ToolsGroup First to Benchmark and Control Inventory Optimization Introduces a New Parallel Simulator That Mirrors the Distribution Network

BOSTON and PHILADELPHIA--Oct. 4, 2004--Today at the Council of Logistics Management (CLM) 2004 Conference in Philadelphia, PA, ToolsGroup, the leading inventory optimization software provider for distribution-intensive businesses, announced a new breakthrough module, the Parallel Simulator, for benchmarking, monitoring and controlling a business's inventory optimization process.

One of the major hurdles in optimizing inventories is going beyond identifying inventory targets to delivering operational results and maintaining long-term success. Until now, achieving these goals was hampered by the difficulty of connecting supply chain actions (such as ordering too much inventory) to the resulting event (such as an overstocked product). Connecting the cause and effect was obscured by multiple echelons in the supply chain and by time delays. It often took several weeks to identify the implications of a supply chain action, event or disruption.

ToolsGroup's new Parallel Simulator solves this problem by creating a mirror image of the distribution network. Running a parallel event simulation of the distribution chain allows the user to both identify disruptions in the actual supply chain and tie them back to their root cause.

The solution measures and compares the performance of the "actual" inventory replenishment process against an "ideal process". It provides detailed analysis of discrepancies down to the SKU level. When results are off-target, the simulator delivers pinpoint troubleshooting. This permits a unique benchmarking and control of the inventory planning and optimization processes.

"The bottom line is that our customers want to insure that their inventories are optimized for the long term," said Joseph Shamir, CEO of ToolsGroup. "They want make sure their supply chains remain calm and minimize disruptions. We consider it a necessary part of a total inventory optimization solution."

The module is available to all customers using ToolsGroup's DPM inventory optimization product. The Parallel Simulator is now fully operational in two large consumer goods companies, one in the United States and one in Europe.

About ToolsGroup

ToolsGroup provides inventory optimization software solutions for distribution-intensive businesses. Its powerful analytics solution optimizes distribution chain inventory, from finished goods assembly to the end consumer, and from strategic network design to daily operations. It allows supply chain managers to meet demanding service levels, while reducing inventory and operating costs. With more than 70 customers in 28 countries, it is the most experienced inventory optimization software provider worldwide. For more information on ToolsGroup and its solutions, please visit www.ToolsGroup.com.