New product boosts DaimlerChrysler inventory accuracy to 95 percent
Palo Alto, CA — September 7, 2004 — Supply chain performance management company SeeCommerce today announced SeeChain 5.0, which allows businesses to maintain visibility into and manage inventory levels of materials that are maintained off-site at contract manufacturer and supplier locations. According to SeeCommerce, this enables manufacturers to avoid overstocks, shortages and financial write-downs that are common to consignment inventory programs.
DaimlerChrysler Corp.'s Mopar Parts Group — the primary distributor of parts and accessories for all Chrysler, Dodge and Jeep dealerships worldwide — is currently using SeeChain applications to manage more than 280,000 original equipment service parts, and process over 200,000 dealer order lines per day.
Recently, Mopar began using the SeeChain 5.0 Consignment Inventory Module to address offsite storage problems. In just six months, Mopar said it has improved its inventory record accuracy from 42 percent to 95 percent at over 19 supplier locations. As a result, Mopar has virtually eliminated inventory write-offs for lost and missing stock at these locations.
"SeeChain has enabled us to improve inventory record accuracy for consigned inventory that is maintained at supplier locations," said Jerry Quell, senior manager of inventory management for the Mopar Parts Group. "By bringing difficult to manage off-site materials under the same inventory control system we use for parts stored in our distribution centers, the SeeChain Consignment Inventory Module has allowed us to eliminate inventory write-offs for lost and missing stock."
To prevent large and sudden financial write-downs associated with unexpected excess inventory and revenue/market share losses caused by material shortages, SeeCommerce said the SeeChain Consignment Inventory Module enables companies to bring off-site inventory within the purview of their existing inventory control process.
Managers using the software are automatically alerted when performance thresholds for consigned inventory are violated. The SeeChain alert contains links to root cause data that enables managers to address impending shortages or overstock conditions before they can negatively impact business performance.
In addition, SeeChain correlates and analyzes the impact of variances in actual inventory levels when compared against predefined performance indicators.
"Consignment inventory, when done right, can provide a competitive advantage. However, without the proper controls it can create liabilities," said Parviz Hooman, senior vice president of research and development for SeeCommerce. "SeeChain 5.0 provides automated facilities that eliminate much of the risk associated with consignment inventory, while allowing manufacturers to capitalize on this high return business strategy."
To accelerate root cause analysis and problem resolution, SeeCommerce said that SeeChain 5.0 combines performance alerts with a visual representation of the company's internal and external supply chain hierarchy.
In addition, SeeChain allows performance alert details — along with links to the supply chain hierarchy view — to be forwarded directly to authorized users inside and outside the company via e-mail. This allows co-workers and suppliers to view and access performance exception information within the global context of the company's supply chain.