Ability North America Wins ValuePart Inc.

Business Editors & Technology Writers

ATLANTA--(BUSINESS WIRE)--Feb. 26, 2001

Parts distributor reaps sizeable savings with Ability - Inventory

Optimization

Ability, a leading provider of supply chain optimization software solutions to the distribution industry, has signed its second client in as many months, this time for its innovative Inventory Optimization software.

By adding Chicago-based ValuePart Incorporated (VPI) to the client list, Ability continues its successful foray into the North American distribution market. VPI distributes replacement parts for all major manufacturers of construction and maintenance equipment, including John Deere, Caterpillar, Komatsu, and Case.

"ValuePart selected Ability because its Inventory Optimization software will help us plan better for demand and reduce inventory holdings while improving service levels," said Darlene Steffen, Manager - Administration at VPI. "We expect to reduce the amount of safety stock we hold through increased forecasting accuracy, better management of slow-moving inventory, and improved demand planning."

"VPI needed an accurate, consistent method for forecasting demand," said Jim Byrnes, President of Ability North America. "By improving their planning capability, they will be able to provide more accurate information to manufacturers about demand, thus improving lead-time and reducing inventory levels. The company will also have the ability to test sales and purchasing strategies by running `what-if' scenarios using the system, giving key staff all the information they need to make strategic business decisions."

In addition, VPI will now be able to account for quoted items in the company's forecasting process. VPI regularly has a large number of quotes in its system that have been provided to customers by the sales team. Currently, VPI is unable to account for quotes in its forecast, putting them at risk for back orders and lower service levels. Ability - Inventory Optimization will be customized to account for quoted sales in the demand planning process, allowing VPI to provide even higher availability and delivery rates to customers.

"Ability - Inventory Optimization is a powerful tool for distributors interested in driving revenue and accelerating profitability by streamlining supply chain processes, improving operational efficiencies, and enhancing relationships with customers and suppliers," Byrnes said. "Our focus on the needs of distributors combined with our experience in developing supply chain management software results in an outstanding Ability solution that can be quickly implemented on a Microsoft platform with excellent connectivity to legacy systems such as ERP and CRM applications. We look forward to working with a leading-edge company like VPI."

Ability is a leading provider of supply chain optimization and eCommerce fulfillment software solutions to the distribution industry. Dedicated to providing real-world, tangible results to its customers, Ability offers flexible, scaleable supply chain solutions that are easy to implement, cost-effective to support, and capable of delivering rapid return on investment. Headquartered in Atlanta, GA, Ability is an international organization with 250 employees and 400 customers around the world. For more information, visit www.abilitycorp.com.

Value Part Inc., one of the largest distributors of wear, maintenance and repair parts for construction equipment in North America, is committed to providing the finest quality parts and support services available in the industry today. Value Part Inc.'s 11 distribution centers strategically located throughout North America ensure unsurpassed availability and delivery service. For more information, visit www.valuepart.com.