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Puma chooses JDA software for supply chain management

Retailer looks to streamline operations in drive towards greater profitability

Puma has chosen supply chain software provider JDA to streamline product delivery throughout its workforce.

The systems overhaul will involve using JDA's Allocation supply chain management software to centralise the control of product distribution to Puma's retail stores.

Puma's range of clothes, trainers and accessories are distributed to more than 120 countries, coordinated by headquarters in London, Boston and Herzogenaurach in Germany. Puma has a workforce of 11,000 staff worldwide.

The retail company said that the JDA software will enable greater automation of product allocation, with retail store systems providing inventory level updates to centralised JDA Allocation analytics software.

The Allocation software will give a clearer oversight of inventory levels, with greater accuracy of restocking for each store, down to individual sizes of each product. Previously a set number of items would be sent out to each store.

Through use of JDA's supply chain software cost reductions will be enabled by decreasing manual workload involved in distribution, as well as preventing markdowns of item costs due to overstocking. Greater supply accuracy will also mean a decrease in the need for transfers between stores.

"JDA Allocation is one of the most robust solutions in the marketplace and we believe it will help us to quickly and effectively optimise store-specific allocations across our entire retail enterprise," said Stefan Meyrat, Head of Global Retail, Puma Retail.

"The JDA Allocation implementation will serve as the first milestone in our multi-phased plan to achieve globally integrated planning and assortment management to allocate our Performance and Lifestyle collections to the right store at the right time."

"We are delighted that an industry leader like Puma Retail has selected JDA Allocation based on the business benefits it will deliver," said Mark Morgan, regional vice president EMEA, JDA Software.

Puma is currently in the process of reducing the number of different products being delivered to stores while increasing volumes, as part of wider moves to restructure its business and regain profitability.

The company announced in its financial results today that operating income fell to 290.7 million (£250.4 million) in 2012, from 333.2 million (£287 million) the previous year.

Further investments in infrastructure are expected to be made in 2013, with the company expected to wider European rollout of an ERP system which went live in Iberia in 2012.

JDA Software is also used by Marks & Spencer to manage its supply chain and increase efficiency. JDA Software was recently acquired by ERP and supply chain software specialist Red Prairie in a $1.9 billion deal.


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