JDA Boosts Omnichannel Supply Chain Value With IBM

JDA Software Group announced yesterday (Aug. 19) that it has integrated its JDA Intelligent Fulfillment and Labor Productivity solutions with Order Management solutions from IBM Commerce — making it easier to tap into the value of the omnichannel supply chain.

This technology collaboration is designed at providing businesses with the ability to process orders across sales channels in real time, which can in turn bring about a better customer buying experience.

“The convergence of physical and digital retail has changed how you need to deliver on the customer buying experience. The customer is the new boss, and they want their product, at their moment, at their price, delivered their way. As a result, companies need to offer personalized, differentiated customer experience while delivering the order as promised,” noted Wayne Usie, senior vice president of retail at JDA. “In the past, retailers made fulfillment decisions without a holistic view of inventory, labor and transportation availability and costs and have historically sacrificed profit margins to deliver customer satisfaction. With this release, we have bridged that gap and provided the foundation to solve this problem by integrating with IBM to provide the necessary visibility in execution to labor and demand impacts — allowing companies to begin improving profitability with each omnichannel order.”

The real-time feature of the integration is the real selling point of the deal, specifically because it enables shoppers to better utilize the omnichannel offerings that are being offered by stores. By streamlining the order fulfillment process, it can also help provide better value across the supply chain.

“Many retailers force shoppers to choose between convenience, product selection and price as they shop across channels. In fact, some shoppers that select the ‘pick up in store’ option might need to visit multiple store locations to fulfill their entire order, which ultimately tarnishes their brand experience,” said John Mesberg, general manager of offering management and strategy at IBM Commerce. “By leveraging the combined expertise of IBM and JDA, retailers can present order fulfillment options in real time that delight demanding customers and ensure that a great experience lasts from the first click to when they have their purchase in hand.”

Usie also offered some key stats about why most companies aren’t fully utilizing the value of the omnichannel supply chain, saying that most merchants don’t think about the cost of a specific product across the entire process.

“Today, only 16 percent of companies are able to serve multiple channels profitably, in part because their order fulfillment systems are not integrated with other key systems. Most retailers cannot see the true cost of fulfilling a specific order, including inventory, labor and transportation costs,” said Usie. “For the first time, JDA’s collaboration with IBM balances a customized buying experience for shoppers with a realistic cost-to-serve model. This unique capability creates an opportunity to balance high levels of service with high levels of profitability, even in today’s challenging omnichannel environment.”

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