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Demand Solutions(R) Helps Peerless Pump Double Sales with Same Inventory

Posted on: Thursday, 29 January 2009, 07:00 CST

Demand Solutions enables Peerless Pump to increase annual inventory turns from six to nine on key product line

ST. LOUIS, Jan. 29 /PRNewswire/ -- Demand Management, Inc., a global resource for managing the supply chain for small and midsized enterprises, today announced that its customer Peerless Pump has doubled sales while keeping the same inventory levels with the help of Demand Solutions supply and demand planning software.

With Peerless Pump, every customer sale is built to order, which translates into forecasting an inventory made up of the most common pump pieces. To help manage the complexity of sales forecasting and inventory management, Peerless Pump turned to supply chain management expert Demand Solutions.

"Demand Solutions helped us almost double our business by substantially increasing our forecast accuracy and inventory planning," said Greg Brown, Peerless Pump's director of sales and operations planning. "We also did not have to increase inventory levels to accommodate the increased business, which has led to much greater profitability and efficiency."

Peerless Pump utilizes Demand Solutions Forecast Management for demand forecasting and Demand Solutions Sales & Operations Planning to execute its monthly sales & operations planning (S&OP) process. Allowing the company to incorporate market intelligence creates more accurate forecasting models, eliminating unnecessary inventory while simultaneously helping Peerless Pump plan for more profitable growth.

"When the Demand Solutions software predicted a significant uptick in our inventory needs, honestly, we were a bit skeptical but we took the leap of faith," adds Brown. "When the sales came in at the expected increase, we were relieved both that the prediction was true but even more importantly, that we had the inventory on hand to meet our customer's needs immediately."

Demand Solutions Forecast Management software automatically selects the best of 20 forecasting algorithms based on a "best fit" simulation of how well each formula was able to predict the item's known demand. In addition to its algorithms, the Demand Solutions software enables users to adjust the forecast based on human instinct and sales force collaboration.

"While Peerless Pump originally was formed to provide irrigation systems to the California orange groves over 80 years ago, it has grown to supply pumps that power the most critical environments - including fire protection for the world's most marquee buildings," said Demand Management president Bill Harrison. "Helping Peerless Pump nearly double its sales while keeping the same inventory levels speaks to the value our solutions deliver. At the end of the day, it's about helping our customers become more profitable."

Sales and Operations Planning (S&OP) has been a vital process for manufacturers and wholesale distributors to manage profitability and risk. Demand Solutions released the first stand-alone solution, Demand Solutions Sales & Operations Planning, to the market in 1992.

About Demand Management, Inc.

Demand Management, Inc. (DMI) is a global resource for software, support, services and training for maximizing profits in manufacturing, distribution and retail operations. More global supply chains depend on DMI's Demand Solutions than any other system for forecasting, demand planning and point-of-sale analysis. For more information on DMI's, visit www.demandsolutions.com. Demand Management is a wholly owned subsidiary of Logility, Inc. (Nasdaq: LGTY), which is a majority owned subsidiary of American Software (Nasdaq: AMSWA).

Forward-Looking Statements

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, changes in general economic conditions; technology and the market for the Company's products and services including economic conditions within the e-commerce markets; the timely availability and market acceptance of these products and services; the effect of competitive products and pricing; the uncertainty of the viability and effectiveness of strategic alliances; and the irregular pattern of the Company's revenues. For further information about risks the Company could experience as well as other information, please refer to the Company's Form 10-K for the year ended April 30, 2008 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information about risks the Company could face as well as other information, contact Vincent C. Klinges, Chief Financial Officer, Logility, Inc., 470 East Paces Ferry Rd., Atlanta, GA 30305, (404) 261-9777.

FAX: (404) 264-5206 INTERNET: HTTP://www.logility.com or E-mail asklogility@logility.com. All trademarks are properties of their respective owners.

SOURCE Demand Management, Inc.

Source: PR Newswire

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