Nordic Companies Boost Supply Chain Competitiveness, Generating Record Year for Optilon and ToolsGroup

Manufacturers and retailers defy fragile macroeconomic outlook by improving service levels and releasing value throughout their supply chains

STOCKHOLM and BOSTON, November 20, 2014 – Supply chain planning and optimization partners Optilon and ToolsGroup are experiencing a record sales year in the Nordic region as more manufacturers and retailers prepare to defy the fragile macroeconomy by boosting their supply chain competitiveness. “Optimizing supply chains” has become the mantra for the pair’s customers, who are focused on achieving stronger operational performance despite challenging market fundamentals.

Popular food and beverage brands, such as Findus and The Absolut Company, are part of the trend. Retail customers, like Kronen (drug store chain) and Design Torget (internet retailers), are also seeking to profit from better forecasting and supply chain planning.

Competing in the Nordic region is increasingly tough. The International Monetary Fund just downgraded its growth forecasts for the region’s chief export blocs, the Eurozone and BRIC countries. Given that Nordic companies pay relatively high average salaries, many are exploring ways to release value in their supply chains to avoid being squeezed financially and without sacrificing quality. Optilon is implementing ToolsGroup’s software to help Nordic companies make the best planning decisions in the midst of these competing forces. For example:

• Findus – service levels improved 3 points to 98% and inventory reduced by 10% through new automated processes
• Thule – service levels improved more than 20 points, from 75 to 95+%; inventory reduced by 10%; workload reduced by more than 75%
• Bostik – service levels improved 5+ points to 98%; inventory reduced by 50%; obsolete inventory reduced by more than 75%
• Höganäs – forecast errors reduced by 50%; planning time reduced by 50%
• Nederman – improved inventory turns by more than 20% by replacing current inventory optimization tool with an automated process

According to Magnus Edberg, VP Commercial Operations at Optilon, “The kind of projects we implement with ToolsGroup are compatible with Nordic values for maintaining high quality standards, working collaboratively, continuous innovation and eliminating waste. Compared to other efficiency drives, supply chain improvements translate directly into tax-free profits at nobody’s expense. These can be invested into areas like R&D and marketing or returned to shareholders.”

ToolsGroup’s CEO Joseph Shamir added, “Having presented at Optilon’s conferences about improving service levels and optimizing supply chain processes, it’s gratifying to see the tangible gains that Optilon’s customers have made in these areas using our software. Our partnership in the region continues to go from strength to strength.”

About Optilon

Optilon creates business advantage through solutions based on leading supply chain applications. Optilon takes a holistic approach to planning and optimization for companies within both manufacturing and trade, implementing market leading solutions and processes. Optilon uses its expertise to choose among the leading and most innovative applications on the market. Service Optimization and Demand Planning are focus areas where Optilon has chosen to work with ToolsGroup.