Kia Goes Live with i2's Service Parts Solution

DALLAS--Oct. 17, 2005--i2 Technologies, Inc. , today announced that Kia Motors America (KMA), the U.S. sales, marketing and service arm of Kia Motors Corporation based in Seoul, South Korea, has gone live with i2's service parts solution.

KMA recently implemented i2 Demand Manager to assist in forecasting demand for each part and location. i2 Demand Manager is designed to combine forecasting, rules-based modeling, event-based planning and real-time data visibility with multi-dimensional analysis and editing. The part and location forecasts delivered by i2 Demand Manager drive the creation of inventory and replenishment plans in i2 Service Parts Planner. The resulting improved forecast accuracy can lead to total supply chain costs cuts through a reduction in inventory levels, obsolescence and scrap, and premium freight expense.

KMA is using i2 Service Parts Planner to help generate inventory and replenishment plans for the company's parts distribution centers in the United States. "Service parts operations have become more important to automakers in recent years because they typically produce margins that are disproportionately high relative to the overall business," states Rick Palmer, KMA's manager of Parts, Supply and Logistics. "i2's solution is designed to help companies like us provide the highest possible levels of customer service with the minimum possible levels of labor, physical assets, inventory assets and associated costs."

By using the i2 system, Kia can now generate inventory plans that consider service part characteristics, including volume, price and part importance. Replenishment plans that consider multiple sophisticated techniques including ordering policies, demand prioritization, lot sizing and alternative sourcing are also generated for Kia using the i2 solution. The solution utilizes exception-based workflows that allow Kia's planners to focus their efforts where there is the most value.

"The Kia Service Parts Initiative enables us to continue our focus on enhancing our customer experience and satisfaction while reducing the expense associated with our service parts operations," added Palmer. "Utilization of i2's service parts solution has allowed us to better focus our service parts purchases and increase service levels while reducing transportation and service parts inventory expense."

Kia Motors of America Speaker at i2 Automotive Day

Rick Palmer, manager of Parts, Supply and Logistics at Kia Motors of America, is one of six industry leaders scheduled to speak at the i2 Automotive Industry Day on Thursday, Oct. 20, 2005 at The Tigers Club inside Comerica Park in Detroit, Mich. The complimentary event, which is designed to provide companies information on how technology can help them gain a competitive edge, begins at 11:30 a.m. EDT. To register or learn more about the event, please visit http://www.i2.com/Company/Events/view.cfm?id=747.

Automotive Industry Leadership

i2 Service Parts Planner is part of the i2 Service Parts Management solution that was a finalist for the prestigious 2004 Automotive News PACE Award in the Information Technology and Services category. PACE stands for Premier Automotive Suppliers' Contributions to Excellence. The PACE awards program honors innovation by automotive suppliers in four categories: Product, Product-Europe, Manufacturing Process and Capital Equipment, and Information Technology and Services.

i2 is a leading provider of supply chain management solutions to the automotive industry. Six of the top seven global automotive companies and 11 of the top 12 industrial OEMs are i2 customers.

About Kia

Kia Motors America is the U.S. sales, marketing and service arm of Kia Motors Corp. in Seoul, South Korea. The full line of Kia models including the Sedona minivan, Amanti premium large sedan, Sorento midsize SUV, Optima midsize sedan, Sportage compact SUV, Spectra compact sedan and Spectra5 hatchback as well as the Rio subcompact sedan and Rio5 five-door are available at more than 600 retailers nationwide. For more information, including photography, visit www.kiamedia.com.

About i2

i2 helps business leaders make better supply chain decisions. i2's flexible next generation solutions are designed to synchronize demand and supply across ever-changing global business networks. i2's innovative supply chain management tools and services are pervasive in the industry; 19 of the AMR Research Top 25 Global Supply Chains belong to i2 customers. Learn more at www.i2.com.

i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc.