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Authors
                Rakesh Churiwala
                  Sameer Nagpal




FEBRUARY 2012
Creating value across Supply Chain




                                         Abstract
                                         The consumer services industry is changing fast and becoming a lot more
                                         competitive. Rapid technology changes combined with a hyper
                                         connected and evolving consumer, means that organizations need to be
                                         able to respond to these changes fast, and ensure a more dynamic decision
                                         making process.

                                         One of the key strategies organizations will need to adopt to survive and
                                         flourish in this environment, is to optimize supply chain planning to
                                         maximize return on investment.

                                         An effective supply chain strategy will be imperative to not only address
                                         market challenges but also proactively meet fluctuations within the
                                         demand and supply chain. At HCL, we understand these challenges and
                                         the risks and provide solutions that enable Retail organizations to
                                         accelerate revenues and profits. By leveraging in-depth industry
                                         knowledge and insights, HCL provides end-to-end solutions that
                                         optimize processes across critical business functions such as merchandise
                                         planning, demand planning and replenishment. In addition, our
                                         solutions can be integrated with the core business processes to ensure that
                                         the business stays in line with the customer’s need.

                                         Some of the key industry trends in Supply Chain:

                                         ?Customer-driven responsive supply shain
                                         ? connected supply chain
                                          Shelf
                                         ? analytics
                                          Shelf
                                         ?Demand synchronization
                                         ?Collaboration on forecasting and store replenishment

                                         These will be looked at in detail later.

                                         Target Audience
                                         This whitepaper focuses on the key industry trends and challenges and
                                         how HCL’s service offerings delivered through the Supply Chain Center
                                         of Excellence helps address these changes.




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Creating value across Supply Chain



                                         This paper is targeted at professionals across the consumer services,
                                         supply chain, logistics and manufacturing industry such as:

                                         ?Operations/ retail business managers
                                         ?Business and/or technology consultants
                                         ?IT professionals

                                         Changing Landscape
                                         Increasing globalization of the supply chain and shortening product
                                         lifecycles means organizations will have to optimize their supply chain
                                         planning to maximize the return on investment. Getting the right
                                         product, at the right place, at the right time, and at the right price has
                                         become a basic necessity. Apart from these business challenges,
                                         organizations today are struggling to keep IT costs under control. Adding
                                         to this challenge is the lack of standards in a complex, highly customized
                                         IT environment, which leads to integration difficulties and makes any
                                         additional development cumbersome and expensive.

                                         The critical risks organizations face today:

                                         ?Product complexity
                                         ?Shortening of product life cycles
                                         ?Extended supply chain
                                         ?Managing multi-channel operations
                                         ?Process complexity
                                         ? demand volatility
                                          High
                                         ?Increasing lead times
                                         ? sales and brand erosion due to stock outs
                                          Lost
                                         ?Highly competitive and margin sensitive industry

                                         It is vital to respond to these challenges and proactively meet fluctuations
                                         within the demand and supply chain.

                                         Organizations can tackle supply chain challenges with the following
                                         strategies:

                                         ?Flexibility, scalability and integrated supply chain processes to
                                                       manage the consumer-centric global supply Chain.
                                         ?Optimizing decision making processes across the supply chain
                                          by addressing the dynamic nature of demand, sub-optimized
                                          plans, and sub-standard customer service levels.
                                         ?Optimizing distribution and production planning with an
                                          enhanced Sales & Operation Plan (S&OP).
                                         ?Collaborative visibility into all critical functional areas for
                                          comprehensive optimization of processes
                                         ?Planning that is integrated and executable with total demand
                                          visibility.


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Creating value across Supply Chain



                                         ?Leverage and extend the value of the current transaction system
                                          and seamless integration of the supply chain solution with the
                                          ERP or legacy system.
                                         ?Improve the customer service level, order fill rate, inventory
                                          availability and asset utilization.
                                         ?Decrease safety stock and overstock to optimize inventory and
                                          carrying cost

                                         Key trends across the supply chain and new
                                         strategies to keep pace:

                                         Customer Driven Responsive Supply Chain
                                         HCL offers a complete supply chain planning and optimization
                                         specialized suite with the right capabilities to enable a customer driven
                                         value chain. A customer driven supply chain begins with the right
                                         insights into the buying behavior. It also provides one view of demand to
                                         drive every single plan within an enterprise and across the value chain,
                                         ultimately enabling synchronized decisions by all stakeholders from
                                         manufacturing, distribution to store operations.

                                                                                  Integrated Business Planning
                                                                          Collaboration




                                                                                                                                      Logistics
                                                                                              Demand



                                                                                                                  Supply




                                                                                          One Synchronized View
                                                                             Collaboration, Visibility and Monitoring

                                                                                                       ERP

                                         Shelf Connected Supply Chain
                                         The objective of collaborative planning at the shelf for both retailers and
                                         manufacturers is to serve the consumer at an optimal cost.

                                         This process calls for the retailer to conduct macro-level floor planning to
                                         determine the amount of shelf space required by supplier. This will help
                                         in quick responses to consumer choices at the shelf and across all buying
                                         channels. A shelf connected supply chain allows both manufacturers and
                                         retailers to maximize revenue, eliminate stock outs while removing any
                                         additional cost across the supply chain. To do this effectively, the
                                         industry needs a new breed of technology that can be scaled up cost-
                                         effectively to handle vast amounts of data across the value chain to drive
                                         accurate decision making. Organizations today are taking on new


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Creating value across Supply Chain



                                         processes that connect the virtual shelf to the entire supply chain,
                                         enabling them to develop localized assortments, shorten cycle times, set
                                         profitable flow strategies, reduce inventories, trim costs and improve
                                         shelf availability.

                                         Collaboration on Forecasting and Store
                                         Replenishment Strategies
                                         Retailers frequently come across large gaps in order patterns resulting
                                         from their decision to change service levels, safety-stock settings, lead
                                         times, transportation modes and order parameters. Collaborating around
                                         replenishment policy and store-level forecasts allows both the supplier
                                         and retailer to better manage merchandise flow.

                                         Shelf Analytics
                                         Retailers today are not just leveraging historic data, but are adopting new
                                         practices and solutions to analyze the shelf with an eye on the future.
                                         Root cause analysis to identify phantom/ghost inventory, inappropriate
                                         ordering parameters, inaccurate demand forecasts, insufficient shelf-
                                         space allocation and poor in-store execution is conducted to identify
                                         which items are likely to be out of stock. Leveraging this information,
                                         manufacturers can collaborate with retailers to adjust forecasting and
                                         replenishment parameters, and correct inventory inaccuracies.

                                         HCL Offering

                                         HCL’s JDA Practice is a hub for knowledge sharing and capability
                                         building in domain areas such as retail, CPG, manufacturing,
                                         pharmaceuticals and automobile industries and for specific JDA product
                                         suites around supply chain planning, merchandising, store operations,
                                         category management, etc. In the product-based service offerings, HCL’s
                                         JDA Practice has been both fast and extensive, and is offering much-
                                         needed flexibility, productivity, cost and resource efficiency to
                                         companies in managing their branching global businesses. The solutions
                                         are focused on implementation, migration, health checks, application
                                         support and maintenance, and integration and development around
                                         supply chain planning and retail solutions.




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Creating value across Supply Chain



                                         HCL works with industry specialists and customers through our Centers
                                         of Excellence in supply chain. Our involvement in the industry ranges
                                         from improving supply chain efficiency, streamlining store operations,




                                                                                                                                                                     Post Implementation Support
                                           Analysis                   Design                   Build                  Deploy                  Operate
                                                                    Prototyping                   CRP
                                                                                                                    Acceptance
                                              Gap Fit
                                                                                                                    Walkthrough
                                              Analysis               Technical               Integration                                        Support
                                                                      Design                   Testing
                                                                                                                    Deployment
                                          Requirement
                                                                                                                     & Training
                                          s Gathering
                                                                      Business              Unit Testing
                                                                                                                     Production
                                               Project                 Model                                           Set-up
                                              Planning                 Design             Customisation

                                                                                                           ement
                                                                                    Project Manag


                                         managing merchandise, maximizing customer loyalty to
                                         conceptualizing, building and managing eCommerce capabilities.

                                         Benefit led Implementation

                                         Application implementation for our customers is one of the key
                                         highlights of our supply chain practice. The implementation begins with
                                         a Business process analysis and reengineering, followed by the Design of
                                         Application which is aligned to the Business Processes. The aim of the
                                         implementation is to maximize usage of the standard features of the
                                         application, thereby restricting customization.

                                         HCL has done many green-field implementations of JDA applications,
                                         with the standard implementation methodology. We also shorten the
                                         implementation cycle using the Solution Accelerators and Frameworks
                                         developed by our Center of Excellence.

                                         De-risk Upgrade / Migration of JDA Solution

                                         The upgrade / migration process starts with understanding the business
                                         processes of the customer and then aligning them to the features of the
                                         application. The processes are classified as (a) Standard processes handled
                                         through the standard functionality of the application, including the
                                         extensions and (b) Non Standard processes, where some development is
                                         required to deliver the functionality. The objective is to keep
                                         customizations to the minimum. The migration framework includes the
                                         latest checks and analytics to ensure that the business processes are
                                         configured in the right manner. HCL has an experienced team to develop
                                         accelerators and frameworks that shorten the entire lifecycle of the
                                         implementation / upgrade.




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Creating value across Supply Chain



                                                                         JDA Supply Chain Planning & Optimization Upgrade Framework

                                                                   Upgrade from 7.1 to 7.7




                                                                                                                                                             y
                                                                                                                                                          log
                                          Demand Planning
                                                                   Forecasting Algorithms (FMCG/ Specialty Products/Retail)             ?




                                                                                                                                                        do
                                                                                                                                                   Me OE
                                                                                                                                                     tho
                                                                   Bulk New Product Introduction                                        ?




                                                                                                                                                      C
                                                                                                                                             gra JDA
                                                                   Demand Classification                                                ?




                                                                                                                                                de
                                                                   Demand Planning & Decision Support Workbench                         ?
                                                                                                                                                                       Functional
                                                                   Exception Graphs                                                     ?                               Upgrade




                                                                                                                                           Up
                                                                   Capture impact of events in Demand Planning                          ?
                                                                   Reconciliation top-down & bottom-up (Special Features)               ?
                                                                   Tune Algorithms Automatically (Based on History)                     ?


                                                                    Introduction of New Calendars for Supply Chain Planners             ?
                                                                    Smart & Informative Planning Workbench                              ?
                                                                                                                                                                 POC
                                                                    New Enhancement in Consumption of Demand                            ?

                                                                                                                                        ?
                                          Replenishment Planning




                                                                    Promotional SKUs (Supersession & Supplement Order introduction)

                                                                    Better Handling of Display & Presentation Quantity                  ?

                                                                    Constrained Planning to Aid Transport & Warehouse Management        ?

                                                                    Constrained Production Planning                                     ? Technical
                                                                    Statastical Safety Stock Process ( Automated SS Calculation)        ? Upgrade




                                                                                                                                                                                    nt
                                                                                                                                                                                me
                                                                    Order Pegging (Supply Demand Linking - For Planner's View)          ?




                                                                                                                                                                               ge
                                                                    Ability to specify ASAP shipping                                    ?




                                                                                                                                                                              na
                                                                                                                                                                           Ma
                                                                    Better Control for Planning & Management of Perishable Items        ?




                                                                                                                                                                          m
                                                                    Advance Features for Priority Based Demand Allocation               ?




                                                                                                                                                                        gra
                                                                    Fair-share Distribution on Equal Priorities of Orders               ?




                                                                                                                                                                   Pro
                                                                    Option to Allocate Reserved On Hand                                 ?
                                                                    More Constrained Based Replenishment Planning                       ?

                                                                                                        Pre-upgrade
                                                  Automated Migration
                                                       Scripts
                                                                                       Quick Data
                                                                                      Setup for POC
                                                                                                       & Post-upgrade
                                                                                                                             Training
                                                                                                                            Template
                                                                                                                                                      Accelerators
                                                                                                          checklist



                                         Solution Differentiator

                                         The “EZUpgrade™” framework is the perfect fit for the upgrade
                                         landscape as it incorporates the following capabilities:

                                         ?Besides being a technical upgrade, it increases the benefits for the
                                                customer by focusing on the business assessment, evaluation,
                                                business process redesigning, migration and program
                                                management etc.
                                         ?      It leverages the Upgrade Methodology, ensuring faster go-live
                                                and quicker return on investment on JDA upgrade projects.
                                         ?      It leverages the JDA Center of Excellence (CoE) repository of
                                                tools that facilitates seamless upgrade and minimizes business
                                                disruption.
                                         The “EZUpgrade™” framework offers the following benefits:

                                         ?Reduction of the upgrade cost and overall time span as compared
                                                                         to a standard approach
                                         ?Accurate time and cost estimates at an early stage of the upgrade




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Creating value across Supply Chain



                                         ?Estimation of the required effort is more accurate due to better
                                          visibility of the upgrade process
                                         ?Expedites the scoping and effort estimation
                                         ?Smooth execution of the upgrade project by leveraging
                                          Knowledge base, Checklists and best practices. User-friendly,
                                          easy-to-use templates and accelerator to reduce manual activities,
                                          thereby reducing the overall effort and time.
                                         ?Accelerator of Quick Feature list comparison between various
                                          versions of application which help to evaluate the application
                                          feature and function to be implemented.

                                         Some success stories:

                                         ?Migrated Manugistics Demand, Fulfillment, Collaborate,
                                          Delivery Manager for an Electrical Goods Retailer in UK from
                                          version 7.1 to 7.2.2.
                                         ?Migrated all the modules of Manugistics Demand, Fulfillment
                                          and Collaborate for a furniture retailer in Europe from version
                                          6.x and DPEE to 7.4.2

                                         Improve Supply Chain Performance by HCL Health-check / Package
                                         Evaluation

                                         Companies must maintain the IT infrastructure for sustained stability
                                         and to optimally support their business. In this context, HCL carries out
                                         periodic assessments of the implementation to enable maximum
                                         utilization.

                                         By leveraging leading retail industry best practices, functional expertise
                                         and extensive experience across the JDA suite of products, HCL enables
                                         retailers to transform their highest-value business processes, improve
                                         their business performance and maximize return on investment on the
                                         JDA suite. The following steps will help optimize the JDA system:

                                         ?Functional / technical assessment
                                         ?Tailored training
                                         ? module implementation
                                          New
                                         ?Bolt-on and enhancement
                                         ?System performance
                                         ?Re-implementation




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Creating value across Supply Chain




                                         HCL performs health checks to align JDA applications with business
                                         processes and to ensure the technical health of the applications. Below are
                                         a few examples:

                                         ?Performed health check for a large, Global food and
                                                       confectionary company in the United Sates.
                                         ?Evaluated the supply chain package between JDA and the Oracle
                                          suite of products for a chemical manufacturing company based in
                                          the United States.
                                         ?Evaluated the package selection process (in the context of total
                                          cost of ownership) and delivered a comprehensive report on
                                          product selection.

                                         Benefits:

                                         ?Health check recommendations to optimize batch processes
                                                       results in:
                                         ?Decrease in end-user wait time by 31%.
                                         ?Reduction in batch time by 12% - 15%.




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Creating value across Supply Chain



                                      Application Support and Maintenance (ASM)

                                      The JDA practice provides a mature onsite/offshore model for ASM. For
                                      example, HCL is currently supporting two of the largest Manugistics
                                      implementations in Europe. This covers support of Manugistics version
                                      7.2.2 and 7.4.2. In the past HCL has supported almost all the versions of
                                      JDA applications from version 6.x to version 7.5.


                                                                                               Integrated
                                                                                                Delivery
                                                                      Process                    Model
                                                                         &                                               Services
                                                                    Methodology


                                                                        SLA Management                      Tools, Technology
                                                                          Framework                                 &
                                                                              &                               Infrastructure
                                                                           Reporting


                                                                                           Engagement &
                                                                                              Project
                                                                                            Governance




                                      HCL brings proven onsite/offshore model and in-depth knowledge of
                                      JDA products has helped in major customizations.

                                      Benefits:

                                      ?Manugistics specific batch reporting tools that ensured 99% up-
                                                    time of batch processes.
                                      ?Developed reusable scripts that resulted in effort savings of ~225
                                       Man Hours.
                                      ?Adaptors on the JDA Manugistics suite of products – Demand
                                       Fulfillment, Market Manager and Collaborate.
                                      ?Developed Indian Taxation as shelf ware, standard interfaces to
                                       SAP/Oracle financials, and RAPID implementation framework
                                       to bring down TCO.
                                      ? an integration layer on Oracle PL/SQL for the Manugistics
                                       Built
                                       suites of applications for a furniture retailer in Europe. This was
                                       done by eliminating point-to-point interfaces and moving into a
                                       subscription/publish based integration layer.
                                      ?Supporting new developments on Manugistics version 7.x –
                                       Store Replenishment Planning, Days of the Week, Lost Sales,
                                       New Capacity Planning, Global Replenishment Planning, etc.




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Creating value across Supply Chain




                                      The HCL Advantage
                                      HCL is the first Indian IT vendor to forge a global strategic alliance with
                                      JDA in the space of professional services, product engineering, software
                                      license sales and GTM. HCL has formed a dedicated practice for JDA
                                      solutions, with more than 120+ consultants in domain, functional and
                                      technical areas. The practice is also backed by over 2500 retail consultants
                                      across various capabilities. HCL provides end-to-end consultancy,
                                      implementation, upgrade, rollout, training, development, maintenance
                                      and production support services on the JDA suite of products across
                                      geographies. The services are provided on JDA’s supply shain solutions –
                                      Manugistics and i2, Merchandise Management System (MMSi) and In-
                                      store solution (WinDSS).

                                      HCL and JDA both have a strong Asia Pacific focus and have executed a
                                      large number of green field implementations in India for big retailers like
                                      Shoppers’ Stop, Essar Group, Piramyd (IndiaBulls), Heritage, and House
                                      Full. Extensive experience in JDA has helped HCL serve various
                                      lifestyle, specialty retailers and CPG companies such as Dixon, IKEA,
                                      Timberland, GSI Commerce, Heinz and Reckitt Benckiser.

                                                     Solutions                              Subject Matter Expertise
                                           1
                                                   Demand
                                                  Management
                                                                                                                                                           J
                                                                                                                                                           D
                                                   Fulfillment                Implementation                                Product Version                A
                                           2
                                                  Management                  Services                                            Upgrade
                                           3
                                               Sales & Operations                                                                                          A
                                                    Planning
                                                                                                         Application                                       l
                                                                                                       Integrations &                                      l
                                           4     Merchandising
                                                                                                                                                           I
                                                                                                        Development                                        a
                                           5    Store Operations                                                                                           n
                                                                              Product                                            Application               c
                                                   Category
                                           6
                                                  Management
                                                                              Evaluation and                                      Support &                e
                                                                              Health Check                                      Maintenance
                                               Production Planning
                                           7
                                                  & Scheduling                                                                                                 D
                                                                                                                                                               o
                                                    Inventory                                                                                                  m
                                           8                                                                                                                   a
                                                   Optimization                              Hi-Tech                                             Tele          I
                                                                          Auto & Mfg                       Life Sciences     Retail & CPG
                                                                                                                                             Communication     n




                                      JDA Practice Highlights

                                      ? was the first Indian IT vendor to forger a global strategic
                                       HCL
                                       partnership with JDA in 2005 and this partnership is still running
                                       strong.
                                      ?Strong relationship with JDA in the space of professional
                                       services, product engineering, software license sales and GTM,
                                       worldwide.
                                      ? Indian IT vendor to have worked with JDA on product
                                       First
                                       engineering / development space – “E3-Pro”, Java POS, JDA
                                       MMS and bolt-on on Manugistics Fulfillment.



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Creating value across Supply Chain



                                      ?Trained Consultants in domain, function and technology
                                      ?Proven maturity to deliver optimized cost/value
                                                    implementation services
                                      ? realization of product features with a framework for Rapid
                                       Early
                                                    implementation
                                      ? movers in helping IKEA upgrade Manugistics version 6.x
                                       Early
                                       to 7.4.2. This happened within a few months after JDA launched
                                       Manugistics version 7.4.2.
                                      ?Library of extensive plug-in features: Indian Taxation, Integrated
                                       Customer Order Management, Serial Number Tracking, OTB,
                                       Serial Number Tracking, Financial Interfaces to SAP and
                                       Oracle, etc.
                                      ?Developed reusable components and an implementation
                                       framework that can be deployed to shorten the implementation
                                       life cycle and the upgrade project cycle.
                                      ?300+ person months of experience in development and
                                       enhancements on JDA products

                                      Business Benefits
                                      Through HCL’s proven methodology and deep industry knowledge,
                                      manufacturers and retailers can achieve the benefits of higher turnover,
                                      improved margin, optimized inventory and service levels and reduction
                                      in cost. Business benefits can be achieved in the following areas:

                                      ?Synchronized demand and supply plans to result in higher
                                       turnover.
                                      ?Consumer insights to determine the right products to be
                                       included in assortments, right pricing, and appropriate planning
                                       for different locations to improve the top-line and margin.
                                      ? ability to sense demand signals all the way to the store and
                                       The
                                       hence bring forecast accuracy improvements and better in stock
                                       levels.
                                      ?Optimized local market assortments for each retail store leading
                                       to a significant reduction of total supply network inventory and
                                       less out-of stock situations.
                                      ? real-time analysis capabilities for demand and supply that
                                       Near
                                       allows retailers to gauge impacts of trade promotions, consumer
                                       marketing activities, seasonality, and new products.

                                      Case Study:

                                      HCL helps a Global furniture retailer to revitalize its supply chain

                                      The Global furniture retailer, with an annual turnover of € 22.7 Bn, is the
                                      leading market player with more than 300 stores in 30+ countries. Its
                                      supply chain spans across geographies, with China, Poland, Italy and



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Creating value across Supply Chain



                                      Germany contributing to over 50% of the total procurement. The
                                      furniture retailer needed to balance the pressure on lead times and
                                      optimal inventory level while maintaining reasonable flexibility within
                                      the supply chain. This also translates into the need for effective demand
                                      and supply planning, and visibility across the supply chain.

                                      To support the complex supply chain planning process, the retailer used
                                      JDA Supply Chain suite of solutions, such as:

                                                                                                                 Global Requirement
                                          HCL helps customer in leveraging                                            Planning
                                             JDA/Manugistics Center of
                                          Excellence for their Supply Chain
                                                        area.                  Supply Chain Planning Information Exchange
                                                                               (Integration Layer on Oracle PL/SQL)
                                                                                                                                  Store Replenishment Planning



                                                                    Application Clustering
                                                                                                             Support for Demand & Supply Planning
                                                                                                             (Demand & Fulfillment v7.x)

                                                                                                                                           Benefits
                                                 Support & Maint of Ver 6.x                                                 • Development of scarce resources
                                                                                         Development & Support of V7.x         ? JDA Consultant (Product
                                                                                                                               Reduce
                                                                                         (Network Capacity Planning)           Company) dependency by 70%
                                                                                                                               ? of resource (50% of total
                                                                                                                               Lower cost
                                         IKEA COE Setup
                                                                                                                               are in-house trained)
                                                                                                                            •                               -7%
                                                                                                                            • Cross-skilling (Demand &
                                                                                                                              Fulfillment) and multi-skilling (DBA,
                                                                      Migration of 6.x to 7.x
                                                                                                                              Sys Admin, Technical)




                                      ? Demand
                                       JDA®
                                      ? Fulfillment
                                       JDA®
                                      ? Market Manager
                                       JDA®
                                      ? Monitor
                                       JDA®

                                      Business Challenges

                                      ?Support growing complexity in business and increasing
                                       operation pressures.
                                      ?Complex forecasting model - High demand fluctuations and no
                                       single forecast model for the entire supply chain.
                                      ?Changes required in DFU hierarchy to support new ways of
                                       working.
                                      ? of a platform to support higher business demands e.g. direct
                                       Lack
                                       deliveries, global replenishment planning and store
                                       collaboration.
                                      ?Introduction of new integration solutions to communicate with
                                       external legacy systems.
                                      ?Performance management and support challenges such as
                                       multiple legacy applications, longer response and execution
                                       times, and insufficient performance in batches.
                                      ?Dependency on high cost JDA resources




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Creating value across Supply Chain



                                      How HCL helped - Managed Services

                                      HCL established a Center of Excellence for the Global furniture retailer
                                      to provide services across the JDA suite. The Services were delivered in a
                                      global delivery model, with the offshore resources located in India. HCL
                                      took the ownership of the retaier’s JDA platform and provided the
                                      following services:

                                      ?In order to help address the growing complexity of the business
                                       and increasing operational pressures, HCL took up
                                       implementation, upgrade and migration of the JDA modules.
                                       helped address This enabled the furniture retailer to upgrade and
                                       re-implement the JDA Business Solution from an older version
                                       (thin client) to the latest web based solution.
                                      ?Support of JDA version 6.x Production environment and the
                                       new Production environment on 7.4.2 - HCL supported all the
                                       JDA environments and version for the retailer. Once the new
                                       version of JDA was into production, HCL ensured seamless
                                       takeover from the implementation team to support the new
                                       production environment.
                                      ?Development of integration layer for JDA interfaces - HCL was
                                       involved in moving the retailer from point to point interfaces to
                                       the development of integration layer for JDA applications. The
                                       integration layer - Supply Chain Planning Information Exchange
                                       with was developed using the Oracle platform, with data residing
                                       in Oracle database.
                                      ?Infrastructure set up and configuration - The retailer moved
                                       from Oracle 9i to Oracle 10g while upgrading JDA. HCL helped
                                       the retailer in comprehensive infrastructure set up for JDA from
                                       the development and testing environment to the production
                                       environment. HCL also took the ownership of setting up all the
                                       Oracle RAC environments at the retailer for JDA and helped
                                       them set up 4-6 node Oracle RAC clusters, both on Ethernet 10g
                                       and Infiniband.
                                      ?Application clustering and performance tuning - HCL provided
                                       services for performing application clustering for JDA
                                       applications and conducted performance tuning to ensure good
                                       application response times and better batch timings.
                                      ?Advanced development, testing services and support of the
                                       custom developed environments on the JDA Platform - The
                                       furniture retailer was using the JDA Platform as a tailored
                                       solution for ensuring capacity planning and advanced
                                       replenishment planning. HCL was involved in development of
                                       Global Replenishment and Store Replenishment Planning.
                                       These solutions provided testing services, from the Test Center
                                       set up on JDA Platform, and helped perform System Testing,
                                       Integration Testing and Performance Testing on every solution
                                       they developed.


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Creating value across Supply Chain



                                      Value Delivered

                                      The key business benefits of this engagement:

                                      ?Improved global view of the business which led to 5-7% forecast
                                                    accuracy in decision making
                                      ?Streamlined Demand Planning and Replenishment Planning
                                      ?Reduced risk of imbalance between commitment and demand
                                      ?Improved supply chain visibility and led to better collaboration –
                                                    movement towards CPFR
                                      ?% YoY productivity benefit through effective incident and
                                       10
                                                    problem management.
                                      ?Lower TCO as the project was executed in the Distributed
                                       (Onsite-Offshore) model
                                      ?Increased batch execution runtime by 20-30%
                                      ?Reduction in total incidents by 15% leading to reduced support
                                       expenses
                                      ?Reduction in the installation time from 30 man hours to 16 man
                                       hours with least manual intervention through automated JDA
                                       patch installation scripts created by HCL
                                      ?Expandable architecture, thus improving maintenance,
                                       scalability and leading to a more efficient system


                                      Real Results:
                                      ?Reduced TCO: Reduced cost of implementation, execution, and
                                       maintenance. This was possible due by aligning JDA centers of
                                       excellence, standardizing system landscapes and business
                                       processes; minimizing software installations, and following a
                                       strategy of managed, limited systems customization.
                                      ?Customer Focus: Ensuring active customer involvement with the
                                       core team, steering committee, and other stakeholders.
                                      ?Manage Performance: This was due to better insights into JDA
                                       product road maps and strategies. Standardizing system setups,
                                       minimizing the use of third-party applications and following
                                       standard upgrade plans also made this feasible.

                                      Conclusion

                                      The major trends and challenges we are witnessing across the industry
                                      have a deep impact on profits and revenues. While changes in the supply
                                      chain process will vary from company to company, they must freeze on
                                      these changes in advance and then implement them in stages. It is also
                                      important to remember that supply chain processes are interrelated,
                                      compelling companies to evaluate how optimization fits into their long-
                                      term solution architectures. An integrated process consisting of a



15                                    © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Creating value across Supply Chain



                                      customer driven responsive supply chain, shelf analytics, demand
                                      synchronization and collaborative forecasting and replenishment will
                                      maximize the revenue, eliminate stock outs with optimized inventory
                                      while reducing cost across the supply chain and improving ROI.

                                      About the authors




                                      Rakesh Churiwala
                                      Deputy General Manager

                                      Rakesh has over 19 years of experience in the retail domain and IT
                                      Consulting. Rakesh is an accomplished PMP practitioner and has been
                                      associated with the JDA practice, since its inception. He has been
                                      instrumental in forging the partnership with JDA, growing the practice
                                      and taking it to the Global level in a short period of time. He has served as
                                      program manager for many JDA projects and his focus over the last few
                                      years has been further developing the JDA relationship and capabilities.




                                      Sameer Nagpal
                                      Deputy General Manager

                                      Sameer Nagpal has over 15 years of leadership experience with Fortune
                                      100 companies in the area of Supply Chain Planning. Sameer is heading
                                      the JDA Practice at HCL and involved in the Delivery to many Key
                                      Accounts in the JDA Area. Sameer is season speaker and many of his
                                      papers are published in India and International forums. Sameer is a
                                      certified Supply Chain Professional (APICS – CSCP). Sameer is an
                                      Engineer in Production and Industrial Engineering and MBA in Supply
                                      Chain Management from NITIE, India.




16                                    © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
CUSTOM APPLICATION
SERVICES

ENGINEERING AND
R&D SERVICES



ENTERPRISE APPLICATION
SERVICES



ENTERPRISE
TRANSFORMATION SERVICES



IT INFRASTRUCTURE
MANAGEMENT
                          ABOUT HCL
                          HCL Technologies
BUSINESS PROCESS          HCL Technologies is a leading global IT services company, working with
OUTSOURCING               clients in the areas that impact and redefine the core of their businesses.
                          Since its inception into the global landscape after its IPO in 1999, HCL
                          focuses on ‘transformational outsourcing’, underlined by innovation and
                          value creation, and offers integrated portfolio of services including
                          software-led IT solutions, remote infrastructure management,
                          engineering and R&D services and BPO. HCL leverages its extensive
                          global offshore infrastructure and network of offices in 26 countries to
                          provide holistic, multi-service delivery in key industry verticals including
                          Financial Services, Manufacturing, Consumer Services, Public Services
                          and Healthcare. HCL takes pride in its philosophy of ‘Employee First,
                          Customer Second’ which empowers our 83,076 transformers to create a
                          real value for the customers. HCL Technologies, along with its
                          subsidiaries, has reported consolidated revenues of US$ 3.9 billion
                          (18,334 crores), as on 31 December 2011 (on LTM basis). For more
                          information, please visit www.hcltech.com

                          About HCL Enterprise
                          HCL is a $6 billion leading global technology and IT enterprise
                          comprising two companies listed in India - HCL Technologies and HCL
                          Infosystems. Founded in 1976, HCL is one of India's original IT garage
                          start-ups. A pioneer of modern computing, HCL is a global
                          transformational enterprise today. Its range of offerings includes product
                          engineering, custom & package applications, BPO, IT infrastructure
                          services, IT hardware, systems integration, and distribution of
                          information and communications technology (ICT) products across a
                          wide range of focused industry verticals. The HCL team consists of over
                          90,000 professionals of diverse nationalities, who operate from 31
                          countries including over 500 points of presence in India. HCL has
                          partnerships with several leading Global 1000 firms, including leading IT
                          and Technology firms. For more information, please visit www.hcl.com


                          © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.

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HCLT Whitepaper: Responsive Efficient Customer- focused Creating Value Across The Supply Chain

  • 1. Authors Rakesh Churiwala Sameer Nagpal FEBRUARY 2012
  • 2. Creating value across Supply Chain Abstract The consumer services industry is changing fast and becoming a lot more competitive. Rapid technology changes combined with a hyper connected and evolving consumer, means that organizations need to be able to respond to these changes fast, and ensure a more dynamic decision making process. One of the key strategies organizations will need to adopt to survive and flourish in this environment, is to optimize supply chain planning to maximize return on investment. An effective supply chain strategy will be imperative to not only address market challenges but also proactively meet fluctuations within the demand and supply chain. At HCL, we understand these challenges and the risks and provide solutions that enable Retail organizations to accelerate revenues and profits. By leveraging in-depth industry knowledge and insights, HCL provides end-to-end solutions that optimize processes across critical business functions such as merchandise planning, demand planning and replenishment. In addition, our solutions can be integrated with the core business processes to ensure that the business stays in line with the customer’s need. Some of the key industry trends in Supply Chain: ?Customer-driven responsive supply shain ? connected supply chain Shelf ? analytics Shelf ?Demand synchronization ?Collaboration on forecasting and store replenishment These will be looked at in detail later. Target Audience This whitepaper focuses on the key industry trends and challenges and how HCL’s service offerings delivered through the Supply Chain Center of Excellence helps address these changes. 2 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 3. Creating value across Supply Chain This paper is targeted at professionals across the consumer services, supply chain, logistics and manufacturing industry such as: ?Operations/ retail business managers ?Business and/or technology consultants ?IT professionals Changing Landscape Increasing globalization of the supply chain and shortening product lifecycles means organizations will have to optimize their supply chain planning to maximize the return on investment. Getting the right product, at the right place, at the right time, and at the right price has become a basic necessity. Apart from these business challenges, organizations today are struggling to keep IT costs under control. Adding to this challenge is the lack of standards in a complex, highly customized IT environment, which leads to integration difficulties and makes any additional development cumbersome and expensive. The critical risks organizations face today: ?Product complexity ?Shortening of product life cycles ?Extended supply chain ?Managing multi-channel operations ?Process complexity ? demand volatility High ?Increasing lead times ? sales and brand erosion due to stock outs Lost ?Highly competitive and margin sensitive industry It is vital to respond to these challenges and proactively meet fluctuations within the demand and supply chain. Organizations can tackle supply chain challenges with the following strategies: ?Flexibility, scalability and integrated supply chain processes to manage the consumer-centric global supply Chain. ?Optimizing decision making processes across the supply chain by addressing the dynamic nature of demand, sub-optimized plans, and sub-standard customer service levels. ?Optimizing distribution and production planning with an enhanced Sales & Operation Plan (S&OP). ?Collaborative visibility into all critical functional areas for comprehensive optimization of processes ?Planning that is integrated and executable with total demand visibility. 3 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 4. Creating value across Supply Chain ?Leverage and extend the value of the current transaction system and seamless integration of the supply chain solution with the ERP or legacy system. ?Improve the customer service level, order fill rate, inventory availability and asset utilization. ?Decrease safety stock and overstock to optimize inventory and carrying cost Key trends across the supply chain and new strategies to keep pace: Customer Driven Responsive Supply Chain HCL offers a complete supply chain planning and optimization specialized suite with the right capabilities to enable a customer driven value chain. A customer driven supply chain begins with the right insights into the buying behavior. It also provides one view of demand to drive every single plan within an enterprise and across the value chain, ultimately enabling synchronized decisions by all stakeholders from manufacturing, distribution to store operations. Integrated Business Planning Collaboration Logistics Demand Supply One Synchronized View Collaboration, Visibility and Monitoring ERP Shelf Connected Supply Chain The objective of collaborative planning at the shelf for both retailers and manufacturers is to serve the consumer at an optimal cost. This process calls for the retailer to conduct macro-level floor planning to determine the amount of shelf space required by supplier. This will help in quick responses to consumer choices at the shelf and across all buying channels. A shelf connected supply chain allows both manufacturers and retailers to maximize revenue, eliminate stock outs while removing any additional cost across the supply chain. To do this effectively, the industry needs a new breed of technology that can be scaled up cost- effectively to handle vast amounts of data across the value chain to drive accurate decision making. Organizations today are taking on new 4 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 5. Creating value across Supply Chain processes that connect the virtual shelf to the entire supply chain, enabling them to develop localized assortments, shorten cycle times, set profitable flow strategies, reduce inventories, trim costs and improve shelf availability. Collaboration on Forecasting and Store Replenishment Strategies Retailers frequently come across large gaps in order patterns resulting from their decision to change service levels, safety-stock settings, lead times, transportation modes and order parameters. Collaborating around replenishment policy and store-level forecasts allows both the supplier and retailer to better manage merchandise flow. Shelf Analytics Retailers today are not just leveraging historic data, but are adopting new practices and solutions to analyze the shelf with an eye on the future. Root cause analysis to identify phantom/ghost inventory, inappropriate ordering parameters, inaccurate demand forecasts, insufficient shelf- space allocation and poor in-store execution is conducted to identify which items are likely to be out of stock. Leveraging this information, manufacturers can collaborate with retailers to adjust forecasting and replenishment parameters, and correct inventory inaccuracies. HCL Offering HCL’s JDA Practice is a hub for knowledge sharing and capability building in domain areas such as retail, CPG, manufacturing, pharmaceuticals and automobile industries and for specific JDA product suites around supply chain planning, merchandising, store operations, category management, etc. In the product-based service offerings, HCL’s JDA Practice has been both fast and extensive, and is offering much- needed flexibility, productivity, cost and resource efficiency to companies in managing their branching global businesses. The solutions are focused on implementation, migration, health checks, application support and maintenance, and integration and development around supply chain planning and retail solutions. 5 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 6. Creating value across Supply Chain HCL works with industry specialists and customers through our Centers of Excellence in supply chain. Our involvement in the industry ranges from improving supply chain efficiency, streamlining store operations, Post Implementation Support Analysis Design Build Deploy Operate Prototyping CRP Acceptance Gap Fit Walkthrough Analysis Technical Integration Support Design Testing Deployment Requirement & Training s Gathering Business Unit Testing Production Project Model Set-up Planning Design Customisation ement Project Manag managing merchandise, maximizing customer loyalty to conceptualizing, building and managing eCommerce capabilities. Benefit led Implementation Application implementation for our customers is one of the key highlights of our supply chain practice. The implementation begins with a Business process analysis and reengineering, followed by the Design of Application which is aligned to the Business Processes. The aim of the implementation is to maximize usage of the standard features of the application, thereby restricting customization. HCL has done many green-field implementations of JDA applications, with the standard implementation methodology. We also shorten the implementation cycle using the Solution Accelerators and Frameworks developed by our Center of Excellence. De-risk Upgrade / Migration of JDA Solution The upgrade / migration process starts with understanding the business processes of the customer and then aligning them to the features of the application. The processes are classified as (a) Standard processes handled through the standard functionality of the application, including the extensions and (b) Non Standard processes, where some development is required to deliver the functionality. The objective is to keep customizations to the minimum. The migration framework includes the latest checks and analytics to ensure that the business processes are configured in the right manner. HCL has an experienced team to develop accelerators and frameworks that shorten the entire lifecycle of the implementation / upgrade. 6 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 7. Creating value across Supply Chain JDA Supply Chain Planning & Optimization Upgrade Framework Upgrade from 7.1 to 7.7 y log Demand Planning Forecasting Algorithms (FMCG/ Specialty Products/Retail) ? do Me OE tho Bulk New Product Introduction ? C gra JDA Demand Classification ? de Demand Planning & Decision Support Workbench ? Functional Exception Graphs ? Upgrade Up Capture impact of events in Demand Planning ? Reconciliation top-down & bottom-up (Special Features) ? Tune Algorithms Automatically (Based on History) ? Introduction of New Calendars for Supply Chain Planners ? Smart & Informative Planning Workbench ? POC New Enhancement in Consumption of Demand ? ? Replenishment Planning Promotional SKUs (Supersession & Supplement Order introduction) Better Handling of Display & Presentation Quantity ? Constrained Planning to Aid Transport & Warehouse Management ? Constrained Production Planning ? Technical Statastical Safety Stock Process ( Automated SS Calculation) ? Upgrade nt me Order Pegging (Supply Demand Linking - For Planner's View) ? ge Ability to specify ASAP shipping ? na Ma Better Control for Planning & Management of Perishable Items ? m Advance Features for Priority Based Demand Allocation ? gra Fair-share Distribution on Equal Priorities of Orders ? Pro Option to Allocate Reserved On Hand ? More Constrained Based Replenishment Planning ? Pre-upgrade Automated Migration Scripts Quick Data Setup for POC & Post-upgrade Training Template Accelerators checklist Solution Differentiator The “EZUpgrade™” framework is the perfect fit for the upgrade landscape as it incorporates the following capabilities: ?Besides being a technical upgrade, it increases the benefits for the customer by focusing on the business assessment, evaluation, business process redesigning, migration and program management etc. ? It leverages the Upgrade Methodology, ensuring faster go-live and quicker return on investment on JDA upgrade projects. ? It leverages the JDA Center of Excellence (CoE) repository of tools that facilitates seamless upgrade and minimizes business disruption. The “EZUpgrade™” framework offers the following benefits: ?Reduction of the upgrade cost and overall time span as compared to a standard approach ?Accurate time and cost estimates at an early stage of the upgrade 7 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 8. Creating value across Supply Chain ?Estimation of the required effort is more accurate due to better visibility of the upgrade process ?Expedites the scoping and effort estimation ?Smooth execution of the upgrade project by leveraging Knowledge base, Checklists and best practices. User-friendly, easy-to-use templates and accelerator to reduce manual activities, thereby reducing the overall effort and time. ?Accelerator of Quick Feature list comparison between various versions of application which help to evaluate the application feature and function to be implemented. Some success stories: ?Migrated Manugistics Demand, Fulfillment, Collaborate, Delivery Manager for an Electrical Goods Retailer in UK from version 7.1 to 7.2.2. ?Migrated all the modules of Manugistics Demand, Fulfillment and Collaborate for a furniture retailer in Europe from version 6.x and DPEE to 7.4.2 Improve Supply Chain Performance by HCL Health-check / Package Evaluation Companies must maintain the IT infrastructure for sustained stability and to optimally support their business. In this context, HCL carries out periodic assessments of the implementation to enable maximum utilization. By leveraging leading retail industry best practices, functional expertise and extensive experience across the JDA suite of products, HCL enables retailers to transform their highest-value business processes, improve their business performance and maximize return on investment on the JDA suite. The following steps will help optimize the JDA system: ?Functional / technical assessment ?Tailored training ? module implementation New ?Bolt-on and enhancement ?System performance ?Re-implementation 8 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 9. Creating value across Supply Chain HCL performs health checks to align JDA applications with business processes and to ensure the technical health of the applications. Below are a few examples: ?Performed health check for a large, Global food and confectionary company in the United Sates. ?Evaluated the supply chain package between JDA and the Oracle suite of products for a chemical manufacturing company based in the United States. ?Evaluated the package selection process (in the context of total cost of ownership) and delivered a comprehensive report on product selection. Benefits: ?Health check recommendations to optimize batch processes results in: ?Decrease in end-user wait time by 31%. ?Reduction in batch time by 12% - 15%. 9 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 10. Creating value across Supply Chain Application Support and Maintenance (ASM) The JDA practice provides a mature onsite/offshore model for ASM. For example, HCL is currently supporting two of the largest Manugistics implementations in Europe. This covers support of Manugistics version 7.2.2 and 7.4.2. In the past HCL has supported almost all the versions of JDA applications from version 6.x to version 7.5. Integrated Delivery Process Model & Services Methodology SLA Management Tools, Technology Framework & & Infrastructure Reporting Engagement & Project Governance HCL brings proven onsite/offshore model and in-depth knowledge of JDA products has helped in major customizations. Benefits: ?Manugistics specific batch reporting tools that ensured 99% up- time of batch processes. ?Developed reusable scripts that resulted in effort savings of ~225 Man Hours. ?Adaptors on the JDA Manugistics suite of products – Demand Fulfillment, Market Manager and Collaborate. ?Developed Indian Taxation as shelf ware, standard interfaces to SAP/Oracle financials, and RAPID implementation framework to bring down TCO. ? an integration layer on Oracle PL/SQL for the Manugistics Built suites of applications for a furniture retailer in Europe. This was done by eliminating point-to-point interfaces and moving into a subscription/publish based integration layer. ?Supporting new developments on Manugistics version 7.x – Store Replenishment Planning, Days of the Week, Lost Sales, New Capacity Planning, Global Replenishment Planning, etc. 10 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 11. Creating value across Supply Chain The HCL Advantage HCL is the first Indian IT vendor to forge a global strategic alliance with JDA in the space of professional services, product engineering, software license sales and GTM. HCL has formed a dedicated practice for JDA solutions, with more than 120+ consultants in domain, functional and technical areas. The practice is also backed by over 2500 retail consultants across various capabilities. HCL provides end-to-end consultancy, implementation, upgrade, rollout, training, development, maintenance and production support services on the JDA suite of products across geographies. The services are provided on JDA’s supply shain solutions – Manugistics and i2, Merchandise Management System (MMSi) and In- store solution (WinDSS). HCL and JDA both have a strong Asia Pacific focus and have executed a large number of green field implementations in India for big retailers like Shoppers’ Stop, Essar Group, Piramyd (IndiaBulls), Heritage, and House Full. Extensive experience in JDA has helped HCL serve various lifestyle, specialty retailers and CPG companies such as Dixon, IKEA, Timberland, GSI Commerce, Heinz and Reckitt Benckiser. Solutions Subject Matter Expertise 1 Demand Management J D Fulfillment Implementation Product Version A 2 Management Services Upgrade 3 Sales & Operations A Planning Application l Integrations & l 4 Merchandising I Development a 5 Store Operations n Product Application c Category 6 Management Evaluation and Support & e Health Check Maintenance Production Planning 7 & Scheduling D o Inventory m 8 a Optimization Hi-Tech Tele I Auto & Mfg Life Sciences Retail & CPG Communication n JDA Practice Highlights ? was the first Indian IT vendor to forger a global strategic HCL partnership with JDA in 2005 and this partnership is still running strong. ?Strong relationship with JDA in the space of professional services, product engineering, software license sales and GTM, worldwide. ? Indian IT vendor to have worked with JDA on product First engineering / development space – “E3-Pro”, Java POS, JDA MMS and bolt-on on Manugistics Fulfillment. 11 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 12. Creating value across Supply Chain ?Trained Consultants in domain, function and technology ?Proven maturity to deliver optimized cost/value implementation services ? realization of product features with a framework for Rapid Early implementation ? movers in helping IKEA upgrade Manugistics version 6.x Early to 7.4.2. This happened within a few months after JDA launched Manugistics version 7.4.2. ?Library of extensive plug-in features: Indian Taxation, Integrated Customer Order Management, Serial Number Tracking, OTB, Serial Number Tracking, Financial Interfaces to SAP and Oracle, etc. ?Developed reusable components and an implementation framework that can be deployed to shorten the implementation life cycle and the upgrade project cycle. ?300+ person months of experience in development and enhancements on JDA products Business Benefits Through HCL’s proven methodology and deep industry knowledge, manufacturers and retailers can achieve the benefits of higher turnover, improved margin, optimized inventory and service levels and reduction in cost. Business benefits can be achieved in the following areas: ?Synchronized demand and supply plans to result in higher turnover. ?Consumer insights to determine the right products to be included in assortments, right pricing, and appropriate planning for different locations to improve the top-line and margin. ? ability to sense demand signals all the way to the store and The hence bring forecast accuracy improvements and better in stock levels. ?Optimized local market assortments for each retail store leading to a significant reduction of total supply network inventory and less out-of stock situations. ? real-time analysis capabilities for demand and supply that Near allows retailers to gauge impacts of trade promotions, consumer marketing activities, seasonality, and new products. Case Study: HCL helps a Global furniture retailer to revitalize its supply chain The Global furniture retailer, with an annual turnover of € 22.7 Bn, is the leading market player with more than 300 stores in 30+ countries. Its supply chain spans across geographies, with China, Poland, Italy and 12 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 13. Creating value across Supply Chain Germany contributing to over 50% of the total procurement. The furniture retailer needed to balance the pressure on lead times and optimal inventory level while maintaining reasonable flexibility within the supply chain. This also translates into the need for effective demand and supply planning, and visibility across the supply chain. To support the complex supply chain planning process, the retailer used JDA Supply Chain suite of solutions, such as: Global Requirement HCL helps customer in leveraging Planning JDA/Manugistics Center of Excellence for their Supply Chain area. Supply Chain Planning Information Exchange (Integration Layer on Oracle PL/SQL) Store Replenishment Planning Application Clustering Support for Demand & Supply Planning (Demand & Fulfillment v7.x) Benefits Support & Maint of Ver 6.x • Development of scarce resources Development & Support of V7.x ? JDA Consultant (Product Reduce (Network Capacity Planning) Company) dependency by 70% ? of resource (50% of total Lower cost IKEA COE Setup are in-house trained) • -7% • Cross-skilling (Demand & Fulfillment) and multi-skilling (DBA, Migration of 6.x to 7.x Sys Admin, Technical) ? Demand JDA® ? Fulfillment JDA® ? Market Manager JDA® ? Monitor JDA® Business Challenges ?Support growing complexity in business and increasing operation pressures. ?Complex forecasting model - High demand fluctuations and no single forecast model for the entire supply chain. ?Changes required in DFU hierarchy to support new ways of working. ? of a platform to support higher business demands e.g. direct Lack deliveries, global replenishment planning and store collaboration. ?Introduction of new integration solutions to communicate with external legacy systems. ?Performance management and support challenges such as multiple legacy applications, longer response and execution times, and insufficient performance in batches. ?Dependency on high cost JDA resources 13 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 14. Creating value across Supply Chain How HCL helped - Managed Services HCL established a Center of Excellence for the Global furniture retailer to provide services across the JDA suite. The Services were delivered in a global delivery model, with the offshore resources located in India. HCL took the ownership of the retaier’s JDA platform and provided the following services: ?In order to help address the growing complexity of the business and increasing operational pressures, HCL took up implementation, upgrade and migration of the JDA modules. helped address This enabled the furniture retailer to upgrade and re-implement the JDA Business Solution from an older version (thin client) to the latest web based solution. ?Support of JDA version 6.x Production environment and the new Production environment on 7.4.2 - HCL supported all the JDA environments and version for the retailer. Once the new version of JDA was into production, HCL ensured seamless takeover from the implementation team to support the new production environment. ?Development of integration layer for JDA interfaces - HCL was involved in moving the retailer from point to point interfaces to the development of integration layer for JDA applications. The integration layer - Supply Chain Planning Information Exchange with was developed using the Oracle platform, with data residing in Oracle database. ?Infrastructure set up and configuration - The retailer moved from Oracle 9i to Oracle 10g while upgrading JDA. HCL helped the retailer in comprehensive infrastructure set up for JDA from the development and testing environment to the production environment. HCL also took the ownership of setting up all the Oracle RAC environments at the retailer for JDA and helped them set up 4-6 node Oracle RAC clusters, both on Ethernet 10g and Infiniband. ?Application clustering and performance tuning - HCL provided services for performing application clustering for JDA applications and conducted performance tuning to ensure good application response times and better batch timings. ?Advanced development, testing services and support of the custom developed environments on the JDA Platform - The furniture retailer was using the JDA Platform as a tailored solution for ensuring capacity planning and advanced replenishment planning. HCL was involved in development of Global Replenishment and Store Replenishment Planning. These solutions provided testing services, from the Test Center set up on JDA Platform, and helped perform System Testing, Integration Testing and Performance Testing on every solution they developed. 14 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 15. Creating value across Supply Chain Value Delivered The key business benefits of this engagement: ?Improved global view of the business which led to 5-7% forecast accuracy in decision making ?Streamlined Demand Planning and Replenishment Planning ?Reduced risk of imbalance between commitment and demand ?Improved supply chain visibility and led to better collaboration – movement towards CPFR ?% YoY productivity benefit through effective incident and 10 problem management. ?Lower TCO as the project was executed in the Distributed (Onsite-Offshore) model ?Increased batch execution runtime by 20-30% ?Reduction in total incidents by 15% leading to reduced support expenses ?Reduction in the installation time from 30 man hours to 16 man hours with least manual intervention through automated JDA patch installation scripts created by HCL ?Expandable architecture, thus improving maintenance, scalability and leading to a more efficient system Real Results: ?Reduced TCO: Reduced cost of implementation, execution, and maintenance. This was possible due by aligning JDA centers of excellence, standardizing system landscapes and business processes; minimizing software installations, and following a strategy of managed, limited systems customization. ?Customer Focus: Ensuring active customer involvement with the core team, steering committee, and other stakeholders. ?Manage Performance: This was due to better insights into JDA product road maps and strategies. Standardizing system setups, minimizing the use of third-party applications and following standard upgrade plans also made this feasible. Conclusion The major trends and challenges we are witnessing across the industry have a deep impact on profits and revenues. While changes in the supply chain process will vary from company to company, they must freeze on these changes in advance and then implement them in stages. It is also important to remember that supply chain processes are interrelated, compelling companies to evaluate how optimization fits into their long- term solution architectures. An integrated process consisting of a 15 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 16. Creating value across Supply Chain customer driven responsive supply chain, shelf analytics, demand synchronization and collaborative forecasting and replenishment will maximize the revenue, eliminate stock outs with optimized inventory while reducing cost across the supply chain and improving ROI. About the authors Rakesh Churiwala Deputy General Manager Rakesh has over 19 years of experience in the retail domain and IT Consulting. Rakesh is an accomplished PMP practitioner and has been associated with the JDA practice, since its inception. He has been instrumental in forging the partnership with JDA, growing the practice and taking it to the Global level in a short period of time. He has served as program manager for many JDA projects and his focus over the last few years has been further developing the JDA relationship and capabilities. Sameer Nagpal Deputy General Manager Sameer Nagpal has over 15 years of leadership experience with Fortune 100 companies in the area of Supply Chain Planning. Sameer is heading the JDA Practice at HCL and involved in the Delivery to many Key Accounts in the JDA Area. Sameer is season speaker and many of his papers are published in India and International forums. Sameer is a certified Supply Chain Professional (APICS – CSCP). Sameer is an Engineer in Production and Industrial Engineering and MBA in Supply Chain Management from NITIE, India. 16 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 17. CUSTOM APPLICATION SERVICES ENGINEERING AND R&D SERVICES ENTERPRISE APPLICATION SERVICES ENTERPRISE TRANSFORMATION SERVICES IT INFRASTRUCTURE MANAGEMENT ABOUT HCL HCL Technologies BUSINESS PROCESS HCL Technologies is a leading global IT services company, working with OUTSOURCING clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on ‘transformational outsourcing’, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of ‘Employee First, Customer Second’ which empowers our 83,076 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, has reported consolidated revenues of US$ 3.9 billion (18,334 crores), as on 31 December 2011 (on LTM basis). For more information, please visit www.hcltech.com About HCL Enterprise HCL is a $6 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 90,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. HCL has partnerships with several leading Global 1000 firms, including leading IT and Technology firms. For more information, please visit www.hcl.com © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.