity in each planner’s work list automatically. “Other stores did not receive stock at all That list contains only what that specific To overcome this business challenge, because they were down on the last page person needs to plan. Instead of seeing Ackermans turned to JDA Software. of the allocation list, and by then the a lot of information they have to wade “The focus of the entire JDA® Allocation planner had run out of steam. We knew through, the process is tailored to that implementation was adding that we had to improve our efficiency and particular person,” said Jain. ‘consumer need’ variable,” said Jain. productivity so that allocation was based “Because we were centered on “JDA Allocation brings up all of the on meeting actual shopper needs.” understanding that consumer need, it store groups we’ve already built in the focused the implementation process and assortment planning process. It brings up made it very easy. Our planners were so what we would like to have put into stores
- 3. via assortment planning. It also builds parameters. If you go into our stores now, about how to operate better. With a the ‘consumer need’ variable. Next it does you’re likely to find the item you’re looking JDA solution, they actually have the the allocation. All our planners need to for. You’re likely to find that item in many opportunity to rethink their business do is validate the allocation and push colors because we’re now able to do that processes, look at best practices and bring it out the door. Our planners know that kind of sophisticated allocation.” in efficiencies and ways of thinking that JDA Allocation is going to work the way it were not there before.” needs to work, so they just have a quick According to Jain, JDA Allocation has look and release it. That process, which created an entirely new mindset around “Our business users are coming to the IT used to take 20 minutes, now takes two to merchandise planning at Ackermans, team and saying, ‘Won’t you tell us more five minutes,” said Jain. which is expected to be a significant about this JDA solution? Let’s have a look growth engine for the 95-year-old retailer. at this business process and see if we can’t “From there, the allocation flows within “For the first time in Ackermans history, replace what we have today.’ That’s really minutes back into our distribution center JDA Allocation has given us the ability exciting for someone in IT, because it systems, which previously would take and opportunity to arrange a different means I get to contribute to changing the a day,” added Jain. “The entire business set of items in our stores because we can face of how our users do business. When process has gone from two days to about plan and allocate stock better,” said Jain. you’re standing and looking out into the an hour now.” “Before, we were simply saying, ‘Here future, it’s such an exciting place to be.” comes a season. Let’s try and repeat what Ackermans has used its efficiency we did last year because it’s so labor- improvements not to cut staff, but to intensive.’ Now we go through a more About JDA Software Group, Inc. increase the scope of its merchandise fashion-oriented process. We stand back allocation and enhance assortments. “Our and assess opportunities.” JDA® Software Group, Inc. (NASDAQ: planners are now able to plan about twice JDAS), The Supply Chain Company®, is as many items as before because it’s so “As an example, Ackermans has always the leading provider of innovative supply much easier for them. Because they now been well-known for its baby and toddler chain management, merchandising and have more time on their hands, we can clothing. We’ve suddenly realized, ‘We’ve pricing excellence solutions worldwide. broaden the assortment in our stores,” got the mom shopping with us, but we JDA empowers more than 6,000 companies said Jain. never offer her anything to buy.’ We’re now of all sizes to make optimal decisions doing a big ladies wear project, because that improve profitability and achieve we have the ability to allocate the stock real results in the discrete and process Meeting Local Shopper Needs easily into the stores. JDA Allocation has manufacturing, wholesale distribution, given our planners the ability to think transportation, retail and services Not only has Ackermans increased the bigger than what they did last year. I think industries. With an integrated solutions productivity and scope of its allocation if we look back on this whole process, offering that spans the entire supply process, but today the retailer has back two or three years, the catalyst for chain from materials to the consumer, increased confidence that the right change has been the entire planning JDA leverages the powerful heritage and products are being sent to the right stores. process coming to fruition in an execution knowledge capital of acquired market By targeting local consumer demand, product like JDA Allocation,” said Jain. leaders including i2 Technologies®, then matching specific products to that Manugistics®, E3®, Intactix® and Arthur®. demand, Ackermans is fulfilling the JDA’s multiple service options, delivered via promise of its tagline, “Just What You Need.” Fashioning Future the JDA® Private Cloud, provide customers “Now our stores are actually selling what Opportunities with flexible configurations, rapid time-to- our customers want. We’ve also got the value, lower total cost of ownership and right levels of stock in each store,” said “Today, we’re loving JDA,” said Jain. “With 24/7 functional and technical support and Jain. “Our consumer-need variable tells us now moving to best-of-breed JDA expertise. us how much stock should go into that solutions and looking at new solutions store based on a number of different that suit a particular strategic need, our business units are starting to think WEB AMERICAS EUROPE ASIA PACIFIC www.jda.com US UK & Northern Europe Singapore Japan Bangalore EMAIL +1 800 479 7382 +44 (0) 1344 354500 +65 6305 4350 +81 3 4461 1000 4-Color +91 80 3028 8888 info@jda.com Canada & Latin America France & Southern Europe Australia China Mumbai +1 480 308 3555 +33 (0)1 56 79 27 00 +61 2 8912 7900 +86 21 2327 9400 +91 22 3088 7878 Copyright © 2011, JDA Software Group, Inc. All rights reserved. JDA is a Registered Trademark of JDA Software Group, Inc. All other company and product names may be Trademarks, Registered Trademarks or Service Marks of the companies with which they are associated. JDA reserves the right at any time and without notice to change these materials or any of the functions, features or specifications of any of the software described herein. JDA shall have no warranty obligation with respect to these materials or the software described herein, except as approved in JDA’s Software License Agreement with an authorized licensee. 10.13.11