Friday, December 12, 2008

The JDA System

I am a specialist of the JDA System!



What is the JDA System? The JDA MMS System initially stands for the initials of its founder - James D. Armstrong. It basically addresses the basic and core retail functions within the context of merchandise management or inventory.



These companies are using this system in the Philippines: National Bookstore, SM Department Store, Robinsons Department Store, Robinsons Supermarket, Robinsons Handyman, Abensons Appliance Center and a multitude of other stores.



The JDA System is good for retailers for a variety of reasons. First, the sales data per store or for the entire chain found on the mainframe computer is in real time. At the end of day, sales from every store is uploaded into the mainframe computer. So you will see the actual sales from the previous day.

But if you want to see the actual sales for the day, you will have to go to a specific store's computer to get the actual sales.


Second, the new products are uploaded to every store's system. Every product is given a sku (or stock keeping unit) so it is easy to monitor the sales movement.

You can even see the sales made with no discount as well as sales made from discounts. So, you will be able to see if store people are selling particular products with discounts!


Third, the inventory figures uploaded can be checked against the actual inventory figures in the stores. If there are discrepancies, you will know that people stole the products or no actual deliveries were made.

In Robinsons Supermarket, they were actually losing billions of money through theft for several years. But the system was able to point out to them this fact.

They were able to catch the thieves - the deliverymen of several companies, the inventory people of the deliveries and store personnel in several stores.


In Watsons Personal Care Stores, there is even a planogram system!

In displaying the products, the most saleable items are within eye level. Usually, these are products in saleable sizes. The products in the big sizes are displayed on the upper shelves and the products in the small sizes are displayed on the lower shelves.

The products are displayed basically on sales movement. Medicines or the pharmacy area are on the sides or in the back portion of the store. Cosmetics are in the front area of the store. Food and drinks are displayed on shelves and coolers on the side aisles. Products on sale are displayed in the middle section of the store.

Why were products displayed this way?

Medicines are in the back portion because people will go there because they need the products! And in doing so, they will be passing rows of products that they need (or do not need) and eventually buy.

Cosmetics are in the front area of the store so as to entice shoppers to buy them. Women will not buy cosmetics especially if they are on a tight budget!

Food and drinks will be bought because people need them! So even if they are displayed on the sides, people will look for them.

Products on sale are displayed in the middle section of the store. They are displayed here so as to entice (or force!) people to buy them.

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