Schneider Electric Targets Inventory Optimization

Equipment manufacturer aims to reduce inventory, boost service levels by implementing Optiant solution and redesigning European logistics infrastructure

Equipment manufacturer aims to reduce inventory, boost service levels by implementing Optiant solution and redesigning European logistics infrastructure

Boston — June 30, 2006 — Power and control equipment specialist Schneider Electric has tapped an inventory planning and optimization solution from Optiant as part of an effort to achieve best-in-class service levels while reducing the amount of inventory held throughout six distribution centers (DC).

Schneider Electric manufacturers and sells products, solutions and services for electronic distribution and automation and control in more than 130 countries. Working with the company's supply chain solutions team, Optiant is assisting Schneider Electric as the company redesigns its European logistics infrastructure around six regional distribution centers in Europe.

Through Optiant's PowerChain Suite, Schneider Electric is able to design a more responsive and resilient supply chain to help meet goals for creating a global inventory policy for finished goods, according to Optiant.

Additionally, Optiant's PowerChain Suite will enable Schneider Electric to establish a framework for determining what and how much inventory to stock and where. Optiant said that PowerChain Suite is designed to help global companies with multi-echelon distribution networks achieve higher service levels while simultaneously reducing inventory.

Inventory Reductions

Considering our very complex supply chain, we needed to establish a more-complete methodology to rationalize our decisions on our logistics network, said Philippe Parmentel, manager of supply chain engineering for Schneider Electric. Optiant is helping us optimize the multi-echelon flows of finished products in the European market. By internalizing PowerChain technology, we are able to establish appropriate strategies for each product group and achieve significant cost reductions.

Jonathan Colehower, CEO for Optiant, said, "Our PowerChain Suite supports detailed modeling capabilities and establishes an appropriate strategy for each of Schneider Electric's product groups."

Schneider Electric is an international leader in automation and electricity management, said Gokhan Usanmaz, Optiant's European director of sales and operations. We are pleased to know that our solutions will propel them to the next level of supply chain design and inventory optimization that will result in increased customer service levels and valuable supply chain cost reductions.

Schneider Electric has 92,000 employees and operations in 130 countries. The company generated sales of $14.9 billion in 2005 through 13,000 distributor outlets.

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