Published: October 13, 2005

Intentia Predicts Lean Years Ahead for the Manufacturing Industry

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Global Demand-Driven Supply Networks and IT Investments Pay Off in 2006

Intentia, the global enterprise solutions provider for the manufacturing, distribution and maintenance industries, offers its 2006 outlook for global manufacturers including forward-looking thoughts on the competitive marketplace and future supply chain needs.

Today at the 2005 APICS International Conference, the premier event for global operations management professionals, Intentia experts predict that 2006 will be the year that organizations make great strides in their effort to achieve lean supply chains that will extend beyond the borders of the traditional enterprise. This anticipated success will be driven by the widespread adoption of demand-driven supply networks (DDSN) and the evolution of IT solutions developed to support global commerce.

In today's global marketplace, U.S. manufacturers have to compete and collaborate with the big international manufacturing hubs including China, India, Brazil and the Eastern Europe. To remain relevant, many manufacturers and their supply chain partners are actively building a DDSN to remain competitive by meeting customer demand for product variety, cost and availability.

"In the coming year, manufacturers who have made investments in open architecture will realize the benefits of a demand-driven supply network," said David Ross, Education Business Group Manager of Intentia, CFPIM, and APICS-published author. "DDSNs are focused on orienting the entire supply chain for growth by designing supply chains that are focused around the needs and expectations of the customer. This can only occur when companies operate as lean as possible, deliver at peak efficiency, and possess agile technologies and organizational structures that permit them to effortlessly respond to market changes."

According to AMR Research's benchmarking studies in the consumer products industry, companies that excel at demand forecasting average 15 percent less inventory, 17 percent stronger perfect order fulfillment, and 35 percent shorter cash-to-cash cycle times.

However, managing a global DDSN is complex due to the multiple languages, currencies and regulations required. Many manufacturers have turned to IT solutions to help navigate the maze and simplify demand forecasting within an international supply network.

"In the past, manufacturers primarily purchased IT-support tools to integrate internal processes, cut costs, or gain efficiencies in speed. With these core operations in place, manufacturers are now looking to optimize broader operational functions such as demand forecasting and product lifecycle management," said Ross. "This holistic view of the supply chain network is essential to adopting lean manufacturing. Organizations that want to achieve lean must look to add customer value-adding activities and eliminate waste in every business process."

For more information on Intentia's approach to lean manufacturing, visit http://www.intentia.com/wcw.nsf/pub/lean089F8D for whitepapers, customer profiles and an overview of application support.

About Intentia

Intentia is the only global enterprise solutions provider 100% dedicated to bringing software applications and consulting services to companies whose core processes involve manufacturing, distribution and maintenance -- what we call the "make, move and maintain" market.

--  100% of our resources are committed to this market.
--  100% of our software is designed for this market.
--  100% of our experience is in serving this market.

Intentia customers are typically medium to large organizations that operate in complex supply chains with tough competition and limited internal resources. They require the reliability, experience and security of a substantial supplier with the flexibility and specialist knowledge of their industries and processes.

Intentia solutions are built from the ground up with the specific needs of these customers in mind, and the ability to grow and change easily with their businesses. They simplify complex processes, anticipate customer demands and deliver added value in both the short and long term -- making them the intelligent choice.

Intentia was founded in 1984 and serves over 3,000 customer sites in some 40 countries around the world. Our business solutions currently comprise enterprise management, supplier relationship management, customer relationship management, supply chain management, value chain collaboration, enterprise performance management and workplace management.

Intentia is a public company traded on the Stockholm Stock Exchange (XSSE: INT B). Visit Intentia's Web site at

Intentia

The Intelligent Choice