CPFR Rapidly Becoming Industry Standard for Business-to-Business Supply Chain Collaboration; Industry Directions and Syncra Systems Survey Reveals Early Success for CPFR Participants.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 30, 2000

Industry Directions, a manufacturing and supply chain industry analyst and consulting firm, and Syncra Systems, Inc., the leader in business-to-business (B2B) supply chain collaboration solutions, today announced the results of a comprehensive study of Collaborative Planning, Forecasting and Replenishment (CPFR) practices. The study, sponsored by Syncra Systems and conducted by Industry Directions, reveals that a majority of companies surveyed are planning or have begun deploying CPFR activities that are enabling them to streamline supply chains, increase sales, and improve service levels.

"We sponsored this study to gain a better understanding of how companies are improving their trading practices and if they are fully using the standards and resources available to them," said Chris Sellers, president of Syncra Systems. "This study will help us continue to develop products and services that provide real benefits to our customers and business partners."

"As it turns out, CPFR is enabling a very positive return on investment in terms of increased sales and more efficient inventory practices," said Julie Fraser, director of market strategies for Industry Directions. "At the same time, CPFR adoption is growing tremendously. Two thirds of survey participants are currently involved in CPFR activities and nearly a quarter of them are conducting pilot projects implementing CPFR-based software or standards."

The CPFR study surveyed manufacturers, retailers, distributors and logistics providers across a broad range of industries, including the consumer goods sector. The objective was to qualify how companies are deploying CPFR practices, what results they are achieving, and where the need for further CPFR education is greatest. The survey respondent base includes a variety of companies ranging in size from less than $100 million to more than $5 billion in revenues. Many of the companies polled are household name retailers and consumer goods manufacturers. Free copies of the study, titled "The Next Wave of Supply Chain Advantage: Collaborative, Planning Forecasting and Replenishment," can be requested at www.syncrasystems.com/surveyresults.

      Highlights of Survey Results

      -- More than 68 percent of respondents are researching, undergoing
       pilots, or preparing to roll out CPFR practices

      -- About 25 percent have a CPFR pilot underway or plan to begin a
       pilot in the next six months

      -- Half of respondents whose forecast accuracy is more than 90
       percent predict that CPFR would improve their trading partners'
       forecasts by at least 20 percent

      -- Pilot projects to date have yielded:

       --An 80 percent increase in business with a CPFR partner
       --More than $9 million in increased sales
       --Simultaneous growth and inventory reductions of at least 10
         percent
       --Improved fill rates with less inventory
       --A 100 percent service level with almost 40 inventory turns a
         year

About Industry Directions

Industry Directions is a hands-on manufacturing and supply chain industry analyst and consulting group. The company offers personalized strategic positioning services and trend reports, covering vertical-specific manufacturing and supply chain practices and IT application solutions with special coverage of the mid-market. The firm enables companies to develop differentiated market positions that leverage core competencies, achieve segment leadership, and take advantage of current and future industry and IT trends. These services include strategic planning for e-business initiatives.

About Syncra Systems

Syncra Systems, Inc. is recognized as a leading provider of B2B supply-chain collaboration solutions based on the industry-standard Collaborative Planning, Forecasting and Replenishment (CPFR) guidelines. Syncra Systems' products feature a web-based, many-to-many architecture that enables trading exchanges, manufacturers, distributors, logistics services, and retailers to collaborate with their trading partners to optimize inventory positions and improve customer service levels, either directly or through trading exchanges. Syncra Systems has been an active participant in the development of the CPFR guidelines, along with leading consulting, manufacturing and retailing organizations, including: Andersen Consulting, Procter & Gamble, Kimberly-Clark, Kmart, Nabisco, NCR, Kurt Salmon Associates, and Warner Lambert. The company has offices in Cambridge, Mass., Chicago, and London that are complimented by a global network of consultants and resellers. Syncra Systems can be found on the web at http://www.syncrasystems.com.

Syncra Systems and Syncra Ct are trademarks of Syncra Systems. Collaborative Planning, Forecasting and Replenishment is a registered trademark of the Voluntary Interindustry Commerce Standards Association.