AMR Report Identifies Benefits of Software-as-a-Service Deployment Method for Vendor Managed Inventory (VMI)

• SaaS removes technical obstacles and paves way for wider adoption of VMI
• AMR showcases positive business results of Datalliance VMI customer SKF
• AMR Benchmark Analytix data indicates companies that practice VMI hold 25% less inventory on 6% lower total supply chain costs%

Cincinnati, Ohio, January 12, 2007 - In a recent Research Article, AMR Research (AMR) analyzed and reported on the benefits of Software-as-a-Service (SaaS) as a deployment method for Vendor Managed Inventory programs. AMR showcases the positive business results of leading truck parts supplier SKF, illustrating how SKF has combined active customer outreach with SaaS deployment methods to bring collaborative VMI to the automotive/truck aftermarket. SKF has utilized Datalliance as their turnkey VMI SaaS hub since 1997. AMR Benchmark Analytix data indicates companies that practice VMI with their suppliers hold 25% less material inventory on 6% lower total supply chain costs.

AMR points to the evolution of turnkey SaaS solutions as a technology milestone to support the broader implementation of VMI by stating, "Anecdotal evidence from companies like SKF suggests that SaaS is such an efficient mechanism for collaborative commerce that we may be witnessing the dissolution of the last of the major technical impediments to wider adoption of VMI best practices".

SKF now runs Datalliance VMI with 15 of its major customers and processes almost 100% of its sales volume with those customers through VMI. In addition, SKF customers substantially reduce planning effort, decrease inventory carrying costs, and improve inventory turns by as much as double the industry norm. In the article, SKF representative, Craig Young, states, "Customers are now approaching us to understand how to start VMI. And the ease of SaaS has made a name for itself among other manufacturers. SKF was the first in its industry to sign up with Datalliance."

Read the full AMR Article here.

About AMR Research

AMR Research is the No. 1 advisory firm focused on supply chain, enterprise applications, and infrastructure. Founded in 1986, AMR Research provides advisory services and peer networking opportunities to supply chain and technology professionals in the manufacturing and retail sectors. To learn more about our research and services, visit www.amrresearch.com.

About Datalliance

Datalliance is a "Software as a Service" (SaaS) company with extensive experience designing, developing and executing mission critical supply chain systems for Fortune 500 companies. As a result of extensive industry and technology experience, Datalliance has developed a comprehensive VMI-based e-commerce service. Datalliance enables suppliers and their customers to establish effective VMI relationships quickly and easily as well as facilitating collaboration across the Internet. Datalliance customers include companies such as: Philips, Goodyear Tire and Rubber Company, and SKF.

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Contact: Jennifer Warner, Datalliance
513-791-7272 or jwarner@datalliance.com