Report Inventory Ion 2003

Inventory Optimization Tools 2003 An overview of the vendors, developments and trends in the Dutch Inventory Optimization market

Cap Gemini Ernst & Young B2B Supply Chain service line

Inventory Optimization Tools 2003 An overview of the vendors, developments and trends in the Dutch Inventory Optimization market

Utrecht, September 2002 ir. R.J.G.M. Lenders MTD drs. ing. L.F.A. van Zundert CPIM Cap Gemini Ernst & Young B2B Supply Chain service line

Cap Gemini Ernst & Young Netherlands, B2B Supply Chain service line

Contents

1

Introduction

3

2 2.1 2.2

Profile of the Inventory Optimization market space Overview CGE&Y’s opinion

4 4 5

3 3.1 3.2

The differences per industry Overview CGE&Y’s opinion

7 7 8

4 4.1 4.2

Who are the dominant players on the Dutch Inventory Optimization market? Overview CGE&Y opinion

9 9 10

5 5.1

The most important developments in the last 3 years Overview

11 11

6 6.1 6.2

The most important trends for the coming 3 years Overview CGE&Y opinion

13 13 14

7 7.1

Differentiators of Inventory Optimization software vendors Overview

16 16

8 8.1

Inventory optimization functionality comparison Overview

18 18

9 9.1 9.2

Cap Gemini Ernst & Young – Your partner in supply chain projects Introduction CGE&Y – The premier partner in supply chain package selections

21 21 21

10

Participating Inventory Optimization software vendors

22

Cap Gemini Ernst & Young Netherlands, B2B Supply Chain service line

3

1

Introduction

This report contains an overview of the leading Inventory Optimization software vendors in the Netherlands. It discusses the developments that have occurred in the last three years and analyses the trends for the coming three years. It also analyses Inventory Optimization tool penetration in different industries and discusses the differentiators in the market. Inventory Optimization functionalities consists of all methods and functions which can be used for efficient and effective inventory management. Inventory management has the goal of minimizing inventory costs while maximizing customer service levels. Inventory Optimization tools contain functionalities like: • Calculation of optimal safety stock levels based on customer service level parameters • Calculation of ABC classifications • Determination of the best ordering methodology (including reorder points and order sizes) • Best before date management and optimal lot size calculations • Analysis for stock / non-stock decisions • Dynamic safety stock level management We have only included specialized Inventory Optimization software vendors and not the more general ERP software vendors which also have functionality for inventory optimization. This report is part of a series of reports published in 2002 / 2003 around different categories of standard supply chain software packages. Reports have been published or are planned around the following software categories: 1. Warehouse Management Systems (WMS) 2. Product Lifecycle Management (PLM) 3. Advanced Planning Systems (APS) 4. Transport Management Systems (TMS) 5. Supplier Relationship Management (SRM) 6. Manufacturing Execution Systems (MES) 7. Supply Chain Event Management (SCEM) / Visibility software For this overview CGE&Y prepared a short questionnaire which was distributed to all Inventory Optimization software vendors in the Dutch marketplace. The results from the overview were consolidated and analyzed by professionals from CGE&Y. Also CGE&Y supply chain professionals have provided their input, analysis and market views for this report. Many thanks to the Inventory Optimization software vendors who have participated in this overview.

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2

Profile of the Inventory Optimization market space

2.1

Overview

The Inventory Optimization Tool marketplace is clearly a niche market since all software vendors which are present on this market also deliver other software components (like Forecasting, Supply Chain Network Design, ERP, Retail software or APS). Indeed, it is interesting to see that all of the Inventory Optimization software vendors also deliver forecasting software which is often closely linked to the Inventory Optimization functionalities (optimization of inventory levels based on future forecasting data). Notable exception to this is Logic Tools which does not deliver a forecasting tool. Logic Tools however also delivers Supply Chain Network Design software, just like Manugistics and Tools Group (through a partnership with Radical). For this report we consider software vendors which deliver forecasting or supply chain network design software next to their inventory optimization tool specialized inventory optimization vendors. Software vendors which also deliver ERP, APS or retail software will be considered separately in this report. The largest specialized vendor in the Netherlands in terms of number of employees is Infolog, followed by A3 forecast solutions, Finmatica Mercia, Toolsgroup and Demand Solutions. “Broader” software vendors are Ross Systems (which also delivers ERP software), Manugistics (which also delivers APS software), OM Partners (which also delivers APS software) and JDA (which also delivers Retail software). Ross Systems has formed a partnership in 2002 with Prescient Systems (a US APS software vendor) in which Ross Systems delivers the Prescient XEi solution as their iRenaissance SCM solution. In the table below the Inventory Optimization software vendors are ranked according to the number of employees in their Dutch organization.

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Number of employees Vendor Name Package Name NL EUR WW Infolog Slim4 15 25 35 A3 forecast solutions A3 5 25 30 Finmatica Mercia MerciaLincs 5 1000+ 1200+ Toolsgroup DPM (Distribution Planning Model) 4 42 43 Demand Solutions DS Requirements Planning 1 15 120 FuturMaster FuturMaster Planning 0 20 20 Inventory Management Associates IMA Visual Planning 0 8 10 Logic Tools Inventory Analyst 0 0 25 Wizard Information Systems Optimiser Vendors of functionalities broader than Inventory Optimization alone Ross Systems / Prescient Systems iRenaissance SCM / Prescient XEi 40 200 450 Manugistics NetWORKS Fulfillment 16 220 1350 OM Partners OMP Supply Chain Suite 5 80 80 JDA Software Portfolio 1 300 1600 Table 1: number of employees per Inventory Optimization software vendor

If we look at the number of implementations in the Netherlands of the inventory optimization modules then there is one clear winner: Infolog with their Slim4 solution. Infolog is followed by A3, Finmatica Mercia and JDA (JDA bought the E3 company in 2001). Number of implementations Package Name NL EUR WW Slim4 120 140 148 A3 18 56 56 MerciaLincs 8 220 350+ DPM (Distribution Planning Model) 1 145 152 IMA Visual Planning 1 55 65 FuturMaster Planning 1 10 17 Inventory Analyst 0 0 2 DS Requirements Planning 90 1000 Optimiser 60 Vendors of functionalities broader than Inventory Optimization alone Portfolio 1001 1000 4000 OMP Supply Chain Suite 36 282 304 NetWORKS Fulfillment 21 384 1490 iRenaissance SCM / Prescient XEi Table 2: number of implementations per Inventory Optimization software package 1 JDA has 4 implementations of their E3 inventory optimization tool in the Netherlands, 10 implementations of their JDA retail solution and 90 implementations of their Intactix category / space management solution

2.2

CGE&Y’s opinion

With respect to the Inventory Optimization market space we expect the following future developments to occur:

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•

•

•

The market for Inventory Optimization software will grow in the short-term; Despite or maybe thanks to the economic downturn the inventory optimization software market will grow because companies are focusing on reducing costs (f.e. inventory levels) and increasing efficiency. Many companies have implemented large and expensive ERP and APS solutions just to discover that these solutions did not help them to actually improve supply chain efficiency and costs (lower inventory levels, higher delivery reliability etcetera). With much lower costs and effort they can now implement inventory optimization software which can actually deliver the results that were originally expected from the massive ERP and APS implementations. The large ERP vendors will expand their inventory optimization (and forecasting) functionalities; Traditionally ERP vendors have provided limited support both for forecasting and for inventory optimization functionalities. Nowadays some of the ERP vendors offer extensive forecasting functionalities but inventory optimization functionalities are still lacking in almost all ERP systems. Even if these functionalities are present then mostly the way of working and user interface for these functionalities is very cumbersome. However, since these functionalities form the basis why many companies look for new ERP systems in the first place and since many companies are focusing right now on cost and operation efficiency we do expect that ERP vendors will start working on expansion of their forecasting and inventory optimization functionalities so that their customers can achieve bottom-line benefits when deploying their systems. The market for inventory optimization software will disappear in the long-term; We do believe that the main reason that there is a market for add-on inventory optimization tools is because the ERP vendors forgot to offer decent and user-friendly functionalities for both forecasting and inventory optimization. Independent software vendors have seen this forgotten niche market and have developed inventory optimization tools for the add-on ERP market. However, as we have concluded in our second conclusion in this paragraph we do expect that ERP software vendors will fill this gap in the long term. At that point the existence of these add-on tools for inventory optimization will be endangered.

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3

The differences per industry

3.1

Overview

In the table below the total number of implementations per industry are mentioned for the Inventory Optimization software vendors that participated in this overview (from those who were willing to provide this industry-specific data). By far, the Consumer Products and Wholesale industries are the most important industries for add-on inventory optimization tools in the Netherlands (more than half of the implementations have taken place in these industries). Also the Industrial Manufacturing, Retail and Food & Beverage industries have a decent number of implementations of add-on inventory optimization tools. In Europe also the Consumer Products, Food & Beverage, Retail and Industrial Manufacturing industries are the most important industries for add-on inventory optimization tools. Different from the Netherlands however, the Wholesale industry is less important in the European marketplace (the Netherlands contains a very large number of wholesale companies) while Chemicals, Automotive, Distribution and Pharmaceuticals / Biotech are more important industries for add-on inventory optimization tools. DISTRIBUTION OF INVENTORY OPTIMIZATION Netherlands Europe IMPLEMENTATIONS ACROSS INDUSTRIES Consumer Products 90 (29%) 794 (33%) Wholesale 67 (22%) 142 (6%) Industrial Manufacturing 37 (12%) 275 (11%) Food & Beverage 28 (9%) 335 (14%) Retail 25 (8%) 241 (10%) Chemicals 10 (3%) 149 (6%) Automotive 10 (3%) 110 (5%) High Tech 7 (2%) 51 (2%) Distribution Industry 5 (2%) 115 (5%) Pharmaceuticals / Biotech 4 (1%) 116 (5%) Energy & Utilities 3 (1%) 11 (0%) Engineering & Construction 2 (1%) 2 (0%) Public Transport 0 (0%) 0 (0%) Other Industries 20 (6%) 94 (4%) Table 3: distribution of Inventory Optimization implementations across industries

In the table below you can see the number of implementations per package per industry. It is clear to see that no vendor specializes in any industry but that all inventory optimization vendors deliver their solutions to all kinds of industries.

Cap Gemini Ernst & Young Netherlands, B2B Supply Chain service line

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INDUSTRY Consumer Products Food & Beverage Retail Distribution Industry Wholesale Energy & Utilities Public Transport Industrial Manufacturing Automotive High Tech Pharmaceuticals / Biotech Chemicals Engineering & Construction Other Industries

NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR

A3 forecast solutions

Manugistics

16 50

7 71 5 124 2 25

1

36

Inventory Mgt Associates

Toolsgroup

10

1

8

26 1 7

Finmatica Mercia

JDA Software

12

2 34 2 44

2

2

60 600 10 100 20 200 5 50 5 50

3 16

Demand Solutions

FuturMaster

13 12

1 7

9

1 2

3 18 3 14 1 25

2

25 34

1

5

5

2

34

5

8 2 29

26 1 5 1 48 2 30

33

26

5 12

1 10

4 4 3 3 2 3

8 11 4 7 5 8 2

14 2 20

OM Partners 1 11 7 25

61 69 3 4

7

1 2

Infolog

10 5

9

26 222

9 4 9 2 2 20 20

4 2 40

Table 4: number of implementations per Inventory Optimization tool per industry

3.2

CGE&Y’s opinion

With respect to the specific industries we expect the following future development to occur: • The emergence of vendors which only focus on the (semi)process industry; A common phenomenon in business applications is that when the specific application market becomes mature that the software vendors are going to focus on specific industries to obtain a better competitive position. In the case of the inventory optimization market the total market is very small because the market for add-on inventory optimization tools is still a very niche market. The only industry for which specialization would make sense is the (semi)process industry (Food & Beverage, Chemicals, partly Consumer Products) because this industry comprises approximately 41% of the current Dutch and 53% of the current European inventory optimization tool marketplace. Inventory optimization tool vendors which focus on the (semi)process industry will therefore get an increased competitive position in approximately 45% of the total market (while probably neglecting the other 55% of the total market).

Cap Gemini Ernst & Young Netherlands, B2B Supply Chain service line

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4

Who are the dominant players on the Dutch Inventory Optimization market?

4.1

Overview

We have asked the inventory optimization software vendors for their top 3 competitors. We also asked them which consultancies they mostly encountered during package selections and implementations in the inventory optimization market space (each vendor had the chance to name three consultancies). Top inventory optimization software vendors Apparently competition in the inventory optimization market is very limited since most software vendors did not name any competitors at all. However, Infolog, Demand Solutions, SAP, i2 Technologies and Manugistics are considered the most important players on this market closely followed by Finmatica Mercia. Inventory optimization software vendors Number of times mentioned as a competitor Infolog 2 Demand Solutions 2 SAP-APO 2 I2 Technologies 2 Manugistics 2 Finmatica Mercia 1 Table 5: top competitors in the Dutch inventory optimization market space as ranked by fellow software vendors

Consultancies involved in inventory optimization package selection The same situation is applicable for consultancies involved in package selection projects for inventory optimization software. Some vendors even replied that they never encountered consultancies during inventory optimization tool selections. PWC seems to have some lead but is closely followed by other leading consultancies in the supply chain field like Cap Gemini Ernst & Young, Atos KPMG, Atos Origin, Accenture, Ordina and Deloitte. Also niche consultancy Mobius was mentioned once.

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Consultancies involved in inventory optimization package Number of times mentioned selection PriceWaterhouseCoopers (PWC) 2 Cap Gemini Ernst & Young (CGE&Y) 1 Atos KPMG 1 Atos Origin 1 Accenture 1 Ordina 1 Deloitte 1 Mobius 1 Table 6: consultancies involved in inventory optimization package selection projects as ranked by software vendors

Consultancies involved in inventory optimization package implementation Consultancies are seemingly hardly involved in implementations of inventory optimization tools. Only PWC, CGE&Y, Accenture and Atos Origin are sometimes encountered by the inventory optimization tool vendors. Consultancies involved in inventory optimization package Number of times mentioned implementation PriceWaterhouseCoopers (PWC) 1 Accenture 1 Cap Gemini Ernst & Young (CGE&Y) 1 Atos Origin 1 Table 7: consultancies involved in inventory optimization package implementation projects as ranked by software vendors

4.2

CGE&Y opinion

With respect to the Dutch inventory optimization market we expect the following future development to occur: • Consultancies will not try to penetrate the inventory optimization tool market; At the moment the larger consultancies are only seldom involved in inventory optimization tool selections and implementations. We do not expect that this will change. The inventory optimization tool market is a very small and niche market so it makes no sense for the large consultancies to invest in this market. Also as we have seen in chapter 2 we expect that this market will disappear in the long term because we do expect that ERP vendors will increase their functionalities for forecasting and inventory optimization in which case separate add-on inventory optimization tools will become unnecessary.

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5

The most important developments in the last 3 years

5.1

Overview

We have asked all inventory optimization software vendors what they thought were the most important developments during the last three years. In this paragraph we will analyze these most important developments. The most important developments have been: • Vendor Managed Inventory (VMI); VMI between pairs of trading partners seems to be the most important development in inventory optimization during the last 3 years. This includes basic collaboration between the trading partners in setting and managing service level targets and inventory targets. To manage these targets often inventory optimization software is used. • Service level and demand driven inventory optimization; In many companies inventory optimization is still done on “standard” inventory algorithms like the (s, Q) or (s, S) models. In the (s, Q) model an order with size Q is created after the inventory level reaches a value below s. In the (s, S) model an order of size (S – current inventory level) is created after the inventory level reaches a value below s. In the last few years however many companies have switched to more advanced inventory optimization algorithms like service level and demand driven inventory optimization. In service level driven inventory optimization one can set the required service levels per customer – article number and the system automatically optimizes inventory levels to achieve the required service levels. In the demand driven model the system dynamically calculates the required safety stock levels based on the future demand. In this model dynamic safety stock levels will result because customer demand is variable (and thus average demand and demand variability varies). These more advanced inventory optimization models cannot be supported anymore by manual inventory management or spreadsheetlike inventory management systems. Hence the rise of inventory optimization tools to support these more advanced inventory optimization models.

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Developments during last 3 years Number of times mentioned GENERAL DEVELOPMENTS WITHIN MARKET Best-of-breed philosophy instead of wanting all functionality from one 1 vendor Inventory has been neglected in the last few years 1 Big investments in SCM tools together with new/upgraded ERP systems 1 Focus on reduction of working capital 1 Large number of SKU’s (>100.000) from stock 1 INVENTORY OPTIMIZATION FUNCTIONALITY Vendor Management Inventory (VMI) including basic collaboration on 3 service level / inventory targets Service level driven inventory optimization 1 Demand driven inventory optimization 1 Collaborative planning with customers 1 Inventory management through integral supply chain network optimization 1 Management by exception 1 1 Bayesian analysis of historical data now allows the subjective input of forecast uncertainty, allowing intervention to stock levels to be incorporated into the statistical model without ‘expert’ mathematical knowledge 1 Improvements to the basic ‘Croston’ method of handling slow and sporadic moving items to allow these items to be managed as part of the same process as the ‘fast movers’ TECHNICAL DEVELOPMENTS Internet enabled version of the software 1 Table 8: developments in inventory optimization market during the last 3 years as mentioned by software vendors

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6

The most important trends for the coming 3 years

6.1

Overview

We have asked all inventory optimization software vendors what they thought to be the most important trends for the coming 3 years. In this paragraph we will analyze these trends. In general the inventory optimization software vendors feel that most trends are general developments within the supply chain market and only a limited number of trends are taking place in the area of inventory optimization functionality. This would suggest that most inventory optimization software vendors feel that their inventory optimization software suite is very mature and that little functional developments are necessary to further enhance their software suite. The most important developments as mentioned by the inventory optimization software vendors are: • Rationalization of supply chain networks; Many companies are currently evaluating and rationalizing their supply chain networks. The inventory optimization software vendors think that this supply chain rationalization trend will continue for the next 3 years. • Trend for easily implementable solutions with fast Return-On-Investment (ROI); Large supply chain projects with long implementation times are “OUT”. The trend is on easy solutions which can be implemented very fast and which can yield an immediate return on investment. • Trend for inventory optimization point solutions; Inventory optimization software vendors feel that many companies are looking for point solutions for inventory optimization in addition to their existing ERP / financial systems. We certainly agree with this trend in the short term but we expect that ERP systems will expand into inventory optimization functionalities in the long term.

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Most important trends coming 3 years Number of times mentioned GENERAL DEVELOPMENTS WITHIN MARKET Centralization with hubs / rationalization of supply chain networks 3 Quick implementation and Return-On-Investment (ROI) required 2 Best-of-breed selection, utilizing existing ERP/financial software 2 4PL Logistics 1 Functionality and proven track record more important than latest 1 technology Focus on customer service improvement 1 INVENTORY OPTIMIZATION FUNCTIONALITY Collaborative Forecasting and Promotions Planning 1 Vendor managed inventory (VMI) 1 More sophisticated analysis of past events (especially product 1 launches and promotions) Advanced probability distributions that will improve performance at 1 the extremes of demand More sophisticated collaboration across the entire supply chain 1 looking beyond a service level of xx% and more towards a reduction in the cost of servicing the remaining 100 minus xx% demand TECHNICAL DEVELOPMENTS None None Table 9: future developments in inventory optimization market as mentioned by inventory optimization software vendors

6.2

CGE&Y opinion

With respect to the future developments in the inventory optimization market we expect the following main future developments to occur: • Inventory optimization as a separate application category will disappear and will become integrated with the forecasting application category; Almost all inventory optimization software vendors also deliver forecasting software. This is not surprising since inventory optimization and forecasting are closely linked (determining inventory levels based on forecasting data). However not all forecasting software vendors are also delivering inventory optimization software at the moment (CGE&Y’s estimate is that approximately 50% of the forecasting software vendors also deliver inventory optimization software). We do expect however that these two application categories will integrate in the future. • Real-time dynamic planning; Almost all inventory optimization tools are currently used on a periodic basis. In future supply chains CGE&Y expects that companies become adaptive players which will react to events on a real-time basis (CGE&Y’s vision is called “The Adaptive Enterprise®” and “The Adaptive Supply Chain®”). We therefore expect that inventory optimization tools in the future will not be stand-alone applications which are used on a periodic basis but will become completely integrated with the companies other supply chain applications. Since

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•

the customer environment can be very volatile the largest efficiency can be obtained by decreasing the reaction time to these changing customer needs. Integration with supply chain event management or visibility applications; Another application category in the supply chain area which has gained substantial traction during the last few years are supply chain event management applications (also called visibility applications). These applications allow companies to follow their inventory across a complete supply chain network (own facilities, during transport, at customer sites etcetera). These applications also allow companies to react on specific events in the supply chain (f.e. because the ship that needs to arrive in harbour A is a few hours late, the truck that is planned to pick-up the shipment at the harbour must be delayed). Because we expect that inventory optimization tools will be required to support real-time dynamic planning situations it will also be necessary that these applications will be integrated with supply chain event management type applications.

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7

Differentiators of Inventory Optimization software vendors

7.1

Overview

We have asked the inventory optimization software vendors for their competitive differentiators. The following competitive differentiators have been named by multiple inventory optimization software vendors: • Speed and cost of the implementation (quick return on investment); Most vendors feel that the speed and cost of implementation (and the associated quick return on investment) is their primary competitive differentiator. • Ease of use; Another competitive differentiator which is often cited is the ease of use of the application. Many vendors have tried to develop their application in such a way that end users can use the inventory optimization tool without extensive knowledge of the underlying statistical and mathematical models. • Implementation expertise; Many vendors differentiate themselves on the expertise of their consultants in doing inventory optimization projects. Since the results of inventory optimization projects are easily measured (lower inventory levels, higher customer service levels) and since many inventory optimization projects start with pilots to measure the actual benefits of the new solution one can imagine that inventory optimization tool vendors indeed invest in senior consultants which have much knowledge about inventory optimization. • Integration between inventory management and forecasting; Many vendors believe that the fact that their application contains both inventory management and forecasting functionality (in an integrated way) is a competitive differentiator against the other software vendors in this market space.

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Most important differentiators Number of times mentioned GENERAL VENDOR ASPECTS Speed and cost of the implementation (quick return on investment) 8 Ease of use (no extensive statistical and mathematical knowledge from 5 the end user required) Implementation expertise 3 Depth of functionality 2 Functionality based on user requirements 2 Strong orientation on vertical market segments 1 High customer satisfaction levels 1 Filling software ‘gaps’ in current supply chain systems and providing 1 analytical tools to improve current performance Application is used across industries 1 Highly automated and self tuning 1 After-sales support services 1 Integrated suite of applications 1 Flexible tool 1 INVENTORY OPTIMIZATION FUNCTIONALITY Inventory management is integrated with forecasting 3 Optimization functionality 2 Configurable safety stock calculations based on a required level of 2 customer service Service planning capability 1 Frequency based forecasting 1 Easy and quick what if scenario planning possible, enabling the user to 1 manipulate planning criteria Determination of production policy (e.g. MTO, MTS) taking into 1 account several supply chain parameters TECHNICAL POSSIBILITIES Multidimensional database 1 Graphics interface 1 Reporting – both tabular and graphics 1 Table 10: competitive differentiators as mentioned by inventory optimization software vendors

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8

Inventory optimization functionality comparison

8.1

Overview

There are quite some functionality differences between the different inventory optimization tools. Only Optimiser (from Wizard Information Systems) does not support multiple warehouses. A3 (from A3 forecast systems) does not support hierarchical distribution structures. Frequency distribution determination and ABC analysis are also not supported by A3. Automatic determination of the best ordering methodology is the less supported functionality among the inventory optimization tools; both A3, DS Requirements Planning (from Demand Solutions), iRenaissance SCM (from Ross Systems / Prescient Systems) and Optimiser do not support this. What-if scenario modeling is not supported by A3. Both best-before-date management and price breaks are not supported by A3 and Optimiser. Functionality Support for multiple warehouses Support for hierarchical distribution structure (f.e. central warehouse with local satellites) Automatic determination of the frequency distribution based on the historic sales pattern per article number ABC analysis Customer service level forecasts are supported which optimise safety stocks and minimize inventory levels and carrying costs for any level of customer service you specify Automatic determination of the best ordering methodology Automatic generation of purchase order quantities and purchase order dates (including pulling forward or pushing backward existing purchase orders) What-if scenario modelling is supported Support for best-before-dates management in the calculation algorithms (considering expiry dates)

1 2 3 4 5 6 7 8 9 10 Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes

11 -

12 13 Yes Yes Yes Yes

Yes Yes Yes Yes

-

Yes Yes

No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

-

Yes Yes Yes Yes

No

No

Yes Yes Yes Yes

Yes No Yes Yes / No Yes Yes Yes Yes Yes

-

-

No

No

-

Yes Yes

-

Yes Yes Yes Yes

-

Yes Yes

No

Yes Yes Yes Yes Yes Yes Yes Yes Yes

-

Yes Yes

No

Yes Yes Yes Yes

-

Yes Yes

-

Cap Gemini Ernst & Young Netherlands, B2B Supply Chain service line

Yes Yes

Yes Yes Yes

No

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Functionality 1 2 3 4 5 6 7 8 9 10 11 Price breaks by item / supplier can No Yes Yes Yes Yes Yes Yes No be defined + used in inventory optimization Yes Yes Yes Yes Yes Yes The following constraints can be setYes No Yes up: Yes Yes Yes - Minimum value purchase order - Minimum shelf quantity Standard reports on: Yes Yes Yes Yes - Expected height unmarketable Yes No No Yes articles Yes Yes Yes Yes Yes - Inventory levels projection Table 11: functionality comparison between inventory optimization software vendors Nr 1

Application name A3

2

DPM (Distribution Planning Model)

3

DS Requirements Planning

4 5 6

FuturMaster Planning IMA Visual Planning Inventory Analyst

7 8

iRenaissance SCM MerciaLincs

Yes Yes

• •

Ability to determine optimal committed service time Ability to determine works for consolidation and assembly

•

Comprehensive reporting and analysis to identify and control both under-stocked and over-stocked items Support for S&OP process to monitor inventory and service performance against plan Stock/Non-stock analysis Evaluation of alternate resource to service customer demand (for example – is it cheaper to occasionally rush items by premium freight than to hold higher stocks locally?) Support to collaboratively interact with inventory levels with supply chain partners via the internet Inventory rebalancing (is there too much inventory in one location and a potential shortage in another?) Customer specific statistical safety stock algorithms Safety stock templates

• • • • NetWORKS Fulfillment

Yes Yes

Other functionalities supported • Dynamic safety stock based on forecast accuracy, replenishment time and desired service level • Size break down calculation for articles in multiple sizes • Lot size optimization • Management of supplier reliability factors • Rough Cut Capacity Planning • Primary Transportation Planning • Performance summary with ABC classification for quick and easy what if comparisons • Supports BOM (kits etc.) up to 99 levels • Export functionality, all data can be exported easily • Ability to set inventory logic by ABC classification • Plan safety stock, safety time or combination per item/vendor • Level orders by weight, units, volume • Identify items requiring action as a result of deviation from planned tolerances

•

9

12 13 Yes Yes

• •

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10 11 12

13

Optimiser Portfolio Slim4

• •

Seasonal safety stock building Capacity and load consolidation

• • • • • •

Management by exception based on urgency Expedite and de-expedites of existing orders Supporting stock/non stock management Reporting on risk for obsolescence Check order book versus forecast and availability Special functionality to support for super slow moving items and spare parts OMP Supply Chain Suite • Define the most suitable product policy (make to order – make to stock) Table 12: legend for table 11 and list of other supported functionalities

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9

Cap Gemini Ernst & Young – Your partner in supply chain projects

9.1

Introduction

Cap Gemini Ernst & Young (CGE&Y) is the largest management consultancy in the Benelux, Europe and worldwide. Within our worldwide organization we recognize the service line B2B Supply Chain Management which contains the following service offerings: • Sourcing and eProcurement • Manufacturing and Operations • Logistics and eFulfillment • Supply Chain Strategy • Demand and Supply Planning • Product Lifecycle Management • Asset Lifecycle Management • B2B Marketplaces 9.2

CGE&Y – The premier partner in supply chain package selections

Our package selection consultants all have multi-year experience with package selection projects. They know the supply chain software market and know the main differentiators of each vendor. All our package selection consultants use our award-winning ERNIE software selection tool. This tool contains, among others, a detailed database on all the vendors present on the Dutch (and European) market within specific software categories. We have ranked these vendors against detailed critical functional requirements lists which we have developed based on our worldwide experiences with package selections in these software categories. For information regarding our package selection services and our supply chain services please contact CGE&Y on +31 (0)30 689 8845 or through e-mail on [email protected].

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10

Participating Inventory Optimization software vendors Company name Address Postal code and city Contact person Application name Version number

A3 forecast solutions B.V. Postbus 98 3640 AB MIJDRECHT Mr. Z. de Baat A3 3.1

Company name Address Postal code and city Contact person Application name Version number

Demand Solutions (Europe) Rippingstraat 2 2651 EZ BERKEL EN RODENRIJS Mr. R. van der Heiden DS Requirements Planning DSRP 8.4

Company name Address Postal code and city Contact person Application name

Finmatica Mercia Siriusdreef 17-27 2132 WT HOOFDDORP Mr. S. Tonks MerciaLincs

Company name Address Postal code and city Contact person Application name Version number

FuturMaster 257 avenue Le Jour se Lève 92100 BOULOGNE – FRANCE Mr. J.R. Gard FuturMaster Planning 4.50

Company name Address Postal code and city Contact person Application name Version number

InfoLog Benelux B.V. Keulenstraat 8D 7418 ET DEVENTER Mr. E. van Dijk Slim4 3.1

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Company name Address Postal code and city Contact person Application name Version number

Inventory Management Associates Limited Peachey House Bepton Rd GU28 0JS MIDHURST W SUSSEX - UK Mr. T. Dear IMA Visual Planning 3.8

Company name Address Postal code and city Contact person Application name Version number

JDA Software Churchill Court, Hortons Way TN16 1BT WESTERHAM, KENT - UK Mr. P. Carter Portfolio 2003.1

Company name Address Postal code and city Contact person Application name Version number

LogicTools Inc. 35 Corporate Drive 4th floor MA 01803 BURLINGTON - USA Mrs. E. Simchi-Levi Inventory Analyst 1.0

Company name Address Postal code and city Contact person Application name Version number

Manugistics Marcel Thirylaan 79 B-1200 BRUSSELS – BELGIUM Mr. R. van Delden / Mrs. A. Roelandts NetWORKS Fulfillment Version 7

Company name Address Postal code and city Contact person Application name Version number

OM Partners N.V. Michielssendreef 39-48 B – 2930 BRASSCHAAT – BELGIUM Mr. W. Blondeel OMP Supply Chain Suite Version 4

Company name Address Postal code and city Contact person Application name Version number

Ross Systems Nederland B.V. Postbus 2817 3500 GV UTRECHT Mr. J. Steenbakkers iRenaissance SCM Version 4.50

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Company name Address Postal code and city Contact person Application name Version number

Toolsgroup Weesperstraat 118 1112 AP DIEMEN Mr. P. Kelly / Mr. R. Wallis DPM (Distribution Planning Model) Version 4.1

Company name Address Postal code and city Contact person Application name Version number

Wizard Information Systems B.V. Pioenroosstraat 26 5241 AB ROSMALEN Mrs. G. Marques Optimiser 1.62

Cap Gemini Ernst & Young Netherlands, B2B Supply Chain service line