Tuesday May 8, 10:01 am Eastern Time
Press Release
SOURCE: Manugistics Group, Inc.
Bandag Seeing Fast Return on Investment From Manugistics Supply Chain Solutions
Bandag Sees 'Significant Benefits from Day One'
ROCKVILLE, Md., May 8 /PRNewswire/ -- Manugistics Group, Inc. (Nasdaq: MANU - news), the leading global provider of Enterprise Profit Optimization(TM) (EPO) solutions, today announced that using Manugistics NetWORKS(TM) solutions, Bandag, Inc. (NYSE: BDG - news) -- a premier global supplier of retread products -- has rapidly reduced transportation costs, decreased back orders and inventory swings, and improved forecast accuracy down to the demand forecasting unit (DFU) level.
Bandag has fully implemented a broad suite of Manugistics supply chain solutions across its complex North American network of manufacturing plants, distribution centers and franchised dealers. For the past two years, the solutions have helped Bandag more fully integrate forecasted demand with supply. This past June, Bandag brought live a solution that has centralized and streamlined its outbound transportation planning - helping to optimize the flow of more than 250 million pounds of product.
The benefits have been significant. ``We've been able to reduce back orders by 50 percent this year, while decreasing interplant moves by 23 percent - preventing stock-outs,'' said Greg Harris, Bandag production planning and logistics manager. ``Our inventory swings due to seasonality have also been reduced by more than 10 million pounds even as we've improved our already high level of customer service.''
Harris added, ``Once live, the Manugistics transportation solution produced significant benefits from Day One. We've seen a 19 percent reduction in freight transportation costs - 13 to 14 percent of which come from improved load consolidation. And we expect these transportation savings alone could pay for our entire, broad-based supply chain initiative in less than three years.''
After a lengthy, competitive selection process, Bandag found that Manugistics offered the most complete suite of solutions that could address both the company's short-term tactical needs as well as its longer-term strategic objectives. Next to be implemented is a Manugistics solution that will help Bandag optimize its supply network - which includes optimizing Bandag's product distribution locations and manufacturing product sourcing.
About Bandag, Inc.
Bandag, Incorporated manufactures retreading materials and equipment for its worldwide network of nearly 1300 franchised dealerships, which produce and market retread tires and provide tire management services. Bandag's wholly owned subsidiary, TMS, provides tire management systems outsourcing for commercial truck fleets. TDS, also a wholly owned subsidiary, sells and services new and retread tires.
About Manugistics Group, Inc.
Manugistics is the leading global provider of Enterprise Profit Optimization (EPO) solutions -- the first solutions to simultaneously optimize a company's supply- and demand-side functions. Manugistics EPO and eMarketplace solutions help companies lower operating costs, enhance profitability and accelerate growth. The company's list of clients includes industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Ford, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Texas Instruments, Timberland, Unilever, and United Airlines. For more information, go to manugistics.com . |
