Volex Tackles Supply-Demand Imbalances

High-tech manufacturer deploys automated decision management solution from Timogen to enable fast response to supply chain issues

Mountain View, CA — May 5, 2004 — Cable assembly producer Volex has completed a multi-site deployment of automated decision management software from solution provider Timogen Systems in a bid to enable faster responses to imbalances between supply and demand.

U.K.-headquartered Volex is the world's largest independent producer of cable assemblies, with more than 30 facilities located in the major geographic markets of Europe, North and South America and Asia to support manufacturers of computers, telecommunications systems and networking devices.

The company has implemented the Timogen Adaptive Controller (TAC) solution, which helps provide resolutions to supply chain issues, with the goals of improving its inventory utilization, on-time order fulfillment rates and customer satisfaction.

Timogen said that TAC monitors inter-enterprise, inbound logistics for potential issues and variances in supply and demand, and the solution offers resolutions for the issues based on analytics and the enterprise's business goals.

Volex is using TAC across eight of its global manufacturing facilities to improve inventory velocity. With TAC, Volex personnel — from the C-level executive to the business user — can now monitor the issues and resolution processes of over 16,000 products, according to Timogen.

"By combining resolution intelligence and execution capability with global supply chain visibility, Timogen gives us multi-tier control and insight to make better purchasing, production and execution decisions," said Chris Rutherford, vice president of global supply chain at Volex. "The timeliness of that visibility will enable us to significantly improve our inventory and production costs. What was a weekly event is now updated multiple times in the course of a day."

With TAC, Volex is looking to achieve lower costs and smoother operations. Timogen says that with the solution in place, expedite costs are lowered due to continuous supply-demand synchronization, which in turn yields higher purchasing personnel productivity. Proactive supply management can also result in lower inventory carrying costs due to reduced levels of safety stock. Ultimately, less downstream disruption means better customer in-stock performance and improved revenues, Timogen asserted.

"Improving inventory velocity has too often meant either carrying significant inventory or compromising customer service," said Rick Zipf, CEO of Timogen. "Timogen enables customers like Volex to resolve this problem while still meeting business goals."

In other news, Timogen recently announced the release of its updated application for automated decision management, Timogen Decision Manager (TDM). This solution expands the alert-notification functionality of TAC with the addition of analytics, optimization-based advice and recommended actions, according to the solution provider.

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