How Do You Stack Up?

J.D. Edwards' 'Value Calculator' enables companies to measure supply chain efficiency against industry peers

Denver, CO  October 31, 2001  J.D. Edwards & Co. today announced the availability of its Advanced Planning Value Calculator, a tool that allows enterprises to compare their supply chain performance against that that of industry competitors, and to identify ways to improve problem areas. Currently available on J.D. Edwards' Web site, the Value Calculator is targeted at more than a dozen vertical industries, specifically those in the manufacturing and distribution sectors.

In a statement, J.D. Edwards said it recognizes that enterprises looking to improve their supply chain processes face complex choices and numerous supply chain components. Therefore, the Value Calculator was created to help enterprises evaluate the efficiency of their supply chains against industry benchmarks, identify specific opportunities to improve their processes, and pinpoint the supply chain components that deliver the most value to their businesses. The online tool supports J.D. Edwards' strategy of providing customers with solutions that fit their specific needs and carry a low total cost of ownership (TCO).

The Value Calculator uses basic data to provide relevant information about enterprises' supply chain performance. To get started, the user answers a few basic questions, chooses an industry from a pull-down menu, and submits the information. Results are displayed in a table that shows how the company stacks up, in financial measurements related directly to supply chain performance. The company is compared to the first quartile performers, median performers and last quartile performers from the selected industry. The financial measurements tracked include revenue growth, cost-of-goods-sold, days in inventory, and fixed asset/revenue ratio. Industry data to support this analysis is provided by Finlistics Solutions.

If a company has gaps in these performance areas, as compared to the first-quartile performers of its industry, the annual impact of the gaps are quantified and displayed back to the user. The user can see the magnitude of the gap, and the rough impact that the gap has upon annual profit. Links are then provided to show the user how the J. D. Edwards Advanced Planning Solution supports improvements to business processes that result in the performance gaps the company is experiencing.

"In today's tightened economic environment, companies are looking for focused, value-driven solutions that improve profitability," said Dave Strothmann, J.D. Edwards' product marketing manager, Advanced Planning Solutions. "Our Value Calculator not only lets companies evaluate internal processes but also identifies how they stack up against the competition."

The Advanced Planning Value Calculator offers a "quick sample" of J.D. Edwards' value sales methodology designed to help enterprises reap the greatest benefits in the shortest amount of time. In addition to the value calculator, J.D. Edwards provides in-depth analysis services for customers who require a more detailed evaluation of their business processes.