striking a new balance in the store

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JDA Store Operations Suite Striking a New Balance in the Store

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The JDA Store Operations suite provides store managers with the unparalleled ability to consistently and profitably optimize people, space, inventory and processes in order to balance the increasing demands of customers from outside the store with the needs and expectations of customers inside the store. The suite combines JDA’s industry-leading budgeting and scheduling, space and inventory management, workforce management and task management systems with in-store picking capabilities, all of which are supported by the industry’s most seasoned team of service professionals to guide the process and deliver an integrated, comprehensive, cloud-based store operations solution. The JDA Store Operations suite enables you to: ◾ Schedule associates efficiently to optimize customer shopping experiences ◾ Assign, monitor and report on merchandising and fulfillment tasks ◾ Maximize merchandising, sales, fulfillment and returns processing ◾ Leverage cloud for agility, visibility and return on investment JDA Store Operations helps to strike a balance between the emerging demands for service, fulfillment and returns with the traditional functions of merchandising and sales, driving unprecedented efficiency and responsiveness. ◾ Maintain real-time visibility and accuracy for both internal and external needs ◾ Protect the brand and preserve margins ◾ Enhance productivity and agility in every aspect of store operations

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Page 1: Striking a New Balance in the Store

JDA Store Operations Suite Striking a New Balance in the Store

Page 2: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Sales Outlet Service Center Showroom Fulfillment Center

And Associates Must Perform New Tasks that Require New Skills…

The Role of the Store in the Omni- Channel Journey Continues to Expand

Page 3: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

While Regulations Continue to Expand….

Pressure on Stores in All Verticals Continues to Increase

Larger Menus More Promos Wider Variety Less Time

Page 4: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Store Payroll Budgets Keep Shrinking

72% Source: Integrated Solutions for Retail

of store managers indicate that their

labor budget has stayed the same or

decreased in the past year

Page 5: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

And Controlling Costs is Ever More Challenging

40% Source: DC Velocity

understand the cost of picking orders from the backroom

29% Source: DC Velocity

understand the cost of picking orders from the front of the store

Page 6: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

C-Stores Feel the Pain of Expanding Costs As Well

$204B Source: NACS

C-store sales in 2013 (all-time high)

14% Source: NACS

decrease in profit vs. 2012

19% more employees

Source: NACS

Page 7: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Store Managers are Struggling to Find the Right Balance

• Corporate Marketing

• Merchandising Activities

• Promotional Sets

• Daily Maintenance

• Food Prep

• Order Fulfillment

• Guest-Facing Activities

Page 8: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Experiences Have Suffered

15% Source: IPG Media Labs

Store shopper satisfaction

is declining

per year

Page 9: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Experiences Matter to Customers in Every Vertical

4X Source: Multi-Unit Franchisee

QSR return rates are higher when customer satisfaction rates are higher

Page 10: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

The Problem? Disconnected, Dysfunctional Tools that Don’t Scale

Schedules don’t account for skills, productivity, tasks, and availability; require heavy manual intervention

Inaccurate forecasts, by (at best) daily intervals, often developed by different tools for sales vs. labor

Disconnected and often outdated task management systems can’t handle new roles, new urgency

Makeshift in-store fulfillment processes are disruptive to both shoppers & staff and fail to scale

Patchwork inventory tools and processes cause problems in every corner of the store

Disjointed and dysfunctional fresh item/recipe management tools make planning difficult

Page 11: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Hence, Many Are Struggling…

“My stores can’t keep up with

shifting customer demands.”

“How much is it costing me to

fulfill orders from the store?”

“On-time fill rates for store orders are

low; customers are frustrated.”

“How can my managers spend less time

scheduling and more time managing?”

“Balancing in-store shoppers with outside

the store orders and corporate tasks

is a nightmare.”

“Keeping promotional items replenished

on busy days is nearly impossible.”

Page 12: Striking a New Balance in the Store

The JDA Solution

Page 13: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

To achieve maximum benefit, we have combined these solutions to deliver integrated, cross-functional schedules, tasks,

inventory, fulfillment and communications throughout the entire store

Page 14: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

The Store Operations Solution

Enterprise Store Operations

In-Store Picking

Task Management

Workforce Management

EXECUTION

JDA Cloud Reduce Risk

Support Business Agility Capabilities Adapt to New Conditions

Achieve and Sustain ROI

JDA Services Unparalleled Experience

Industry and Technology Expertise Speed-to-Value

Continuous Improvement

JDA Store

Operations

Space Planning | Distributed Order Management | Demand | Mobility

Page 15: Striking a New Balance in the Store

Examples of the Problems We Solve Just A Few Highlights

Page 16: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: Self-Service Scheduling

Schedules Include Availability

Mobile Shift Bid/Swap

Empowered Associates

More Mgr. Time on Floor

AFTER SOP

Inflexible Schedules

No Self-Service Options

Managers Backfilling

High Shortage Rates

BEFORE SOP

More Overtime | Bad Experiences | Understaffed Stores Higher Filled Shifts | Winning Experiences Short notice shift fill rates increase by 30%

Managers save 45 minutes per short notice shift

Page 17: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: Self-Service Scheduling

Schedules Include Availability

Mobile Shift Bid/Swap

Empowered Associates

More Mgr. Time on Floor

AFTER SOP

Inflexible Schedules

No Self-Service Options

Managers Backfilling

High Shortage Rates

BEFORE SOP

More Overtime | Bad Experiences | Understaffed Stores Short notice shift fill rates increase by 30%

Managers save 45 minutes per short notice shift

Page 18: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: Advanced Scheduling

Account for Demand Inside/Outside Store

Incorporate Promotion Plans

Assess return on labor investments

Identify Trends/Opportunities

Store Benchmarking

AFTER SOP

Inaccurate Schedules

Schedules Misaligned to Demand

Service Demand is Missed

High Cost of Labor

Lots of Manual Intervention

BEFORE SOP

Under/Overstaffed | More Overtime | Bad Experiences Higher Return on Labor | Better Experiences | Higher Sales

Increase store manager time on floor by 50%

88% reduction in overtime spend

Labor as % of sales improved 170 basis points

“Using JDA, we brought together the KPI’s that we

use to monitor and drive our business into a single

easy to use interface. We have also gained new

insights into key corporate strategies”

Page 19: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: Advanced Scheduling

Account for Demand Inside/Outside Store

Incorporate Promotion Plans

Assess return on labor investments

Identify Trends/Opportunities

Store Benchmarking

AFTER SOP

Inaccurate Schedules

Schedules Misaligned to Demand

Service Demand is Missed

High Cost of Labor

Lots of Manual Intervention

BEFORE SOP

Under/Overstaffed | More Overtime | Bad Experiences

“Using JDA, we brought together the KPI’s that we

use to monitor and drive our business into a single

easy to use interface. We have also gained new

insights into key corporate strategies”

Page 20: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: Mobile Task Management

Planograms Integrated with Task

Immediate Communications

Chain-wide Visibility

Mobile Execution

AFTER SOP

Floor Sets Determined in Silos

Unreliable Communications

Limited Visibility

Sporadic Compliance

BEFORE SOP

Underutilized Space | Missed Opportunities | Bad Experiences Timely Compliance | Maximized Revenue | Better Experiences

6.7% reduction in hours invested

29% reduction in premium labor costs

Improved Dept Mgr Coverage on key days

Sat: 8% | Sun 12% improvement

Page 21: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: Mobile Task Management

Planograms Integrated with Task

Immediate Communications

Chain-wide Visibility

Mobile Execution

AFTER SOP

Floor Sets Determined in Silos

Unreliable Communications

Limited Visibility

Sporadic Compliance

BEFORE SOP

Underutilized Space | Missed Opportunities | Bad Experiences Timely Compliance | Maximized Revenue | Better Experiences

Page 22: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: In-Store Fulfillment

Cobbled-Together Processes

Guesswork Staffing

Last-Minute Scrambling

Orders Not Staged

BEFORE SOP

Best Practices In-Store Picking

Staff/Skills Aligned to Demand

Tasks Assigned & Prioritized

Dashboard Status

AFTER SOP

Long Lines | Bad Experiences | Margins Eroded Higher Productivity | Winning Experiences | Higher Margins Fill 275,000 orders/week from stores

Over 850M order lines/year

Page 23: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved: In-Store Fulfillment

Cobbled-Together Processes

Guesswork Staffing

Last-Minute Scrambling

Orders Not Staged

BEFORE SOP

Best Practices In-Store Picking

Staff/Skills Aligned to Demand

Tasks Assigned & Prioritized

Dashboard Status

AFTER SOP

Long Lines | Bad Experiences | Margins Eroded Higher Productivity | Winning Experiences | Higher Margins

Page 24: Striking a New Balance in the Store

Why JDA Our Unique Selling Proposition

Page 25: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

JDA: “All In” Inside the Omni-Channel Store

High Value Functionality • High Adoption • Greater Productivity

JDA solutions have a singular focus that is unique in the industry: helping retail

managers successfully execute every facet of the

operations of the retail store as the centerpiece of the

omni-channel journey.

ONLY

Page 26: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Optimizing the Store from Front to Back

Budgeting and Scheduling

Space Management

Workforce Management

Task Management

Store Fulfillment

ONLY

Efficiency • Responsiveness • Productivity

Page 27: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Putting an End to Impossible Choices

PROFIT EXPERIENCE OUTSIDE THE STORE INSIDE THE STORE

• Consolidated sales and labor forecasts

to 15-minute increments

• Productivity tracking and analysis

• Optimize every square foot (front/back)

for maximum opportunity

• Efficient and effective picking

• Schedules align to sales & service demand

• Every task is prioritized, tracked and

reported via manager dashboards

• Integrated mobile platform ensures agility

and responsiveness wherever needs arise

• Picking routes minimize shopper disruption

ONLY

vs

Page 28: Striking a New Balance in the Store

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Guided by the Industry’s Most Experienced Professionals

200 31

40,000 1,300,000

Employees

Retailers

Countries

Stores

Image courtesy: alpha

To learn more about JDA’s Store

Planning Suite, please visit http://www.jda.com/solutions/store-operations/