PaperPak Embraces Compliance-to-collaboration Approach to Supply Chain Planning

Global manufacturer streamlines operations, improves customer service levels with largest trading partner

West Chester, PA — June 23, 2004 — PaperPak Products Inc., a $160 million global manufacturer in the consumer products industry, said today that it has achieved supply chain and customer service-level improvement by using retailer-centric software and services from Prescient.

With Prescient's supply chain planning suite, PaperPak said it has transformed a critical relationship from mere tactical compliance to a truly collaborative partnership, culminating in the company's receipt of "Supplier of the Year" status from its largest trading partner Cardinal Health.

PaperPak said that Cardinal Health is a publicly held, $50-billion provider of products and services supporting the health care industry. PaperPak turned to Prescient when Cardinal required the manufacturer to implement a vendor-managed inventory (VMI) program.

Cardinal was clear about expected results: lowered inventory levels at Cardinal distribution centers and a significant improvement in supply chain performance metrics, guaranteeing Cardinal a minimum 98 percent service level.

"We knew we needed a technology partner with the right combination of functionality, flexibility and cost to collaborate with Cardinal on its terms without raising our own inventory risk or shouldering additional costs," said Lisa Anderson, vice president of product supply, PaperPak Products. "We evaluated the supply chain had the ability to cost-effectively support the many forecasting nuances that were critical to our ability to drive a successful and mutually beneficial VMI relationship with Cardinal."

Through its partnership with Prescient, PaperPak has facilitated a VMI program, obtaining a real-time view of demand, optimizing pallets and truckloads, lowering inventory and increasing service levels. PaperPak said its demand planners can now view orders and resolve supply chain issues in real time, like those relating to seasonality and backorders, to make better-informed forecasting and replenishment decisions.

The improvements PaperPak has achieved in the areas of service, lead-time and inventory turnover have enabled the company to obtain the status of preferred supplier from Cardinal without experiencing a drain on internal resources or profitability, according to the manufacturer.

Based on the success of its VMI program, PaperPak said it relies on Prescient not only to drive improvements with trading partners but also to support internal forecasting. PaperPak expects to increase its own productivity and manufacturing efficiencies through the development of more accurate forecasts and budgets.

Jane Hoffer, president and CEO of Prescient, commented, "Trading partners that are agile enough to collaborate in a way that makes the most sense for each relationship and address each partner's unique requirements are poised to take maximum competitive advantage."

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