Woolworths Goes Live with Retail Solution

ROCKVILLE, Md., Feb 26, 2003 (BUSINESS WIRE) -- Manugistics (Nasdaq:MANU), the leading global provider of supply chain management and pricing and revenue optimization solutions, announced today that Woolworths Group, one of the United Kingdom's leading general merchandise brands, has implemented Manugistics' supply chain optimization solutions to power the company's integrated planning and replenishment (IPR) supply chain initiative.

Woolworths' IPR objectives are to improve stock turns and optimize network efficiency while ensuring that its customers - served by more than 800 stores found on virtually every main street across the United Kingdom - find in-stock the value-for-money products they have come to expect. The IPR initiative is Woolworths' largest-ever investment in its supply chain management systems and affects all areas of the company.

The company continues to focus on applying rigorous operational disciplines to its core business in order to improve cash flow and profitability following its de-merger from Kingfisher plc in 2001.

"More than ever, the time to benefit for any solution we implement is critical to Woolworths," said David MacInnis, supply chain director for Woolworths. "After an extensive review, we concluded that the Manugistics solutions uniquely offered us the integrated planning, robust supply chain optimization and execution capabilities needed to support our store level IPR initiative."

Scalability and performance on high volumes is also a key issue for Woolworths. MacInnis continued: "The combined team from Woolworths, Manugistics and IBM have worked together to optimize the performance of the solution for extremely large volumes. During December a full volume benchmark was successfully completed providing confidence that full business rollout can be achieved over the next few months."

The Manugistics solution enables Woolworths to create more accurate sales forecasts down to the store and stock keeping unit (SKU) level. Armed with a more accurate view of demand, the solution can then create an optimized distribution plan to better ensure that supply meets demand while minimizing inventory investment. In addition, it helps enable Woolworths to set optimal inventory levels and decide appropriate product mix and storage capacity across its fulfillment network. It also helps to evaluate appropriate seasonal pre-builds and optimal lane volumes to maximize customer service during the holiday season and other peak periods.

Said Jean Claude Walravens, president of European operations for Manugistics, "To maintain customer loyalty, sustain competitive advantage and enhance margins, retailers have to deliver the right product to customers where they want it, when they want it, at a price the customer is willing to pay. We believe the Manugistics suite is unique because the solutions can simultaneously target the requisite supply- and demand-side business processes to help make this goal a reality. We are delighted to add Woolworths to our growing global client base of retail leaders."

Many of the largest retailers - including 6 of the top 10 in the Fortune 500(R) - have turned to Manugistics for solutions that can help enhance margins while improving customer service. The company's clients include industry leaders such as Canadian Tire Corporation, Circuit City Stores, Inc., GlobalNetXchange (GNX), RadioShack Corporation, The TJX Companies and Toys "R" Us, Inc.

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