ModusLink Announces Next-Generation Optimized Configuration Solution for Demand-Driven Supply Chains

Logistics Insight Asia - Technology & Market Trends, 15/4/2008

ModusLink Corporation, a subsidiary of CMGI, Inc. and leading provider of global supply chain management solutions, recently announced the availability of its next-generation Optimized Configuration Solution for demand-driven supply chain design.

Developed to improve supply chain productivity and profitability by identifying the most efficient and cost-effective supply chain model and inventory strategy possible, the Solution is now available with a new network optimization and simulation service designed to enable clients to minimize costs and maintain targeted inventory levels across the global supply chain.

By leveraging ModusLink’s Optimized Configuration Solution, clients can determine the best time and place in the supply chain to perform the complete range of activities required to optimize assembly, configuration and/or packaging of generic base products or components into a market-ready state. The new network optimization and simulation service provides clients the option of using design and modeling software tools to expedite the analytical process and ensure more granular and precise evaluation of large amounts of critical data and operating variables. These robust tools also perform simulation and testing to predict how well the suggested network design will perform in real-world environments, resulting in valuable metrics for inventory levels cycle time and measurement.

Proven benefits of ModusLink’s supply chain design services include:

· improved speed and accuracy of analysis, ensuring all cost trade-offs and critical operating variables are considered for maximum results;
· detailed, real-world metrics to facilitate better planning and implementation;
· tailored optimization capable of solving specific challenges and addressing top priorities;
· comprehensive analysis to reduce total supply chain costs; and
· reduced risk of inefficiency and waste by maintaining a regular schedule of network optimization.

Optimized Configuration Solution

The Optimized Configuration Solution combines ModusLink’s supply chain design expertise, the industry’s largest global footprint with techniques, tools and processes in network optimization, discrete event simulation and inventory optimization to execute a supply chain network and inventory strategy that can manage the complexities of global supply and demand.

ModusLink designs and executes a more flexible global supply chain by employing optimization methodologies such as postponement and deferred configuration that leverage the best time and place in the supply chain to perform final configuration, packaging and distribution of products. By executing these key processes in-region and later in the cycle when demand is more established, clients can improve time to market, lower costs and optimize component and finished goods inventory to better meet global demand. This reduces excess and obsolescence and minimizes the need for rework if forecasts are inaccurate. Regional tax treatments can also vary widely between a fully configured, packaged product and the individual components. Significant savings can result if managed correctly within the supply chain network.

ModusLink, www.moduslink.com.