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Star Sales & Service Automates Inventory Process with IBM and DMS Solution

Auto Parts Distributor Drives Down Half Million Dollars in Inventory Overstock

SOMERS, N.Y. - 29 Apr 2005: IBM and DMS Systems Corp. today announced that Star Sales & Service Inc., an Auto Parts Aftermarket Distributor has transformed its business operations by implementing an automated Supply Chain Management System that integrates its inventory, warehouse tracking, and Internet online orders System . As a result, the company has slashed more than half a million dollars in inventory redundancy, improved inventory turn rates by 95 percent and achieved a 13% increase in order fill-rates during the first year of the implementation.

The combined IBM and DMS System solution has enabled Star Sales & Service to gain a competitive edge and react more quickly to marketplace trends by obtaining real-time online order entry, inventory tracking and customer connectivity capability to the company's four warehouses.

In an increasingly competitive business environment the biggest challenge for an Auto Parts Distributor is to manage inventory on demand, slash redundancy resulting from overstocking, and maintain efficient supply of products at lower costs to fulfill customer demand.

By not having an automated system that could supply the distributor with this information on demand, Star Sales and Service found themselves delivering poor customer service due to being out of stock on popular items and having inventory overstock of poor selling items. Additionally, the company also experienced severe inventory imbalances due to the declining performance of its outdated Triad (Activant) system that was unable to provide management access to critical information on the products, pricing and availability.

By implementing a combined IBM middleware and the DMS solution, Star Sales & Service has improved their inventory turn rates by 95 percent as the DMS System can accurately forecast inventory demand based on analyzing sales trends, lost sales, estimated time of delivery of products versus customer demand and offers a more precise measurement of the cycle of ordering the parts based on a user-assigned priority.

The solution has also allowed Star Sales & Service to connect its customers directly to the inventory database and place orders in real-time through an online Web Portal. As a result, the auto parts distributor is able to obtain 25 percent of its business via the web on its e-commerce site at a much lower cost than the traditional manual phone and fax orders they had in place before. This has also allowed Star Sales & Services' management to make critical business decisions on sales and purchase of products in real-time, based on the 24 x 7 view of inventory supply and demand.

"The IBM and DMS' on-demand integrated supply chain solution has revolutionized the way we conduct our business. The customized DMS System has allowed us to reinvent our operational capabilities to increase sales and remain profitable with improved inventory turns," said John Krieger, President and CEO, Star Sales and Services. We are now able to better service ours customers, respond faster to the marketplace trends, and reduce excessive cost due to inventory inefficiencies. As a result, we view ourselves as a model on-demand business." said Krieger.

Powered by WebSphere Application Server-Express, DB2 Database and IBM eServer iSeries, the DMS DISTRIBUTION /EXPRESS System provides Auto Parts Distributors with an integrated suite of Supply Chain and e-commerce applications. DMS Systems Corp., is a North Carolina based Solution Provider that specializes in integrated e-commerce and Supply Chain solutions for Automotive, HD Truck, RV, and Marine Parts Distributors in the US and Canada. DMS is a Premier Level Business Partner and an ISV Advantage - SMB Partner that is part of IBM's PartnerWorld Automotive and Wholesale Distribution Industry Networks.

"Leveraging IBM's on-demand strategy and applying it to our technology infrastructure has helped us further gain market share in an increasingly competitive market by helping us build customized solutions for our customers," said Grady Davis, Founder and CEO, DMS Systems Corp. "Our customers recognize the value we bring to them through our partnership with IBM, and that is also helping us sell solutions with increasing success into the on-demand world of the Auto Parts Industry," said Davis.

Contact(s) information

Kaveri Camire
IBM Media Relations
(646) 598-6106
kcamire@us.ibm.com

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