i2 Broadens FreightMatrix Offering to Include Hosted Sourcing Applications
Michaels Stores, Inc., Leggett & Platt experience success using i2 logistics optimization solutions
LOGICON 2004 -- LAS VEGAS -- March 9, 2004 -- i2 Technologies, Inc. (OTC: ITWO), a leading provider of closed-loop supply chain management solutions, today announced the expansion of i2 FreightMatrix services to include hosted sourcing applications.
The traditional FreightMatrix offering included hosted services for the i2 Transportation solution in both public and private marketplace environments. In 2003 alone, more than 3,700 vendors and 150 carriers interacted with FreightMatrix shippers to manage more than 720,000 shipments and executed in excess of 2.4 million EDI transactions through private FreightMatrix transportation management Internet portals. In total, more than 500 carriers are registered on the FreightMatrix site.
i2 has now broadened the scope of FreightMatrix to include transportation bid collaboration, transportation modeling, negotiation and procurement, and custom report development. Some of these newer services are already being used by companies such as Leggett & Platt. FreightMatrix offers a web-based service offering that is intended to allow companies to leverage the strength of their transportation and sourcing solutions immediately, which can be a cost-effective alternative to enterprise solutions.
"The hosted network model continues to gain traction in the transportation market. Close to 30 percent of TMS deployments in 2002 were in the hosted model, accounting for over $190 million in revenues industry wide, and the trend certainly continues today," said Adrian Gonzalez, director, Logistics Executive Council, ARC Advisory Group. "i2`s investment in FreightMatrix, coupled with the success and support of its clients, is a strong testament that this model is a cost-effective and viable deployment option."
Michaels Stores Gains Efficiencies
Rapid growth prompted Michaels Stores, Inc., the world`s largest retailer of arts, crafts, framing, floral, wall decor and seasonal merchandise, to bring its transportation operations in-house. Michaels sought a solutions provider that offered advanced transportation management capabilities to help it more effectively manage and analyze its growing business, ultimately selecting i2 for the depth and breadth of its solutions. The FreightMatrix hosted hardware platform was also key in Michaels` decision-making as the company approached the expiration of its contract with its 3PL provider.
Michaels reports that i2 solutions have enabled the company to increase shipment planning and execution efficiencies and to gain visibility into transportation capacity requirements. Through the use of FreightMatrix, Michaels processed 100 percent of its inbound and outbound truckload and LTL shipments within nine months, reduced worker hours associated with load planning and processing by nearly 50 percent, and gained the ability to project transportation management goals up to several years in the future.
"Before using i2 solutions, Michaels was very reactive," said Hal Feuchtwanger, director of Domestic Transportation at Michaels Stores, Inc. "Now we`re looking anywhere from six months to a couple of years ahead in terms of how we will manage our transportation operations, and we expect the solutions to continue to give us a competitive edge."
Leggett & Platt Realizes Cost Reductions
Leggett & Platt, a Fortune 500 diversified manufacturer that conceives, designs and produces a broad variety of engineered components and products, deployed i2 Transportation Manager to 24 of its 250 branches beginning in August 2003 with a goal of managing transportation centrally, with flexible execution at the local level. The project was deployed on time and on budget. Leggett & Platt is now working to deploy the solution to the balance of its North American branches with a goal of completion by year`s end.
In parallel, Leggett & Platt underwent an initial deployment of i2 Transportation Bid Collaboration using the web-enabled FreightMatrix service to assist with strategic bid negotiations. The deployment - which makes up just 20 percent of Leggett & Platt`s total truckload volume - made an immediate impact, resulting in a reported seven percent reduction in annualized costs. Since the initial deployment, Leggett & Platt is expanding the use of Transportation Bid Collaboration to assist the company in establishing contracts with ocean carriers. The company intends to use the i2 solution via FreightMatrix for less-than-truckload volumes in the coming months.
"We are pleased with the initial results delivered by i2`s TBC solution," said Jon Erbes, staff vice president, Transportation, Leggett & Platt. "We are seeking decreased transportation costs, increased asset utilization and improved transport cost to service level trade-offs. We continue to implement i2 solutions across our company with a goal of continued improvement in those areas."
i2 at Logicon
i2 will be meeting with customers and demonstrating its supply chain management solutions in Booth No. 6 at Logicon March 9-10. Greg Girard, i2 vice president, Consumer Goods and Retail, will deliver the Chairperson`s Address to open the first day`s general session.
About i2
A leading provider of closed-loop supply chain management solutions, i2 designs and delivers software that helps customers optimize and synchronize activities involved in successfully managing supply and demand. i2`s global customer base consists of some of the world`s market leaders - including seven of the Fortune global top 10. Founded in 1988 with a commitment to customer success, i2 remains focused on delivering value by implementing solutions designed to provide a rapid return on investment. Learn more at www.i2.com.
i2 Cautionary Language
This press release may contain forward-looking statements that involve risks and uncertainties including forward-looking statements regarding the customer`s ability to implement or integrate i2 solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to i2 solutions. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors which could impact i2`s financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2`s recent filings with the SEC, particularly the Annual Report on Form 10-K filed on July 21, 2003 and the Quarterly Report on Form 10-Q filed on November 14, 2003. i2 assumes no obligation to update the forward-looking information contained in this news release.
For further information, please contact:
Kirsten Monberg
i2 Corporate Communications
469-357-4966
Kirsten_monberg@i2.com
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