SeeCommerce Enables Manufacturers to Eliminate Consignment Inventory Write-Downs and Shortages
PALO ALTO, Calif.--Sept. 7, 2004--| SeeChain 5.0 Manages Off-Site Inventory; New Product Has Boosted DaimlerChrysler Inventory Accuracy from 42 Percent to 95 Percent |
SeeCommerce, the supply chain performance management company, today announced SeeChain 5.0, which enables manufacturers to avoid costly overstocks, shortages and financial write-downs that commonly plague consignment inventory programs. SeeChain 5.0 allows businesses to maintain visibility into and manage inventory levels of materials that are maintained off-site at contract manufacturer and supplier locations. In addition, SeeChain 5.0 speeds up supply chain problem root cause analysis and resolution with new visualization capabilities.
DaimlerChrysler Corporation's Mopar Parts Group -- the primary distributor of parts and accessories for all Chrysler, Dodge and Jeep dealerships worldwide -- is currently using SeeChain applications to manage more than 280,000 original equipment service parts, and process over 200,000 dealer order lines per day. Recently, Mopar began using the SeeChain 5.0 Consignment Inventory Module to address offsite storage problems. In just six months, SeeChain has enabled Mopar to improve its inventory record accuracy from 42 percent to 95 percent at over 19 supplier locations. As a result, Mopar has virtually eliminated inventory write offs for lost and missing stock at these locations.
"SeeChain has enabled us to dramatically improve inventory record accuracy for consigned inventory that is maintained at supplier locations," said Jerry Quell, senior manager of inventory management for the Mopar Parts Group. "By bringing difficult to manage off-site materials under the same inventory control system we use for parts stored in our distribution centers, the SeeChain Consignment Inventory Module has allowed us to eliminate inventory write offs for lost and missing stock."
Avoiding Consignment Inventory Surprises
To prevent large and sudden financial write-downs associated with unexpected excess inventory and revenue/market share losses caused by material shortages, the SeeChain Consignment Inventory Module enables companies to bring off-site inventory within the purview of their existing inventory control process. With SeeChain, managers are automatically alerted when performance thresholds for consigned inventory are violated. The SeeChain alert contains links to root cause data that enables managers to address impending shortages or overstock conditions before they can negatively impact business performance. In addition, SeeChain enables enterprises to better forecast demand by correlating and analyzing the impact of variances in actual inventory levels when compared against predefined performance indicators.
"Consignment inventory, when done right, can provide a significant competitive advantage. However, without the proper controls it can create unexpected and staggering liabilities," said Parviz Hooman, senior vice president of research and development for SeeCommerce. "SeeChain 5.0 provides automated facilities that eliminate much of the risk associated with consignment inventory, while allowing manufacturers to confidently capitalize on this high return business strategy."
Visualizing Supply Chain Problems
To accelerate root cause analysis and problem resolution, SeeChain 5.0 combines performance alerts with a visual representation of the company's internal and external supply chain hierarchy. This capability enables managers to rapidly assess and resolve performance issues by viewing alert details and accessing underlying operational data from the same web browser window.
In addition, SeeChain allows performance alert details - along with dynamic links to the supply chain hierarchy view - to be forwarded directly to authorized users inside and outside the company via email. This allows co-workers and suppliers to instantly view and access, via their email client, performance exception information within the global context of the company's supply chain.
Availability
SeeChain 5.0 with the Consignment Inventory Module is available immediately from SeeCommerce and its business partners worldwide.
About the SeeCommerce Products
SeeCommerce enables business managers and trading partners to manage and continuously improve business performance across complex supply chains. SeeCommerce's industry specific solutions for Retail, CPG (Consumer Packaged Goods), Automotive, and High Tech deliver continuous visibility into supply chain performance and uncover the reasons behind both exceptional and poor performance. Prioritizing these performance exceptions and delivering them to users in context reduces the time required to identify, understand and resolve operational problems from weeks to hours. SeeCommerce solutions create a forward-looking supply chain geared toward continuous improvement.
About SeeCommerce
SeeCommerce is a leading provider of supply chain performance management applications. The company's products enable business managers and trading partners to continuously manage and improve business performance across complex supply chains. SeeCommerce customers are leaders in the Retail, CPG, Automotive, and High Tech industries including BorgWarner, Circuit City Stores, DaimlerChrysler, Flextronics, and Herbalife. Headquartered in Palo Alto, California, SeeCommerce distributes its products through an international network of direct and indirect sales channels. For more information, visit the company's Web site at www.seecommerce.com.
SeeCommerce, SeeChain, and the SeeCommerce design of an eye are registered trademarks of SeeCommerce. Unless otherwise noted, all other trademarks, service marks, and logos are the trademarks, service marks or logos of their respective owners.