Snaidero and Fiat-Hitachi get fast, focused supply chains

Italian kitchens manufacturer Snaidero says it’s cut production lead times and order cycles, optimised use of production resources like painting cells and finishing areas, and improved synchronisation with its external resources since implementing demand management and production planning and scheduling software from TXT e-solutions. Speaking at TXT’s global user conference in Venice, Snaidero CEO Edi Snaidero, said the software now manages all critical production departments, collaborative procurement planning with key suppliers, and order collection, tracking and confirmation for its agents and resellers. “For some time we have been developing a true partnership with all our key suppliers, consultants and resellers. With TXT, this is already a reality and the results have been excellent,” he said. And in fact an Internet portal has been set up for managing supplier and reseller relations, while a 3D configuration system has been established to accelerate the design process and eliminate errors. Also at the event, similar success was reported by Fiat-Hitachi, another TXT user focusing on demand planning, procurement, operations planning and scheduling, in this case to improve its earth-moving equipment manufacturing business. Fiat-Hitachi said it expects to gradually eliminate its make-to-stock products, cut the number of transformations of the end product by 30%, reduce stock of direct materials by 10% and cut order cycle time by a full 50%. Said Marco Guida, TXT’s vice president: “Times are changing. Customers are starting to understand supply chain management issues and they’re looking at the chain holistically now. Customers want focused software solutions now, with minimal risk, low cost implementations and fast pilots that prove it all works.” The bulk of TXT’s business at present comes from mid-to-large customers within the fashion, retail, food and beverage, industrial and automotive industries. Main competitors in Europe are Manugistics and i2, plus the ERP (enterprise resource planning) vendors with their SCM add-on modules – the likes of JD Edwards, PeopleSoft, Oracle, SAP, Baan and Geac. Financially, TXT had a good year in 2002 with recent contract wins including La Perla Group and Mustang in the fashion sector, Zanbon and Shering-Plough in pharmaceuticals, plus a likely Westland Helicopters deal in the UK. Guida said TXT’s vertical industry solutions are doing well and beating ERP competition and the larger i2 and Manugistics in this sector. Of the latter he said: “Their deals normally have a 12 to 24 month implementation time with a 1:4 software license-to-service cost ratio. Our pricing policy is a 1:1 ratio.”