Where Retailers Should Invest Capital to Improve Sales, Profits in 2009

JDA Software: end-to-end merchandising, supply chain solutions and support services that garner quick ROI are critical in a challenging economic climate


JDA said retailers that invest in next-generation transportation management solutions can optimize the flow of goods within a complex, dynamic multi-modal environment, helping project and determine the ideal in-stock and flow of inventory relative to fuel prices and service levels at any given time. Additionally, managing transportation procurement through logistics sourcing solutions and optimization services minimizes exposure to dramatic rate increases while ensuring consistent and reliable movement of freight.

Customer Service & Support — A Key Consideration

While not a stand-alone solution investment, customer service and support is vital to maximize capital investment in inventory execution, pricing and promotions and transportation management, according to JDA Software. A positive trend on the market, 40 percent of respondents to the annual 2008 RIS News IT Services Leaderboard Survey chose domain expertise as the most important factor when considering an IT services supplier.

In today's economic climate, JDA said retailers must compete for market share against peers — despite decreased availability of consumer credit and the escalation of housing and fuel costs. In 2009, retailers would be wise to invest in technological solutions to improve inventory execution, pricing and promotions and transportation management. And, while these supply chain and logistics solutions are the cornerstone to effective and competitive retail operations, JDA said that smart retailers will realize that vendor selection is also critical.

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