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RedPrairie Drives Multi-Warehouse Expansion for Leading Musical Instrument Supplier; Strong Partnership Potential is Imperative to AMS's Growth Plans.

Business Editors

WAUKESHA, Wis.--(BUSINESS WIRE)--Jan. 28, 2004

RedPrairie Corporation, a leader in global supply chain technology solutions, today announced it will support American Musical Supply's (AMS's) - one of the largest suppliers of quality musical instruments - ambitious expansion plans through an integrated mix of supply chain execution solutions. AMS plans to construct a customer distribution network next year and develop business-to-business sales channels using RedPrairie's distribution and enterprise vision products.

Peter Rubacky, COO at AMS said, "AMS was driven to establish a Nevada facility and implement RedPrairie's SCE solutions to provide faster turnaround time and better customer support for west coast consumers. Also, as AMS attempts to move into the business-to-business market and handle more high volume orders, it's imperative we reduce transportation costs through improved transit times. We believe our objectives can be accomplished by expanding our distribution network, with support from RedPrairie's robust solutions and expertise."

IMPROVED ACCURACY

RedPrairie's DLx(R) Warehouse will enable AMS to automate operations and improve efficiency through system-directed work using RF technology. By transitioning from manual processes to an electronic, paperless environment the supplier will improve inventory accuracy to over 99.9 percent and reduce manual errors.

INCREASED PRODUCTIVITY

AMS will deploy RedPrairie's advanced productivity management solution, consisting of labor software, engineering standards and change management, to improve labor productivity in the warehouse. This will significantly reduce labor expenses, which typically account for 30-65 percent of distribution costs. In addition, RedPrairie's DLx CompTrak solution will enable AMS to develop an equitable employee incentive program by accurately tracking task performance in detail. Incentive programs that utilize standards and reporting metrics can subsequently improve employee morale and retention.

EXPANDED VISIBILITY

RedPrairie's visibility tool, LENS(TM), will provide network-wide visibility to inbound and outbound orders to better plan operations and respond to real-time distribution changes. LENS also provides visibility to alerts within the system so customer service can intervene and take corrective action.

ENHANCED CUSTOMER SERVICE

AMS will improve customers' experience and satisfaction by providing them order availability and status information through RedPrairie's LENS visibility tool. After an order is placed, customers can call AMS's customer service center or check online to determine order status and better predict arrival times.

EVALUATION AND REAL-TIME RESPONSIVENESS

AMS will be able to monitor the overall health of distribution operations with DLx Scorecard. The performance measurement tool will allow AMS to evaluate site performance and determine problem areas to make real-time adjustments. It will also enable AMS to examine metrics such as inventory on hand and expiration dates, inventory accuracy, pick exceptions, space utilization and warehouse throughput to determine root cause analysis.

INSIGHTFUL SOURCING

DLx SourceRight, RedPrairie's new allocation/sourcing tool will help AMS determine which warehouse should fulfill an order, based on factors transportation distances, costs and inventory availability.

The direct-to-consumer retailer expects to go-live with all solutions in April 2004 and is scheduled to rollout to the Nevada facility that summer.

A LONG-TERM PARTNERSHIP

A key factor in RedPrairie's selection, was recommendation from Marketing Concepts, the IT support company for AMS's ERP Ecometry. Yvonne Bertorelli, Senior Manager of Implementation and Technology at Marketing Concepts said, "Although this is the first time Marketing Concepts will collaborate with RedPrairie for a supply chain execution technology implementation, we encouraged AMS to select RedPrairie due to RedPrairie's expertise and desire to become a true partner in AMS's success. RedPrairie will work with us to develop an interface to our ERP solution, Ecometry and help us support a multi-warehouse environment."

Rubacky continued, "We wanted a long-term relationship with a full solutions provider that was financially strong and committed to supporting us long-term. RedPrairie blew away other vendors with their responsiveness in their sales cycle and the genuineness of their people. RedPrairie's people were certainly a distinguishing factor in our decision."

RedPrairie Company Leader John Jazwiec said, "AMS has built its success through customer-friendly channels, rapid order fulfillment, quality products and customer service. RedPrairie applies that same customer-centric approach to our support our customers. We look forward to partnering with AMS and facilitating their visionary growth plans by providing superior results through our solutions and professional support team.

About American Musical Supply (AMS)

Based in Midland Park, NJ, American Musical Supply is among the world's largest suppliers of quality musical equipment and the second largest instrument online cataloger. AMS offers a huge selection of in-stock musical supply through its online and catalog stores. Customer orders ship from a state-of-the-art warehouse in New Jersey and AMS offers 24/7 customer support.

About RedPrairie Corporation

RedPrairie delivers superior logistics results by driving out more logistics costs than anyone in the industry, and enabling customers to consistently achieve their supply chain objectives. This is accomplished through an integrated suite of DigitaLogistix(R) solutions that provide the industry's leading transportation, productivity, and distribution management capabilities, enhanced with action-oriented components for real-time visibility, control and performance measurement. These solutions are deployed through an end-to-end results delivery system (the RedPrairie Approach) that ensures results achievement. RedPrairie delivers measurable results for customers in many markets, including high-tech and electronics, consumer goods, food and beverage, third party logistics, retail and wholesale, service parts, and make-to-order manufacturing. Customers include Compaq Computer, Procter & Gamble, Nestle, Panasonic, Georgia-Pacific, Eveready, Unilever, Exel, General Electric, Amazon.com, and many others. For additional information, call 1.888.624-8448, or access www.RedPrairie.com.

RedPrairie is a trademark, and DigitaLogistix and DLx are registered trademarks of RedPrairie Corporation. (C) 2003 RedPrairie Corporation. All Rights Reserved.
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Publication:Business Wire
Geographic Code:1USA
Date:Jan 28, 2004
Words:907
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