Building Products Manufacturer Reports Impressive ROI and Immediate Results in Managing Rapid Growth and Network Complexities
ROCKVILLE, Md.--Oct. 25, 2005 -- Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of synchronized supply chain and revenue management solutions, today announced that James Hardie Building Products, a building materials manufacturer and fiber-cement technology leader, has decreased freight costs by as much as 13 percent one year after implementing Manugistics` transportation management solutions.
As one of the fastest growing siding manufacturers in North America, James Hardie was managing 2,200 outbound loads per week including shipments to every location of America`s largest do-it-yourself (DIY) home improvement retailer manually through archaic ERP systems, paper reports and order milestones among nine disparate U.S. plant locations. Managing the processes was costly and time-intensive because of the de-centralized flow of information. In the building and materials sector where time-to-market is under constant scrutiny, James Hardie sought more efficient production planning and distribution mechanisms to manage its diverse transportation fleet.
Manugistics responded to James Hardie`s needs with a centralized transportation planning and execution solution aimed at stabilizing headcount in line with the company`s projected annual growth, adjusting to network complexities and providing the company with better visibility within their distribution system. Within 10 months of the project`s inception, all nine plants were up-and-running with Manugistics` Transportation Management solutions. As a result, James Hardie has improved its negotiating power with carriers to plan up to four days sooner, enabling better production scheduling and capacity planning and significant savings on freight costs.
"To be a valued partner to the businesses we serve, we must continually exceed our customers` expectations," said Manugistics Senior Vice President of Global Marketing and Solution Management Lori Mitchell-Keller. "The significant internal cost savings, increased productivity and flexibility on internal processes, improved service lead times and reduced inventory carrying costs have exceeded James Hardie`s expectations. James Hardie`s experience underscores the value Manugistics` solutions deliver to streamline clients` processes, improve their bottom line and synchronize their supply chain."
About James Hardie
The James Hardie family of businesses have been manufacturing cement-based building products for over 100 years. Today, James Hardie is a world leader in the development of, and enhancement of, fiber-cement technology, quality, and new applications for its weather-resistive properties. Now installed on over three million homes in the U.S., James Hardie siding provides a durable, low-maintenance, non-combustible alternative to wood and vinyl siding. For more information on James Hardie siding products, call (866) 4-HARDIE or visit www.jameshardie.com.
About Manugistics Group, Inc.
Manugistics powers the synchronized supply chain. Clients depend on Manugistics to position them one step ahead of demand. With Manugistics` unparalleled supply chain and revenue management solutions, clients achieve improved forecast and inventory accuracy and leverage industry leading pricing and yield management solutions to maximize profits while ensuring optimum supply for constantly changing demand. Its clients include industry leaders such as Boeing, Canadian Tire, Cingular, Circuit City, Coca-Cola Bottling, Coty International, DHL, Diageo, Dixons, DuPont, Eurostar Group Ltd., Georgia-Pacific, Great North Eastern Railway (GNER), Harley-Davidson, Harrah`s Entertainment, H.J. Heinz, John Deere, L.L. Bean, Limited Brands, Kraft Foods, Marriott, McCormick, Nestle, RadioShack, The Scotts Company, Sears, Roebuck & Co., Sinotrans, Unilever and Wickes Building Supplies. For more information, visit our website at www.manugistics.com.
FORWARD-LOOKING STATEMENT
This announcement contains forward-looking statements that involve risks and uncertainties that include continuing cautious capital spending by corporations for supply chain management software, the ability of Manugistics to effectively align its cost structure with revenues, unintended adverse effects of Manugistics` recent restructuring and cost containment initiatives and recent organizational changes, and changes in our competitive environment, including industry consolidation. More information about factors that potentially could affect Manugistics` financial results is included in Manugistics` filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 28, 2005 and Quarterly Report on Form 10-Q for the period ended August 31, 2005. Manugistics assumes no obligation to update the forward-looking information contained in this announcement.
CONTACT:
Manugistics Group, Inc.
Sheila Blackwell
301-255-5486
sblackwell@manu.com
or
Edelman
Kristine Gager
202-326-1747
kristine.gager@edelman.com
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