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TRANSLECTRIC GAINS STRONG ROI WITH VALOGIX INVENTORY PLANNER
Saratoga Springs, NY - June 02, 2006 - Valogix announced today that its customer, Translectric, has achieved considerable results after implementing Valogix® Inventory Planner for inventory planning, optimization and forecasting. In less than three months, Translectric has been able to:
• Reduce inventory by 12%
• Reduce inventory planning time by 85%
• Increase revenue by 10%
• Decrease back-orders by 12%
• Increase inventory turns 13-fold
Translectric, a 38-year old parts distributor for the automotive and heavy equipment industries, decided they needed to improve their inventory planning and replenishment processes. With an inventory of more than 8,000 unique items, they used Excel spreadsheets and years of experience to do planning and replenishment. At the beginning of the year, they placed large inventory orders, holding the inventory in advance of demand. Despite purchasing the large amounts of inventory, the company was plagued by a high number of back-orders, leading to lowered customer satisfaction and decreased revenue from lost sales and high expedited shipping costs.
After purchasing VALOGIX® Inventory Planner through their local SAP reseller, Lowery Systems in conjunction with their SAP® Business One implementation, the entire Valogix implementation took less than one day. Immediately, the user was able to compare the current on-hand inventory value to the Valogix optimized inventory. He was surprised to see the potential to reduce their inventory by hundreds of thousands of dollars and began collaborating with sales and management to develop a plan. Since then, they’ve reduced their inventory by nearly $200,000 by returning stock, canceling outstanding orders and implementing new sales campaigns.
According to Jim Monteith, “One significant benefit from the implementation is to the bottom line – revenue is up 10% from last year, making the purchase of Valogix a wise business investment.”
The company now shares information with their vendors to secure the best pricing and shipping discounts, by using the Valogix system generated forecast. The vendors can now better supply Translectric since they know what will be ordered in advance. On the manufacturing side, they use Valogix to drive the MRP planning to help plan work and purchase raw materials for production. They have been able to significantly reduce back orders, making both the sales team and their customers more satisfied.
Richard Vaccaro, president of Valogix stated, “We are thrilled with the results Translectric has achieved by using VALOGIX Inventory Planner. It is a testament to the fact that we have a solid technology that produces measurable and sustainable results, and our customers are deriving real benefits.”
About Valogix
Valogix develops integrated inventory planning and optimization solutions. The advanced technology systems automatically, forecast future demand, set stocking levels, create replenishment orders, and optimize the inventory. Valogix solutions are easy to use and provide rapid ROI. Dramatic cost reductions, improved productivity, and increased customer satisfaction are benefits received within months of implementation. Products include VALOGIX® Inventory Planner, VALOGIX® Parts Planner, VALOGIX® Retail Planner, and VALOGIX® MultiLink.
The Valogix team has been providing dramatic results to companies worldwide since 1988. Valogix located in Saratoga Springs, NY has representatives in more than 12 countries.
For more information, contact Tom Glacken directly at 410-312-7780 or visit the company web site at www.valogix.com.
About Translectric
Translectric Inc. was established in 1967 by Ray Mirly when he copyrighted a device called “Servicemate.” This device provided emergency electrical power for motor driven tools. Originally this was sold to farmers and farm equipment dealers for resale. Sales eventually migrated to construction equipment dealers for resale. # # #
All products mentioned in this release are trademarks or registered trademarks of their respective holders.
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