Supply Chain Wins Wrap-Up

Toshiba taps i2 again; AstraZeneca deal strengthens Manugistics' pharma position

Tempe, AZ  November 8, 2001  The deals just keep coming for supply chain software companies i2 and Manugistics, each of which recently announced a major new engagement.

Toshiba will implement a supplier relationship management (SRM) solution from i2 in a bid to streamline its purchasing of direct and indirect materials, the solution provider has announced.

i2 says its SRM solution will help synchronize supply, planning and purchasing processes for Toshiba Corp.'s Semiconductor Company by reducing costs, improving business efficiencies and optimizing assets based on current and expected demand.

The i2 solution will allow for centralized daily planning and demand management for more than 35 sales organizations, distribution centers and warehouses in Japan, Asia, Europe and the United States. Toshiba is betting that real-time order inquiry will result in reduced inventory within the entire supply chain while allowing for increased flexibility to fill urgent orders, therefore maximizing business value.

"Toshiba sees an average of 3,000 customer orders daily, so providing a consolidated forecast and order system is critical to being able to fulfill those orders quickly and accurately," said Dave Horne, i2 vice president. "i2 SRM takes into account Toshiba's sourcing and supply constraints and then determines an optimum sourcing strategy, making the purchase request and purchasing of both direct and indirect materials smoother."

"With i2 SRM, we hope to continue improving our internal processes so our customers will see a quick turnaround with their orders," said Seijiro Suzuki, CIO at Toshiba. Suzuki, noting that Toshiba had a track record with i2, added, "We wanted to see where else i2 could step in and create efficiencies."

Meanwhile, pharmaceutical manufacturer AstraZeneca will implement a suite of Manugistics supply chain management solutions, aiming to create a more integrated, responsive and flexible supply chain and to cut operational cost by improving the management of inventory nearing expiration and reducing total finished goods inventory.

AstraZeneca ranks in the top five pharmaceutical companies in the world, with healthcare sales of $15.8 billion. In the United States, AstraZeneca is an $8 billion healthcare business with more than 10,000 employees.

Manugistics says its NetWORKS solutions will enable AstraZeneca to replace its manual in-house processes with an automated system that can optimize capacity planning, as well as inventory planning and deployment, across the company's U.S-based operations.

The pharmaceutical company is also looking to use the solutions to rationalize its existing fulfillment network, identify desirable locations for possible new distribution centers and model a variety of supply chain scenarios. The company will use Manugistics' Web-based analytical and reporting tools to monitor its supply chain.

AstraZeneca's supply chain project is one component of its plan to implement process and organizational design initiatives in accord with industry best practices.

"By using Manugistics solutions to improve the visibility and effectiveness of our fulfillment network, we expect to enhance our commitment to customer service," said Grace DiCecco, project manager for operations capability planning at AstraZeneca.

In addition, Manugistics says its solutions will create an optimized inventory plan that takes into account inventory age and shippable shelf-life, which could help AstraZeneca ensure that products are distributed in a timely manner. The solutions will also better enable AstraZeneca to plan capacity and build the right inventory pipeline so that when a new product does launch, supply can effectively meet anticipated demand, according to Manugistics.

"Life sciences companies are increasingly recognizing that if the extended supply chain is inefficient and unresponsive to market forces and customer demands, then even top-line revenue growth may not be enough to ensure profitable growth," said Glynn Perry, Manugistics vice president of life sciences.

Perry emphasized Manugistics' strength in the life-sciences field, noting that seven of the top 10 Fortune 500 life sciences companies use Manugistics solutions.