Inventory Optimization a Top Priority for Nearly Eighty-Five Percent of Consumer Goods Companies

Logility and Consumer Goods Technology Research Shows Significant Opportunity for Improvement through Advanced Supply Chain Solutions
ATLANTA — March 10, 2015 — Logility, Inc., a leading provider of collaborative supply chain optimization and advanced retail planning solutions, partnered with industry publication Consumer Goods Technology to determine the current state of multi–echelon inventory optimization (MEIO) in the consumer goods industry. According to the report, Inventory Optimization: Still a Supply Chain Priority, consumer goods companies understand the importance and benefits of MEIO; however, 69 percent still rely on static and cumbersome spreadsheets or the basic capabilities of their ERP / APS systems to manage inventory optimization initiatives.

The report states, “inventory optimization technology and accompanying processes allow further reductions in inventory while enabling high service levels amidst challenging conditions.” In fact, Logility Voyager Solutions has helped consumer goods companies realize up to a 30 percent reduction in inventory while improving customer service. Utilizing advanced modeling techniques to define various inventory strategies, compare their effects and reveal the optimal direction, Voyager Solutions helps companies move beyond the simple, rule–of–thumb policies currently in place.

Notable Findings:

  • At the vice president level 69 percent rank inventory optimization as a top priority
  • Improving customer service levels is cited as the top reason for implementing an inventory optimization initiative
  • The need to integrate inventory optimization with the sales and operations planning (S&OP) process ranks as the top new initiative to start
  • Only 21 percent of respondents perform MEIO across multiple stages / locations of their supply chain

“The research clearly shows a large opportunity for consumer goods companies to improve their supply chains through more advanced inventory optimization initiatives,” said Mike Edenfield, president and CEO, Logility. “Logility Voyager Solutions has helped our customers reduce their inventories by up to 30 percent; saving millions of dollars in working capital that can be reinvested in the company for new product development and growth. Inventory optimization’s proven benefits, including cost reduction and improved customer service, are critical in today’s dynamic global market.”

Download the Report: Inventory Optimization: Still a Supply Chain Priority

About Logility
With more than 1,250 customers worldwide, Logility is a leading provider of collaborative supply chain optimization and advanced retail planning solutions that help small, medium, large, and Fortune 500 companies realize substantial bottom–line results in record time. Logility Voyager Solutions is a complete supply chain management and retail optimization solution that features a performance monitoring architecture and provides supply chain visibility; demand, inventory and replenishment planning; Sales and Operations Planning (S&OP); supply and inventory optimization; manufacturing planning and scheduling; retail merchandise planning and allocation; and transportation planning and management. Logility customers include Big Lots, Fender Musical Instruments, Parker Hannifin, Verizon Wireless, and VF Corporation. Logility is a wholly owned subsidiary of American Software, Inc. (NASDAQ: AMSWA). For more information about Logility, call 800–762–5207 USA or visit

Forward–Looking Statements

This press release contains forward–looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, continuing U.S. and global economic uncertainty, the timing and degree of business recovery, unpredictability and the irregular pattern of future revenues, dependence on particular market segments or customers, competitive pressures, delays, product liability and warranty claims and other risks associated with new product development, undetected software errors, market acceptance of Logility’s products, technological complexity, the challenges and risks associated with integration of acquired product lines, companies and services, as well as a number of other risk factors that could affect the Company’s future performance. For further information about risks the Company and American Software could experience as well as other information, please refer to American Software, Inc’s. current Form 10–K and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact: Vincent C. Klinges, Chief Financial Officer, American Software, Inc., (404) 264–5477 or fax: (404) 237–8868.

Logility is a registered trademark and Logility Voyager Solutions is a trademark of Logility, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.

Media Contact:
Justin Siefert