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FOR IMMEDIATE RELEASE |
NEWS RELEASE |
Press Contact: Aimee Ortiz, LogicTools
888-265-4706 or Email
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Del Monte deploys LogicTools’ solution suite for analyzing and planning its supply chain
LogicTools suite provides basis for decision support team
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Chicago - April 11th 2005: LogicTools, a leading developer of supply chain planning solutions, announced today that Del Monte, one of the country's largest and most well known producers, distributors and marketers of premium quality, branded and private label food and pet products for the U.S. retail market has deployed the entire LogicTools solution suite.
LogicTools’ integrated suite provides solutions that optimize the supply chain by considering the entire network, taking into account production, warehousing, transportation and inventory costs, as well as service level requirements. The suite includes LogicNet Plus® for network design, Inventory AnalystTM for strategic inventory positioning and optimization and LogicChain® for multi-site production sourcing.
When Del Monte, a long time user of LogicTools’ network design solution, acquired three business units from H.J. Heinz Co. in a deal totaling $1.8 billion, it needed to analyze the cost of transition to a new network. The merger of two businesses typically creates overlap in facilities as well as opportunities for synergies between the different supply chains. Del Monte used LogicTools’ network design solution and services for modeling the baseline and completed due diligence by modeling a number of business scenarios. As part of the new network planning, Del Monte modeled transportation volume and reviewed rate levels versus industry standards. The team also brainstormed for further synergies, such as newly created round-trip or continuous move opportunities. For example, a majority of the Del Monte branded business volume moving eastbound ties in with the former Heinz pet food production moving west.
For the final recommended scenario, Del Monte leveraged LogicChain®, LogicTools’ multi-site production sourcing solution for sizing the Del Monte warehouses and overflow facilities to account for significant production and demand seasonality.
Del Monte is now in the process of creating a decision support group around the LogicTools solution suite. The plan is to use the network design solution for merger integration, strategic distribution analysis and budgeting; the multi-site production sourcing solution for warehouse sizing and production sourcing; and the inventory optimization solution for safety stock positioning and calculation.
"We are very happy with the assistance LogicTools has provided our supply chain decision support team", stated Ron Fingers, Senior Manager Network Optimization at Del Monte. "LogicTools’ solutions are easy to use and provide a sophisticated foundation for supply chain design that we plan to leverage to continue to improve our supply chain performance and work through new business issues. We are in the process of introducing some additional strategic planning initiatives with the help of LogicTools’ effective products and services."
About Del Monte Foods
Del Monte Foods is one of the country's largest and most well known producers, distributors and marketers of premium quality, branded and private label food and pet products for the U.S. retail market, generating over $3 billion in net sales in fiscal 2004. With a powerful portfolio of brands including Del Monte®, Contadina®, StarKist®, S&W®, Nature's Goodness™, College Inn®, 9Lives®, Kibbles 'n Bits®, Pup-Peroni®, Snausages®, and Nawsomes!®, Del Monte products are found in nine out of ten American households. For more information on Del Monte Foods Company (NYSE: DLM), visit the Company's website at www.delmonte.com.
About LogicTools
LogicTools (www.logic-tools.com) a leading provider of supply chain planning solutions was founded in 1995 by David Simchi-Levi, Professor of engineering systems at MIT. LogicTools provides the expertise, software, services and support that enable comprehensive supply chain planning processes in a variety of industries. LogicTools’ suite of supply chain planning solutions includes network design, inventory planning, and multi-site production sourcing. LogicTools is an SAP software partner and Inventory AnalystTM, LogicTools’ inventory planning solution, is "certified for SAP NetWeaver". LogicTools’ customers include General Motors, IBM, Kraft Foods, Ryder System, True Value Hardware, UPS, United States Postal Service, Welch’s, Yankee Candle and many others.
LogicTools has been instrumental in helping companies gain competitive advantage in the market by replacing extremely complex, expensive and customized software implementations on the one hand and limited spreadsheet analysis on the other.
Media Contact
For information contact Aimee Ortiz (888-265-4706) or Email
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