Controlling the Outsourced Supply Chain

Valdero rolls out supply chain execution suite, announces technology customers

Mountain View, CA  February 5, 2002  Valdero today rolled out version 1.5 of its flagship application suite, which the software company says can reduce manufacturing costs and liabilities through better management of extended supply chain execution.

Also today, Valdero reported that three technology companies had signed up to use its solutions to improve their ability to monitor, understand and respond to changes across their extended supply chains.

Valdero said it designed the suite specifically for companies challenged with reducing costs while improving responsiveness in increasingly outsourced manufacturing environments.

The solution provider said its suite can reduce inventory-related costs and improve performance across outsourced or "extended" manufacturing supply chains, such as those typically used by high-tech manufacturers. Companies using the suite can continuously identify daily changes across all systems and participants in the extended supply chain; analyze the business impact of those changes; and take action based on their approved procedures, business rules, trends and business objectives, according to Valdero.

The software company's suite comprises five applications, including Demand, which monitors demand variability by correlating orders with forecasts, and offers guidance for optimal inventory levels; Inventory, which improves inventory management by monitoring shortages and liability against orders and supplier delivery; and LifeCycle, which offers Engineering Change Order (ECO) analysis when products change, including guidance on when to cut in ECOs.

The suite also includes Order, which continuously tracks responsiveness to customers through key operational indicators such as on time complete shipments, and provides guided resolution for allocation issues; and SupplyBase, which supports close management of supply chain execution by monitoring contract manufacturer and supplier performance and contractual obligations.

"Valdero's system acts as an air traffic controller for the extended supply chain," said S. Singh Mecker, president and CEO of Valdero. "Valdero bridges the gap between planning systems and transaction systems."

Mecker said the software provides operations organizations with the ability to manage daily changes in the extended supply chain through rules-based analysis, what-if capabilities and recommendations for resolution.

Valdero said its suite requires a 12-week implementation and the software will integrate with popular supply chain environments.

Meanwhile, technology companies Advanced Fibre Communications (AFC), Aspect Communications and Juniper Networks have elected to use Valdero's suite, according to the solution provider.

Petaluma, Calif.-based AFC, the country's number two supplier of integrated multiservice access platforms (IMAPs) for the telecommunications industry, is implementing Valdero in order to improve collaboration and communication with its contract manufacturers and suppliers.

"AFC selected Valdero's solution because it allows the company to strengthen the performance of its existing investment in enterprise supply chain technology by eliminating any gaps between planning and execution," said Jeffrey Rosen, vice president of operations at AFC.

Aspect Communications is working on a program to enable it to refine its manufacturing and continue to provide the highest levels of service to its customers.

"Valdero's solution helps us gain further insight into our supply chain operations, making them more efficient and thereby allowing us to further increase our focus on customers," said Kathy Tyra, Aspect's vice president of operations.

A leading supplier of IP infrastructure systems, Juniper Networks has implemented Valdero software to give it a comprehensive view of its supply chain operations.

"With Valdero, we have the concise and complete, real time information we need to maintain our high standards for operational performance and customer service across the entire supply chain," said Michael Dodd, vice president of operations for Juniper Networks.