Two for i2

Southwest Airlines, AngloGold sign up to use provider's supply chain solutions

Dallas  October 30, 2002  Supply chain solution provider i2 this week scored two customer wins, announcing deals with Southwest Airlines and AngloGold.

Southwest, the world's fourth largest airline in terms of customers boarded, has gone live with i2's Service and Parts Management (SPM) solution in a bid to optimize its total investment in spare parts while maintaining customer service levels.

The provider said the solution is designed to allow Southwest to maintain availability of critical parts in key locations, eliminating overstocking, while minimizing the potential of stock-outs and ultimately reducing the customer service issues associated with flight delays and cancellations.

The airline deployed the solution in two waves, first implementing the Demand Planner component, which provides information on part demand and forecasting, in February. In August Southwest added Service Parts Planner to the solution. The combined solution extends across the breadth of the airline's service and parts management functions, which support 368 Boeing 737 aircraft.

Southwest is counting on the solution's advanced planning capability to help minimize required spares inventories while allowing the airline to optimize service plans to best meet service level objectives.

Meanwhile, gold producer AngloGold is set to use i2's Supplier Relationship Management (SRM) and Content solution in an effort to gain overall spend visibility on strategic commodities, maintenance repair and overhaul (MRO) and other material and services across its global operations.

AngloGold maintains 20 operations in eight countries worldwide, and the company is among the world's largest gold producers, with production of approximately 6 million ounces of gold each year.

The company identified the need for an SRM solution after experiencing increasing complexity in the effective management of sourcing and procurement processes.

"After some years of organic growth and recent acquisitions, we were in a complex situation with multiple [enterprise resource planning (ERP)] systems installed globally," said Malcolm Farrell, manager for group procurement at AngloGold. "These isolated systems did not provide the overall corporate spend visibility we needed for efficient procurement and sourcing. By integrating i2 SRM and i2 Content to the existing systems, we expect to streamline these processes and improve margins and profitability."

i2 said that SRM will help AngloGold in identifying and aggregating spend figures on an enterprise wide level, allowing the company to negotiate and consolidate spend with fewer strategic suppliers in order to leverage buying power. Purchasing can still be handled from the individual sites, however, since all locations will select materials from a central catalog.

Once the solution is active, AngloGold intends to automate the end-to-end procurement process, from buyers requisitioning materials, through approvals, purchase orders placed with suppliers and financial settlement of invoices.

The i2 solutions will be implemented on top of AngloGold's existing ERP systems.