Lowe’s leans on new IBM and JDA offering

IBM and JDA Software Group have developed an integrated omnichannel supply chain solution to help retailers address what today is arguably the greatest operational challenge facing most retailers.



The two companies said they developed a holistic approach to addressing the omnichannel execution challenge facing retailers by combining several of their products. Together, IBM and JDA will provide an integrated omnichannel supply chain view that enables businesses to make smarter sourcing decisions in real time and give their customers the best buying experience possible, according to the companies.



For example, JDA Intelligent Fulfillment and Labor Productivity solutions will be combined with IBM Commerce and Order Management solutions to reveal the true cost of fulfilling an order. The solution will factor in inventory and labor costs so that businesses can more responsively adjust inventory and resource allocations and execute decisions that meet and exceed customer expectations while also serving their bottom line, according to the companies.



"By partnering to deliver this joint offering, JDA and IBM are enabling Lowe's to deliver exceptional omnichannel fulfillment services, which gives our customers more flexible options to shop with us," said Robin Bornkamp, Lowe's VP of inventory and demand planning.



According to IBM and JDA, retailers, wholesalers and manufacturers today are challenged to meet the demands of empowered consumers who demand the right product when they want it at the best price through their channel of choice. As more and more consumers demand advanced delivery methods such as "buy online and pick-up in store," businesses are under increasing pressure to offer these flexible options across more channels in order to meet their customer's expectations. Without a dynamic view into their complete supply chain picture, businesses are forced to make snap decisions based on static information resulting in inefficient fulfillment processes, shipping methods and inventory positions.



This new initiative between JDA and IBM will provide a holistic approach to solving this problem by synchronizing comprehensive order capture and order management with precision retail planning, efficient labor productivity and intelligent fulfillment, according to the companies.



"The JDA and IBM initiative fills a massive void in the marketplace. Retailers need to become much more sophisticated and intelligent about how they source product for omnichannel fulfillment,” said Wayne Usie, SVP of retail at JDA Software. “Today there is far too much guess work, too many static policies, and no intelligence applied to the process. This landmark initiative cracks the code on intelligent sourcing, simultaneously allowing our customers to factor in supply chain planning and execution status, planned events like promotions and markdowns, and labor availability at the point of sale to maximize profits and customer satisfaction."



"Whether they shop online, in store or on a device, consumers expect to have their product orders fulfilled exactly how they want it and at the lowest price without exceptions," said Charles Chu, vp of B2B and commerce at IBM. "Any business that ignores these changing expectations does so at the expense of customer loyalty and revenue growth. Now with this collaboration between JDA Software and IBM, businesses will be able to seamlessly orchestrate a superior order fulfillment process that provides real value to the customer while eliminating costs and inefficiencies."



Delivered either on premise or in the cloud via SoftLayer, an IBM company, the solution will be part of IBM's existing portfolio of over 110 SaaS applications and is expected to be available by late spring 2015.