SARCOM Goes with SDA for Inventory Asset Management

Company with multiple logistics providers cites reduction in complexity, operating costs

Bloomington, MN, and Lewis Center, OH — October 13, 2004 — System Design Advantage (SDA) LLC, a provider of parts replenishment and repair solutions, today announced that Sarcom, a technology business services and solutions provider, has selected the Inventory Asset Management (IAM) solution offered by SDA and supported by Choice Logistics Inc.

Prior to tapping SDA, SARCOM said it was struggling to coordinate several disparate services provided by a number of logistics providers. This struggle lead to major complexities in SARCOM's ability to maintain consistent processes at multiple shipping and receiving points, difficulties in managing cost variations between the providers, as well as a wide variance of different control and visibility issues.

"Results were immediate," said John Strauss Sr., vice president of Services for SARCOM. "SDA identified for us what they could and could not provide. What impressed us about SDA was how quickly they responded and how committed they were to making this partnership successful."

Strauss reported that the results of the implementation included a reduction of nearly $700,000 in operating cost in the first year; centralized parts logistics operations; improved management of parts logistics process, shipping and receiving, ordering, financial management, and operations reporting; and reduced time and costs associated managing multiple providers; among others.

"I can say that SDA truly understands the meaning of customer satisfaction, not just for us but, more importantly, for our customer community," continued Strauss. "To this day I get consistent follow-up and communication to make sure we are satisfied with their services."

"Sarcom is a leading-edge company, plain and simple," said Jim Sahli, president and CEO of SDA. "We are excited to work with them on this strategic initiative to accelerate sustainable savings across the enterprise."

In January 2004, SDA and Choice Logistics announced an alliance to deliver an integrated logistics and parts/repair solution. The Inventory Asset Management (IAM) services was to include central stock inventory, dedicated on-site inventory, field inventory, repair and replenishment in a one-source solution.

SDA said the move has its capabilities in the market for virtual-managed inventory asset services, a subset of the $1.7 billion service parts market.

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