ModusLink Announces Its Next-Generation Optimized Configuration Solution For Demand-Driven Supply Chains

ModusLink Corporation, a subsidiary of CMGI, Inc. and leading provider of global supply chain management solutions, recently announced the availability of its next-generation Optimized Configuration Solution for demand-driven supply chain design. Developed to improve supply chain productivity and profitability by identifying the most efficient and cost-effective supply chain model and inventory strategy possible, the Solution is now available with a new network optimization and simulation service designed to enable clients to minimize costs and maintain targeted inventory levels across the global supply chain.

By leveraging ModusLink's Optimized Configuration Solution, clients can determine the best time and place in the supply chain to perform the complete range of activities required to optimize assembly, configuration and/or packaging of generic base products or components into a market-ready state. The new network optimization and simulation service provides clients the option of using design and modeling software tools to expedite the analytical process and ensure more granular and precise evaluation of large amounts of critical data and operating variables. These robust tools also perform simulation and testing to predict how well the suggested network design will perform in real-world environments, resulting in valuable metrics for inventory levels cycle time and measurement.

Proven benefits of ModusLink's supply chain design services include:

• improved speed and accuracy of analysis, ensuring all cost trade-offs and critical operating variables are considered for maximum results;
• detailed, real-world metrics to facilitate better planning and implementation;
• tailored optimization capable of solving specific challenges and addressing top priorities;
• comprehensive analysis to reduce total supply chain costs; and
• reduced risk of inefficiency and waste by maintaining a regular schedule of network optimization.

SanDisk, the world's largest supplier of innovative flash memory data storage products, has been using ModusLink's Optimized Configuration Solution since 2001 and recently implemented the network simulation and optimization service to further streamline its supply chain design.

"By implementing ModusLink's Solutions, we were able to globalize our infrastructure and execute more standardized processes for deferred configuration and postponement, enabling us to evolve to a highly flexible model that afforded us better performance," said Jon Halsey, senior director customer fulfillment and sales operations for SanDisk. "We use a hybrid model that enables us to maintain a presence in each primary region of operation and remain close to our customers, while delivering an annual reduction of more than 24 percent in total supply chain spend."

The integrated, end-to-end solution leverages a combination of core services to synchronize all elements of the supply chain, including sourcing, materials/content management, light manufacturing, fulfillment, e-Business, returns management and asset disposition.

"With the addition of ModusLink's new network and simulation tools, we are able to offer our clients an unprecedented view of their end-to-end supply chain infrastructure that would otherwise be inaccessible," said Scott D. Smith, president of worldwide sales and marketing for ModusLink. "First-hand knowledge of local processes and regulations is essential to realize the full benefits of this type of tool. ModusLink applies its expertise to interpret the results and develop a supply chain strategy that maximizes success for our clients."

Optimized Configuration Solution

The Optimized Configuration Solution combines ModusLink's supply chain design expertise, the industry's largest global footprint with techniques, tools and processes in network optimization, discrete event simulation and inventory optimization to execute a supply chain network and inventory strategy that can manage the complexities of global supply and demand.

ModusLink designs and executes a more flexible global supply chain by employing optimization methodologies such as postponement and deferred configuration that leverage the best time and place in the supply chain to perform final configuration, packaging and distribution of products. By executing these key processes in-region and later in the cycle when demand is more established, clients can improve time to market, lower costs and optimize component and finished goods inventory to better meet global demand. This reduces excess and obsolescence and minimizes the need for rework if forecasts are inaccurate. Regional tax treatments can also vary widely between a fully configured, packaged product and the individual components.

Significant savings can result if managed correctly within the supply chain network.

For further details on SanDisk's use of ModusLink's Optimized Configuration Solution, please see the AMR Research case study titled "Network Design: SanDisk Uses Smart Postponement to Slash Costs 60%," by analyst Stephen Hochman, published January 3, 2008. The case study can be accessed at www.moduslink.com.

For more information on Optimized Configuration or to register for ModusLink's upcoming webcast, Supply Chain Strategies: Configure Your Way to a Competitive Edge, on April 2, 2008, at 1:00 p.m. EDT, which will demonstrate the new network optimization and simulation service and other supply chain strategies, visit www.moduslink.com.

About ModusLink
ModusLink Corporation is a leading provider of global, end-to-end supply chain management solutions. The company provides technology clients in the software, computing, consumer electronics, storage and communications markets with customized supply chain solutions that improve time-to-market, productivity and customer satisfaction while reducing risk and cost. ModusLink's services include consulting and planning, sourcing and supply base management, manufacturing and product configuration, fulfillment, logistics management, e-commerce and the complete range of aftermarket services. ModusLink has more than 30 facilities in 13 countries, creating the largest global footprint in the industry. With headquarters in Waltham, Mass., the company is a subsidiary of CMGI, Inc. For additional information, visit www.moduslink.com.

About CMGI
CMGI, Inc., through its subsidiary ModusLink, provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world. In addition, CMGI's venture capital business, Ventures, invests in a variety of technology ventures. For additional information, visit www.cmgi.com.

SOURCE: ModusLink Corporation