According to the Gartner report, Excellence in Business Cases, Metrics Alignment and Cross-Functional Involvement Leads to NPI Success, Janet Suleski and Mike Griswold, 8 May 2019, “On average, 43% of new products and 41% of refreshed or line-extension products introduced to the market fail to meet one or more of the key target metrics established in the business case.”
In an age where customer preferences change rapidly and there is a growing need for more niche merchandise, new product launches are high risk investments for companies. Each launch is unique and product development often encompasses a complex global network of suppliers and partners that must work in concert to ensure a successful launch. Often, supply issues such as material constraints, cost overruns or miscommunication with suppliers lead to delays and contribute to financial difficulties. Adding to these challenges, planning organizations often struggle with demand uncertainty leading to either too much inventory that must be sold at or near a loss or missed sales due to a lack of sufficient supply to meet demand.
A schedule delay at a single supplier can have a ripple effect across the supply chain leading to cost overruns, missed sales opportunities and a failed product launch. Logility’s always-on digital platform reduces the risks associated with new product introductions by utilizing multiple data sources including PLM (product lifecycle management), merchandising, POS (point-of-sale), social signals and other enterprise data sources to develop a more accurate demand plan. Through advanced demand sensing techniques, Logility is able to quickly adjust the demand profiles and further optimize sourcing, manufacturing, replenishment and pricing decisions.
“Today’s hypercompetitive market requires companies to be more nimble, able to sense and react quickly to changes in demand,” said Allan Dow, president, Logility. “The Logility Digital Platform is helping transform the new product introduction process using advanced techniques to develop a more accurate plan and gain new insights so companies can make better decisions faster and determine where to place merchandise for the greatest margin potential. To maximize the potential of a new product launch you need a strategy to identify and harness decision-quality data to feed your retail and business planning process.”
To learn more about Logility’s solutions for Retail, please visit https://www.logility.com/industries/retail/.
Accelerating digital supply chain and retail planning from product concept to customer availability, Logility helps companies seize new opportunities, sense and respond to changing market dynamics and more profitably manage their complex global businesses. The Logility Digital Platform leverage an innovative blend of artificial intelligence (AI) and advanced analytics to automate planning, accelerate cycle times, increase precision, improve operating performance, break down business silos and deliver greater visibility. Logility’s SaaS-based platform transforms sales and operations planning (S&OP) and integrated business planning (IBP) processes; demand, inventory and replenishment planning; global sourcing; quality and compliance management; product life cycle management; supply and inventory optimization; manufacturing planning and scheduling; retail merchandise planning, assortment and allocation. Logility customers include Big Lots, Fender Musical Instruments, Husqvarna Group, Parker Hannifin, Verizon Wireless, and VF Corporation. Logility is a wholly owned subsidiary of American Software, Inc. (NASDAQ: AMSWA). To learn how Logility can help you make smarter decisions faster, visit www.logility.com.
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 of Logility, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.