Rohm and Haas Selects Software to Improve Global Supply Chain Performance

Specialty materials producer to implement solution from SmartOps to improve customer service, optimize inventory utilization

Pittsburgh, PA — January 12, 2006 — Rohm and Haas Co., a producer of specialty materials for a variety of industries, said it will implement SmartOps Corp.'s Multistage Inventory Planning & Optimization (MIPOTM) solution to improve customer service while optimizing inventory utilization.

Under terms of the licensing agreement, Rohm and Haas will use MIPO as part of a global supply chain performance improvement initiative. Data from Rohm and Haas' enterprise systems, including SAP and Manugistics, will be fed through MIPO to calculate optimal inventory targets and create accurate what-if scenarios for analyzing supply chain strategies.

As an integral part of our customers' supply chains, we understand the critical importance of maintaining excellent service levels, said Stephen Rauscher, vice president, global supply chain director, architectural and functional coatings. We needed a dynamic and integrated methodology for optimizing our complex global supply chains that fits within our enterprise IT architecture.

Sridhar Tayur, CEO of SmartOps, commented that managing Rohm and Haas' complex, multi-echelon supply chain requires clear visibility into the drivers of supply chain performance, particularly inventory. MIPO gives them the accurate, timely data they need to make the right planning decisions to improve customer service, he said. Rohm and Haas' investment in SmartOps and MIPO will help drive better service and increased value in their supply chain.

Tayur went on to say that MIPO enables customers to determine the best possible inventory and product availability plans given the inherent uncertainties, time-varying data, multi-location and inventory stage complexities, and aggressive customer service goals of today's real world supply chains.

MIPO generates optimal inventory targets for each stage of the supply chain while providing visibility into each inventory requirement — including safety, cycle, pre-build, pipeline and merchandising stock requirements, by item or stock-keeping unit (SKU) — to meet desired service levels.

MIPO's optimized inventory targets serve as inputs for enterprise resource planning (ERP) and advanced planning and scheduling systems, so they deliver better intelligence for inventory planning and execution.

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