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Henkel Consumer Adhesives, Inc. and Optiant Win Supply-Chain Council's Technology Excellence Award

Published on 2005-04-11. Author : SpecialChem

BOSTON and AVON, Ohio -- Henkel Consumer Adhesives, Inc., the marketer of Duck® brand duct tape and many other innovative do-it- yourself products, and Optiant, the leader in supply chain design and inventory optimization, have been recognized for supply chain excellence, winning the Supply-Chain Council's prestigious 2005 Technology Excellence Award.

Henkel and Optiant earned the honor for their efforts in using technology to tackle one of the biggest challenges in consumer goods manufacturing today: reducing inventory costs across a global facilities network while upholding near-flawless service levels mandated by big-box retailers. To reduce working capital and obsolescence risk, Henkel fully exploited the robust capabilities of Optiant's multi-echelon inventory optimization software.

"It has always been challenging to properly answer questions like whether lead-time is really the key driver of inventory, or if we can eliminate expediting freight costs," said Brian Bastock, vice president strategic sourcing, Henkel Consumer Adhesives. "Today, with the help of Optiant's software, we can make data-driven decisions in minutes or hours that drive our profitability, strengthen relationships with retail customers and build our brands with consumers."

The Supply-Chain Council Technology Excellence Awards recognizes world- class performance and contributions in the areas of supply chain management. 2005 is the fifth year the award has been presented.

"Our goal is to recognize companies that demonstrate superior ability to analyze and manage the supply chain," said Scott Stephens, chief technology officer for the Supply-Chain Council. "Henkel's application of inventory optimization and good supply chain management strategies represents the kind of innovation and excellence that are the hallmarks of best practices."

To avoid holding excess finished goods inventory to uphold service level agreements with demanding customers, the Henkel team modeled the supply chains for more than 500 SKUs to quantify various configurations and identify best practices. Using Optiant's PowerChain® software, the team analyzed key business information including lead time, service-level requirements and inventory-holding costs and locations, and linked this critical data to hard- dollar costs.

"Consumer packaged goods manufacturers are under tremendous pressures to offer more and more options at the store shelf while still maintaining near- perfect service levels. This is only exacerbated as supply chains stretch around the world to serve new markets," said Jonathan Colehower, president and CEO of Optiant. "We are extremely pleased to be a partner to Henkel as the company establishes a new industry standard for supply chain performance and wields that performance for competitive advantage."

Henkel and Optiant were honored during a ceremony at the Supply-Chain World-North America Conference & Exposition in Anaheim, California on April 5, 2005.

About Optiant

Optiant is a pioneer in the emerging market of supply chain design and optimization. Optiant's flagship software solution, the PowerChain® suite, enables global organizations to design and configure optimal supply chains, solving real-world problems today. PowerChain determines cost-effective inventory placements and integrates supply chain strategy into sourcing and distribution processes for quantifiable results in less than ninety days. Optiant has proven that intelligent inventory policies improve customer service levels and provide rapid ROI by driving out millions of dollars of associated costs from complex supply chains. Its roster of blue-chip clients, including Global 1000 discrete manufacturers, utilizes Optiant's expertise to design competitive supply chains and innovative inventory policies. PowerChain solutions are built on patent-pending optimization technology based on more than ten years of leading-edge research and industry partnerships at the Massachusetts Institute of Technology. Optiant is a privately held company headquartered in Boston, Mass..

About Henkel Consumer Adhesives

The Henkel Group's North American Consumer Adhesive Businesses include Henkel Consumer Adhesives, Inc. and OSI Sealants, Inc. These businesses develop and market a broad array of products including caulks, sealants, tapes, glues, household and office products for the consumer and professional markets. The Henkel Group's North American consumer adhesives brands include Duck®, Loctite®, and LePage® (for Canada only), and through recent acquisitions, the PL®, Pro-Series®, Polyseamseal® and Painters Mate Green® brands. With more than 50,000 employees worldwide, the Henkel Group generated sales of 10.5 billion euros in 2004.

Source: Optiant

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