Valdero Targets Demand Chain

Introduces Multi-Tier Demand Visibility Application to provide sell-side visibility across sales, distribution networks

Palo Alto, CA — April 8, 2003 — Supply chain execution specialist Valdero today rolled out a new solution aimed at giving manufacturers the ability to get closer to the true picture of customer demand through visibility across complex multi-tier sales and distribution networks, allowing enterprises to attain real-time responsiveness to a changing demand picture.

As Valdero sees it, manufacturers currently face problems of variable supply and limited control on their buy side, and the variability of customer-configured demand on the sell side. Meanwhile, their current enterprise resource planning (ERP) and other planning systems primarily address stable processes within their companies.

In order to be able to quickly adapt to changes as a way of minimizing potential inventory shortages or excesses in the face of sales forecasts that are never 100 percent accurate, manufacturers need real-time visibility into actual sales information to adjust production and fulfillment activities to get the right products to the right place at the right time, the solution provider argues.

Valdero says it has designed a suite of applications that solve the range of problems inherent to extended supply and demand chains. The provider's supply chain execution software is intended to enable supply and demand matching by providing real-time visibility and intelligent execution on both the demand and the supply sides.

By delivering real-time visibility into inventory positions internally and with suppliers, contract manufacturers and distributors, Valdero believes its applications can help manufacturers minimize inventory exposure by driving down excess and obsolete levels and by ensuring that supply meets actual demand. Operations, manufacturing, supply chain and sales professionals can access the information they need to run an efficient supply and demand chain, the provider says.

The new Multi-Tier Demand Visibility application, which joins Valdero's Supply Demand Matching and Multi-Tier Supply Visibility solutions, was designed to provide manufacturers with tools to manage products through the demand cycle by tracking distributed demand, enabling real-time visibility of actual demand across multiple tiers and channels of complex distribution networks.

The new solution also monitors excess finished goods so that companies can analyze inventory sell-in and sell-thru to avoid price protection and stock rotation penalties from excess finished goods in multiple distribution channels. And the solution provides tools for continuous demand management, allowing a company to monitor customer demand throughout an entire distribution channel to improve responsiveness and customer fill rates.

Walt Rossi, vice president of marketing at Valdero, said a key feature of the provider's software is that it offers a single "dashboard" to give supply chain executives a view of the critical processes at work in their value chains and the tools to keep those chains running smoothly.

"We really felt that the user interface in our application had to provide one place where supply chain people could go every day to monitor the health of their supply chains and take corrective actions as necessary," Rossi said. "So we embedded in the interface the business processes that users go through to solve a problem.

Rossi added that the provider's offering leverages a company's past investment in ERP and other planning solutions by pulling data out of those systems for the benefit of supply chain executives, combining that internal information with data from external partners like suppliers and distributors to offer a more holistic view of the supply chain.

Valdero is targeting its offering at markets in which companies have high-volume, complex channel strategies and multiple tiers of distribution, where enterprises might experience allocation issues and poor demand visibility. Potential users of the new demand-side solution include vice presidents of operations, sales operations, demand fulfillment and channels.

The provider's target industries for the solution include consumer electronics, semiconductor, computers and peripherals and medical devices.

"Multi-Tier Demand Visibility offers a new way of managing business for manufacturers with very complex, multi-layered distribution channels," said S. Singh Mecker, Valdero's president and CEO. "Computer and peripherals manufacturers will benefit from the product, as well as companies in industries such as consumer electronics, semiconductor and medical device manufacturing."

Potential benefits from the new solution, according to Valdero, could include an increase in order fill rates, improved cash-to-cash cycle times and reductions in excess and obsolete inventory in the channel. As an example, Rossi cited one Valdero customer that had been able to reduce its excess and obsolete inventories by 95 percent and to increase its turns by 50 percent.

Rossi said that the average selling price for the Valdero solutions ranges from $300,000 to $500,000, with implementation times running under three months.