ModusLink announces its next-generation Optimized Configuration Solution for demand-driven supply chains
17 Marzo 2008 - 1:30PM
Business Wire
ModusLink� Corporation, a subsidiary of CMGI�, Inc. (NASDAQ: CMGI)
and leading provider of global supply chain management solutions,
today announced the availability of its next-generation Optimized
Configuration Solution for demand-driven supply chain design.
Developed to improve supply chain productivity and profitability by
identifying the most efficient and cost-effective supply chain
model and inventory strategy possible, the Solution is now
available with a new network optimization and simulation service
designed to enable clients to minimize costs and maintain targeted
inventory levels across the global supply chain. By leveraging
ModusLink�s Optimized Configuration Solution, clients can determine
the best time and place in the supply chain to perform the complete
range of activities required to optimize assembly, configuration
and/or packaging of generic base products or components into a
market-ready state. The new network optimization and simulation
service provides clients the option of using design and modeling
software tools to expedite the analytical process and ensure more
granular and precise evaluation of large amounts of critical data
and operating variables. These robust tools also perform simulation
and testing to predict how well the suggested network design will
perform in real-world environments, resulting in valuable metrics
for inventory levels cycle time and measurement. Proven benefits of
ModusLink�s supply chain design services include: improved speed
and accuracy of analysis, ensuring all cost trade-offs and critical
operating variables are considered for maximum results; detailed,
real-world metrics to facilitate better planning and
implementation; tailored optimization capable of solving specific
challenges and addressing top priorities; comprehensive analysis to
reduce total supply chain costs; and reduced risk of inefficiency
and waste by maintaining a regular schedule of network
optimization. SanDisk, the world's largest supplier of innovative
flash memory data storage products, has been using ModusLink�s
Optimized Configuration Solution since 2001 and recently
implemented the network simulation and optimization service to
further streamline its supply chain design. �By implementing
ModusLink�s Solutions, we were able to globalize our infrastructure
and execute more standardized processes for deferred configuration
and postponement, enabling us to evolve to a highly flexible model
that afforded us better performance,� said Jon Halsey, senior
director customer fulfillment and sales operations for SanDisk. �We
use a hybrid model that enables us to maintain a presence in each
primary region of operation and remain close to our customers,
while delivering an annual reduction of more than 24 percent in
total supply chain spend.� The integrated, end-to-end solution
leverages a combination of core services to synchronize all
elements of the supply chain, including sourcing, materials/content
management, light manufacturing, fulfillment, e-Business, returns
management and asset disposition. �With the addition of ModusLink�s
new network and simulation tools, we are able to offer our clients
an unprecedented view of their end-to-end supply chain
infrastructure that would otherwise be inaccessible,� said Scott D.
Smith, president of worldwide sales and marketing for ModusLink.
�First-hand knowledge of local processes and regulations is
essential to realize the full benefits of this type of tool.
ModusLink applies its expertise to interpret the results and
develop a supply chain strategy that maximizes success for our
clients.� Optimized Configuration Solution The Optimized
Configuration Solution combines ModusLink�s supply chain design
expertise, the industry�s largest global footprint with techniques,
tools and processes in network optimization, discrete event
simulation and inventory optimization to execute a supply chain
network and inventory strategy that can manage the complexities of
global supply and demand. ModusLink designs and executes a more
flexible global supply chain by employing optimization
methodologies such as postponement and deferred configuration that
leverage the best time and place in the supply chain to perform
final configuration, packaging and distribution of products. By
executing these key processes in-region and later in the cycle when
demand is more established, clients can improve time to market,
lower costs and optimize component and finished goods inventory to
better meet global demand. This reduces excess and obsolescence and
minimizes the need for rework if forecasts are inaccurate. Regional
tax treatments can also vary widely between a fully configured,
packaged product and the individual components. Significant savings
can result if managed correctly within the supply chain network.
For further details on SanDisk�s use of ModusLink�s Optimized
Configuration Solution, please see the AMR Research case study
titled �Network Design: SanDisk Uses Smart Postponement to Slash
Costs 60%,� by analyst Stephen Hochman, published January 3, 2008.
The case study can be accessed at www.moduslink.com. For more
information on Optimized Configuration or to register for
ModusLink�s upcoming webcast, Supply Chain Strategies: Configure
Your Way to a Competitive Edge, on April 2, 2008, at 1:00 p.m. EDT,
which will demonstrate the new network optimization and simulation
service and other supply chain strategies, visit www.moduslink.com.
About ModusLink ModusLink Corporation is a leading provider of
global, end-to-end supply chain management solutions. The company
provides technology clients in the software, computing, consumer
electronics, storage and communications markets with customized
supply chain solutions that improve time-to-market, productivity
and customer satisfaction while reducing risk and cost. ModusLink's
services include consulting and planning, sourcing and supply base
management, manufacturing and product configuration, fulfillment,
logistics management, e-commerce and the complete range of
aftermarket services. ModusLink has more than 30 facilities in 13
countries, creating the largest global footprint in the industry.
With headquarters in Waltham, Mass., the company is a subsidiary of
CMGI, Inc. (NASDAQ: CMGI). For additional information, visit
www.moduslink.com. About CMGI CMGI, Inc. (NASDAQ: CMGI), through
its subsidiary ModusLink, provides industry-leading global supply
chain management services and solutions that help businesses
market, sell and distribute their products around the world. In
addition, CMGI�s venture capital business, @Ventures, invests in a
variety of technology ventures. For additional information, visit
www.cmgi.com. This release contains forward-looking statements,
which address a variety of subjects including, for example, the
expected benefits of the Optimized Configuration Solution. The
following important factors and uncertainties, among others, could
cause actual results to differ materially from those described in
these forward-looking statements: ModusLink's success depends on
its ability to execute on its business strategy and the continued
and increased demand for and market acceptance of its solutions and
services, including the Optimized Configuration Solution; ModusLink
may not be able to expand its operations and capabilities in
accordance with its business strategy; ModusLink may experience
difficulties integrating technologies, operations and personnel in
accordance with its business strategy; ModusLink derives a
significant portion of its revenue from a small number of customers
and the loss of any of those customers would significantly damage
its financial condition and results of operations; ModusLink
frequently sells to its supply chain management clients on a
purchase order basis rather than pursuant to contracts with minimum
purchase requirements, and therefore its sales and the amount of
projected revenue that is actually realized are subject to demand
variability increased competition and technological changes in the
markets in which ModusLink competes; and risks associated with
international operations. ModusLink represents a significant
percentage of CMGI's operations and the occurrence of any of the
foregoing factors may have an adverse effect on CMGI�s results of
operations and financial results. For a detailed discussion of
cautionary statements that may affect CMGI's future results of
operations and financial results, please refer to CMGI's filings
with the Securities and Exchange Commission, including CMGI's most
recent Annual Report on Form 10-K. Forward-looking statements
represent management's current expectations and are inherently
uncertain. We do not undertake any obligation to update
forward-looking statements made by us. ModusLink is a registered
trademark of ModusLink Corporation. and CMGI is a registered
trademark of CMGI, Inc. All other company names and products are
trademarks or registered trademarks of their respective companies.
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