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Nov 2001
Toolsgroup bets on its DPM
LARGO CONSUMO


By Armando Garosci, LARGO CONSUMO

Toolsgroup specialises in the development of logistics technology solutions, operating in Italy as well as throughout Europe, North America and Israel.

Toolsgroup discussed ERP concepts during an event organised around the clients and operators from the manufacturing sector. The event provided the possibility of presenting DPM (Distribution Planning Model), the supply chain planning software suite for inventory resupply, which is developed and distributed by this Milan based company.

Industry data shows that the European market for ERP's is slowing down, both due to external factors such as the changeover to the Euro, as well as internal company factors such as the accusation that ERP system implementations are costly and ROI calculations difficult. From an analysis of its own clients, Toolsgroup says that its DPM software can permit warehouse stock reductions of between 20% and 50%, without compromising high service levels and at the same time integrating with legacy architectures.

Resupply forecasts are calculated using this software suite from an algorithm which works on historical flows, integrating macroeconomic indices, commercial action data and other external variables.

A recent report by Assintel/Federazione Economia Digitale confirms such a status for ERP systems for supply chain management, highlighting the fact that it is also due to lack of competence. Sector estimates show that the search for qualified IT staff is the highest professionally indexed need expressed by Italian companies, at 24.5%.