Rheem Air Conditioning Adds Supply Chain Planning

Increasing service levels through improved inventory planning is key driver

Increasing service levels through improved inventory planning is key driver

Atlanta — June 28, 2004 — Logility Inc., a supplier of collaborative supply chain solutions, today announced that Rheem Manufacturing's Air Conditioning Division, one of North America's leading producers of premium heating and cooling equipment, selected Logility Voyager Solutions to improve visibility of demand and inventory, reduce costs, and increase customer service levels for service parts and finished goods.

Rheem said it has used Logility Voyager WarehousePRO in its parts operation to optimize receiving, picking, shipping and cross-docking functions since 2001.

"Rheem has a great track record with Logility," said Bob Cowan, vice president finance of Rheem Manufacturing Air Conditioning Division. "With the additional Logility Voyager Solutions, we expect to achieve significant supply chain benefits from balancing overall supply and demand, which should result in improved customer service."

Rheem said it selected Logility Voyager Demand Planning, Inventory Planning and Replenishment Planning to better predict future demand, synchronize inventory investments and provide desired service levels. Voyager Demand Planning reconciles demand history, orders, and other information to produce overviews of demand by item, location, customer and/or group.

Logility said Voyager Inventory Planning calculates the optimal balance between inventory quantities and desired levels of service based on industry best practices. Voyager Replenishment Planning determines the best balance between customer service levels and inventory requirements, factoring in current orders, commitments and desired inventory investment.

"We are pleased by the opportunity to help Rheem drive even greater benefits with Logility Voyager Solutions during this new supply chain initiative," said Mike Edenfield, president and CEO of Logility. "Better forecasting accuracy and distribution planning can help Rheem more cost-effectively synchronize its supply chain to further increase customer service while improving inventory turns."