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IBM and Industri-Matematik Launch Strategic Supply Chain Relationship to Drive Speed, Service and Profitability in E-Business

Canadian Tire, Norsk Medisinaldepot Among Customers to Benefit

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WHITE PLAINS, N.Y. & STOCKHOLM, Sweden - 23 Sep 1999: -- IBM and Industri-Matematik International Corp. today announced a new worldwide strategic initiative to deliver integrated, high- velocity supply chain solutions for e-business.

This relationship will help companies overcome the complex supply chain challenges of e-business to manage high order volumes, shorten time-to-market, cut fulfillment costs, and increase customer responsiveness. Included among the joint customers of IBM and Industri-Matematik are Canadian Tire, Canada's largest hardgoods retailer; Ahlsell AB, a market-leading wholesale company that provides plumbing, heating, and electrical supplies in Sweden; and Norsk Medisinaldepot (NMD), Norway's largest wholesale distributor of drugs and hospital supplies.

In this new relationship, IBM and Industri-Matematik will work together on marketing, sales, services and product development. The companies will jointly market Industri-Matematik's VIVALDI(TM) suite of global fulfillment and customer service software for e-business, through their global direct sales teams. They will target companies in the retail, e-tail, wholesale, consumer durables, consumer packaged goods (CPG) and electronics industries.

The companies' combined capabilities allow businesses to integrate Web merchant sites with software for advanced global fulfillment. The integrated solution will enable 100 percent real-time visibility of inventory availability, pricing, fulfillment costs and preferences on the basis of individual orders, products and customers. It will also help to significantly reduce inventories while delivering products more quickly, improving customer service and increasing revenues and profitability.

Industri-Matematik is a strategic supply chain execution component of IBM's Global Supply Chain Management initiative, complementing IBM's recently announced relationship with i2 Technologies for supply chain planning. Industri-Matematik brings a broad suite of fulfillment capabilities to the IBM initiative, including industry-leading advanced order management and replenishment execution. Teaming with a select group of market-leading companies, IBM will develop, market and implement leading-edge, integrated supply chain management solutions.

"The IBM and Industri-Matematik relationship represents the next generation of e-business applications - delivering the power to streamline replenishment processes, reduce inventories and speed order cycle times,'' said Mark Foote, sr. vice president and CIO at Canadian Tire. "Together, they provide unmatched supply chain technology and services to deliver a quick time-to-benefit for fast-moving, high-volume companies.''

According to Jan-Petter Skodbo, CIO at NMD, ``Success in e-business requires seamless integration of front-end Web commerce capabilities with advanced back-end fulfillment software that speeds the movement of goods through the supply chain. IBM and Industri-Matematik bring the best of both together to provide the most advanced solutions available.''

Industri-Matematik will leverage IBM Global Services to help customers generate rapid returns-on-investment and IBM research facilities to optimize product capabilities. IBM will establish global Supply Chain Centers of Excellence featuring combined IBM and Industri-Matematik solutions. Industri-Matematik is working to certify the IBM Global Services Group on its innovative Value Improvement Process (VIP), a combination of business methodology and enterprise software that enables companies to identify, improve, monitor and measure supply chain operational performance.

Through the relationship, Industri-Matematik will continue to incorporate the standards and technologies of IBM's Application Framework for e-business - an open, multi-platform approach for building and deploying integrated e-business applications. IBM and Industri-Matematik will support the development of industry standards for open data modeling, which will help facilitate the multi-company collaboration necessary to improve supply chains.

"IBM and Industri-Matematik share a vision for e-business that will enable companies to meet customer expectations energized by the speed and convenience of the Internet,'' said Bill Paulk, general manager of ERP and SCM solutions in IBM Global Industries. "Customers now have instant access to a world of choices for product purchases, making managing the complete order-to-receipt process essential for success. Our relationship with Industri-Matematik will enable organizations to achieve the reliability and responsiveness of their fulfillment processes to address the challenges of e-business.''

According to Stig Durlow, CEO at Industri-Matematik, "The power and pervasiveness of the Internet has exploded traditional tenets of supply chain management - forever altering how companies work with their customers, suppliers and even themselves. Together, IBM and Industri-Matematik will enable businesses to capitalize on new opportunities, deliver goods and services to customers faster, more reliably and at a greater profit, and add value to customer relationships at every point of contact.''

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