The Right Fit: Famous Footwear Leverages JDA Software Solutions to Increase Sales by 6.3%, Boost Same-Store Sales by 2.5% and Improve Operating Earnings by 11.2%

The Right Fit: Famous Footwear Leverages JDA Software Solutions to Increase Sales by 6.3%, Boost Same-Store Sales by 2.5% and Improve Operating Earnings by 11.2%

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  Case Study The RightFit Famous Footwear Leverages JDA Software Solutions to Increase Sales by 6.3%, Boost Same-Store Sales by 2.5% and Improve Operating Earnings by 11.2% Famous Footwear Fast Facts Business Challenge Famous Footwear needed to find a more efficient and effective way to Industry deliver a fresh and precise flow of new styles to each store. Additionally, the Footwear Retailer company realized that it had to capture and respond to the variation and diversity that is driven by demographics, climate and region. Headquarters Madison, Wisconsin Business Solutions Description Famous Footwear, a division of Brown Shoe • JDA® Allocation Company and a top retailer of name-brand • JDA® Assortment Planning shoes in the United States, has more than 800 • JDA® Enterprise Knowledge Base stores and serves 120 million customers each • JDA® Performance Analysis year. • JDA’s Merchandising solutions Revenues $1.2 billion Business Benefits • Enhanced enterprise-wide visibility • Better information for decision-making • More precise product plans • Faster moving product assortments “JDA’s solutions help us to deliver the • Improved inventory management numbers we need to drive our company’s • Minimized loss from markdowns and stock-outs growth . As our level of proficiency with the technology has improved, we’ve • Improved information sharing been able to significantly enhance our planning and execution of assortments Quantifiable Benefits as well as the placement of inventory. Famous Footwear achieved a 6.3-percent increase in sales, a 2.5-percent rise It’s a combination of the tools, internal in same-store sales and 11.2-percent jump in operating earnings. processes and experiences that we’ve had with JDA solutions that have helped us deliver the results.” - John Dembinski, vice president of merchandise planning and allocation, Famous Footwear
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  For Famous Footwear,the $1.2-billion division of Brown Shoe Company and a top retailer of name-brand shoes in the United States, making sure regional assortment differences are accounted for is a daily challenge. With more than 800 stores and 120 million customers each year, Famous Footwear needed to find a more efficient and effective way to deliver a fresh and precise flow of new styles to each store. The retailer implemented several JDA Software solutions to replace manual processes and to sharpen its planning and allocation processes. With JDA solutions as the foundation, along with new processes in place, Famous Footwear is seeing rapid results. Today planners and allocators have better information for decision making, enhanced enterprise-wide visibility and more precise product plans. And, the company has achieved faster moving product assortments and enhanced inventory management. Shortly after implementing the JDA solutions, Famous Footwear achieved a 6.3-percent increase in sales, a 2.5-percent rise in same-store sales and 11.2-percent jump in operating earnings. “Shoes are not a high-turn business and as system that used static models also based a result, our success depends on having the on spreadsheets. This was how we managed Shifting Market Data Demands right assortments and sizes on the shelves inventory levels at our stores. We soon Fast Response when our customers walk into the store,” recognized that the spreadsheet approach Dembinski said. “Our biggest challenge was too labor intensive and that the static To reach its target market and continue was how to plan and execute an assortment model approach didn’t deal with demand its aggressive growth, Famous Footwear strategy that allowed us to turn inventory fluctuations in our stores. These were the knew that it had to capture and respond and drive continuous freshness.” key drivers for us to take a look at where to the variation and diversity that is we go next.” driven by demographics, climate and If any industry is going to test the limits region. Specifically, the challenges for the of an IT infrastructure, it’s retail. As the company’s planning and allocation teams company analyzes demographics and JDA Software Solutions: The centered on three key areas: different product mixes, new trends in Right Fit for Famous Footwear market data must be entered into the • Manage the diversity of its assortment system quickly to realize the benefit — Famous Footwear conducted a and products and stay ahead of the competition. Before comprehensive vendor selection process and • Match the right products and quantities turning to JDA, Famous Footwear relied on implemented the first component of JDA’s to specific regions and target customers cumbersome, manual processes to manage Enterprise Planning solutions that support • Support the latest sales trends planning and allocation. merchandise planning. The company then John Dembinski, vice president of “In the past we were dependent on quickly deployed additional solutions over merchandise planning and allocation spreadsheets that were traded back the next three years. According to Mary for Famous Footwear, said the company and forth by many different people. It Thostenson, Arthur® systems administrator first needed to better understand its was a coordination nightmare,” said for Famous Footwear, JDA’s Enterprise customers so that it could deliver the right Tom Hendricks, vice president of retail Planning implementation approach and the merchandise to the right place. information systems for Brown Shoe best-of-breed solutions made it a perfect fit. Company. “We had an in-house allocation 2
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  Looking to theFuture Looking ahead, Famous Footwear is considering other JDA solutions that will provide new functionality for store clustering, advanced store and warehouse replenishment and revenue management. “Today we have a robust planning and allocation infrastructure,” Dembinski said. “We were able to achieve it by building a well-thought out business strategy, taking a best-practice approach to designing our processes and supporting both with JDA’s leading solutions. In today’s retail space you simply won’t gain optimum bottom-line results without all three.” About JDA Software Group, Inc. JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, is the leading provider of innovative supply chain management, merchandising and “The other solution providers we considered “JDA’s solutions help us to deliver the pricing excellence solutions worldwide. were geared toward the smaller, middle-tier numbers we need to drive our company’s JDA empowers more than 6,000 companies enterprise and we were growing much too growth,” Dembinski explained. “As our of all sizes to make optimal decisions that quickly,” Thostenson said. “It was clear to level of proficiency with the technology has improve profitability and achieve real results us that JDA fit the bill.” improved, we’ve been able to significantly in the discrete and process manufacturing, enhance our planning and execution of wholesale distribution, transportation, With its planning and allocation processes assortments as well as the placement retail and services industries. With an powered by JDA, Famous Footwear has integrated solutions offering that spans of inventory. It’s a combination of the seen a significant reduction in processing the entire supply chain from materials to solutions, internal processes and experience time — no more spreadsheet handoffs — the consumer, JDA leverages the powerful that we’ve had with JDA solutions that have and improved planning at multiple levels of heritage and knowledge capital of acquired helped us deliver the results.” the retail hierarchy. market leaders including i2 Technologies®, Based on its successful implementation Manugistics®, E3®, Intactix® and Arthur®. “The technology has enabled us to roll up at Famous Footwear, the company has JDA’s multiple service options provide a plan at the starting point of execution,” expanded the deployment of JDA solutions customers with flexible configurations, rapid Hendricks said. “With JDA® Allocation to support its specialty retail brands time-to-value, lower total cost of ownership we are able to keep pace with the products Naturalizer, F.X. LaSalle and Via Spiga and 24/7 functional and technical support that are selling best and make sure and expertise. To learn more, visit stores in North America, as well as its appropriate inventory is allocated down to www.jda.com or e-mail [email protected]. Shoes.com e-commerce division. the store level.” WEB AMERICAS EUROPE ASIA PACIFIC www.jda.com US UK & Northern Europe Singapore Japan Bangalore EMAIL 4-Color +1 800 479 7382 +44 (0) 1344 354500 +65 6305 4350 +81 3 6418 1100 +91 80 4120 8506 [email protected] Canada & Latin America France & Southern Europe Australia China Mumbai +1 480 308 3555 +33 (0)1 56 79 27 00 +61 2 8912 7900 +86 21 2327 9400 +91 22 6770 3343 Copyright © 2010, JDA Software Group, Inc. All rights reserved. JDA is a Registered Trademark of JDA Software Group, Inc. All other company and product names may be Trademarks, Registered Trademarks or Service Marks of the companies with which they are associated. JDA reserves the right at any time and without notice to change these materials or any of the functions, features or specifications of any of the software described herein. JDA shall have no warranty obligation with respect to these materials or the software described herein, except as approved in JDA’s Software License Agreement with an authorized licensee. 02.26.10 3