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Tyco Healthcare Selects ToolsGroup Inventory Optimization Solution
Medical Devices Leader to Implement Inventory Analysis Tool to Optimize Inventory and Service Levels
Boston - November 15, 2005 - ToolsGroup, the leading supplier of distribution-focused inventory optimization solutions, announced today that Tyco Healthcare Group, a world leading manufacturer and distributor of medical devices, has selected ToolsGroup's inventory optimization solution to achieve significant inventory and customer service improvements in North America.
"To meet the Healthcare Group's goals of lower inventory with industry-leading fill rates, we needed to take our network inventory modeling granularity to the next level in order to consider the supply chain tradeoffs and ultimate placement of inventory," said Peter Sturtevant, Vice President of Supply Chain Solutions and Transportation. "We selected ToolsGroup to add to our arsenal of tools because we could rapidly model and satisfy our requirements with an off-the-shelf solution."
The Tyco Healthcare implementation will use DPM, ToolsGroup's multi-echelon inventory optimization solution, to conduct strategic inventory and service level optimization. With DPM, executives can plan their customer service policies at very high fill rates and then optimize the global inventory mix and allocation across the supply chain to meet them. The results are near-perfect customer service levels with lower inventory and operating costs. In addition, the same ToolsGroup software can be used for both strategic studies and for operations, thereby ensuring that Tyco Healthcare executives will see the same results in practice as they did in their plans.
The project represents a jointly delivered solution from ToolsGroup and its strategic alliance partner Chainalytics, LLC, a provider of world class supply chain optimization services.
"We look around the globe for the best technology to couple with our management consulting skills to bring our clients a complete solution. When we went looking for the right tool for finished goods distribution optimization, we found that ToolsGroup was the best application in the marketplace," said Jeffery M. Metersky, Vice President, Supply Chain Strategy Practice. "It allows our clients, like Tyco Healthcare, to employ the policies identified during strategic studies in its daily operations with the same investment they have made in collecting the data."
"Tyco Healthcare, like other distribution-intensive companies we've worked with, requires a multi-echelon inventory optimization approach to tackle the challenges of lowering overall inventory, better managing demand and improving service," said Joseph Shamir, CEO of ToolsGroup. "DPM provides those planning tools and the tactical control to convert that strategy into action across the whole supply chain to achieve significant and sustainable cost savings."
About Tyco Healthcare
Tyco Healthcare is a leading manufacturer, distributor and servicer of medical devices worldwide. Its broad portfolio includes disposable medical supplies, monitoring equipment, medical instruments and bulk analgesic pharmaceuticals, sold under such names as Auto Suture, Kendall, Mallinckrodt, Nellcor, Puritan Bennett, United States Surgical, Valleylab and others. Tyco Healthcare Group is part of Tyco International Ltd.
Tyco International Ltd. is a global, diversified company that provides vital products and services to customers in five business segments: Fire & Security, Electronics, Healthcare, Engineered Products & Services, and Plastics & Adhesives. With 2004 revenue of $40 billion, Tyco employs approximately 250,000 people worldwide.
About Chainalytics
Chainalytics specializes in providing leading companies advanced consulting and outsourcing services to improve supply chain performance. Specializing in the application of advanced decision sciences technology, Chainalytics supports improved strategic, tactical and operational decision-making in the areas of supply chain strategy, transportation planning and inventory planning. The company's powerful combination of analysis, technology, and methodology enables clients to achieve and sustain double-digit cost reductions and customer service improvements, resulting in millions of dollars of value creation. Chainalytics serves mid- to large-size enterprises with complex supply chains, with special emphasis on companies in retail, wholesale and manufacturing of consumer durable and non-durables.
About ToolsGroup
ToolsGroup provides inventory optimization software solutions for distribution-intensive businesses. Its powerful stochastic solution optimizes multi-echelon distribution chain inventory, from finished goods assembly to the end consumer, and from strategic network design to daily operations. It allows supply chain managers to meet demanding service levels, while reducing inventory and operating costs. With more than 90 customers in 28 countries, it is the most experienced inventory optimization software provider worldwide. For more information on ToolsGroup and its solutions, please visit www.ToolsGroup.com.
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