i2's Closed-Loop Vision Garners User Support

Computerworld - ORLANDO -- Dallas-based i2 Technologies Inc. last week continued to push its so-called closed-loop supply chain vision to a mostly receptive audience at the i2 Directions 2004 user conference here last week.
The closed-loop approach, first disclosed last year, bundles i2 supply chain, integration and analytical technologies and processes that can be used to cut costs, boost efficiency and help resolve glitches on the fly. Non-i2 technologies can be added to the loop using Web services.
CEO Sanjiv Sidhu said the approach can deliver a full-scale, dynamic supply chain, whereas the traditional method simply creates a static forecast. "The concept of a plan is having accountability and being something you live in and die in to make it happen," he said.
Mike Stevens, leader of trailer fleet services at Stamford, Conn.-based GE Equipment Services, agreed that disciplined supply chains are a necessity. The company uses i2's demand manager, forecasting and supply chain planning tools to manage its fleet of 125,000 trailers. The software uses three years of historical data to make demand projections for use by the sales force and requires extensive participation by company employees. But those involved need to be given incentives to participate, Stevens said. "This needs to be managed, and people have to be accountable for the results," he added.
Stevens said the product has mostly met his expectations, though he would like a simpler user interface menu. "If I don't understand it, the sales force won't either," he said. "i2 is a strong technical company, but they have to make the interface have a Forrest Gump look before it hits the market."
Signs of Progress
Will Shiver, supply chain software engineer at VF Corp. in Greensboro, N.C., said he's encouraged by the design. "They've caught up with us. We've been practicing closed-loop concepts for some time, and now they've put a label on it and it has a face," he said.
The apparel maker uses i2's supply chain and demand management applications and recently completed a pilot of its Master Data Management data synchronization software, which it expects can enhance its closed-loop processes. The MDM tool rapidly linked information from i2's Supply Chain Planner module to data created by a homegrown mainframe application to produce an inventory report. Previously, it took months to link the data sets, Shiver said.
Ravi Vancheeswaran, a planning director at ON Semiconductor Corp. in Phoenix, wants to take advantage of i2's stated approach of selling applications as components. "At some point, we want to make the supply chain to belike Lego pieces," he said. Currently, ON runs i2's Six.One Demand Planner, Supply Chain Planner and Demand Fulfillment applications.
Miami-based logistics services provider Ryder System Inc. wants to further exploit functions in i2's Transportation Optimizer and Transportation Manager products.
For instance, Ryder would like to support ocean freighting operations, including the ability to handle steamship schedules, said transportation product manager Ron Abrams. In addition, Abrams said he would like to use the software to help Ryder meet unique customer requirements during backhauling and fixed-routing operations.

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