Almacenes Exito Increases Inventory Turnover By 10%, Reduces Overstocks By 60% And Decreases Out-Of-Stocks By 12% With JDA Software's E3 Solutions

JDA® Software Group, Inc. announced that Almacenes Exito, a leading $3.5 billion* retailer in South America, has realized substantial inventory optimization improvements with the support of JDA Software's E3 Allocation and Replenishment solutions. Almacenes Exito manages a successful online business and more than 255 grocery and hypermarket stores in 45 cities throughout Colombia. The retailer leveraged JDA's Advanced Warehouse Replenishment by E3® and Advanced Store Replenishment by E3® solutions at 114 stores to increase inventory turnover by 10 percent and reduce overstocks by 60 percent in 2006, as well as reduce out-of-stocks by 12 percent the previous year.

"We immediately starting seeing results from the software implementation, thanks to the on-time and on-budget installation of Advanced Warehouse Replenishment and Advanced Store Replenishment," said Almacenes Exito Chief Information Officer José Londoño. "One of the most important changes was the centralization of replenishment. This provided us with better and quicker decision-making abilities, and was a major improvement over our previous purchasing process in which buying decisions were influenced by suppliers on a store-by-store basis."

Londoño added, "JDA's replenishment solutions have allowed our company to free up important resources that were previously devoted to inventory management. Moreover, the new system has increased customer satisfaction by reducing out-of-stocks, avoiding lost sales and customers due to breaks in the supply chain. We have been able to maintain our position as a leading retailer in South America with the support of JDA Software."

Inventory levels at all of Almacenes Exito's stores were positively impacted by the centralized replenishment system, resulting in improved data and the fulfillment of logistics agreements with the company's suppliers. Additionally, the retailer's use of the JDA E3 replenishment solutions has provided benefits such as boosted productivity levels, enhanced supply chain visibility, reduced days of inventory, increased customers service levels, minimized lost sales, as well as improved supplier relationships.

"JDA Software's E3 Allocation and Replenishment solutions enable companies such as Almacenes Exito with heightened visibility into the supply chain and the ability to make more precise inventory investment decisions," said Wayne Usie, JDA senior vice president, retail. "In addition to providing a fast return on investment, the solutions within JDA's Allocation and Replenishment suite offer long-established reliability, operational flexibility, accurate forecasting and exacting execution. We look forward to continuing to help Almacenes Exito and other companies gain maximum value from their JDA Software investment to enable one synchronized view of demand."