AMSAE American Software (MM)

Customer reduced inventories by 35% and slashed expediting costs by more than 50% ATLANTA, Sept. 27 /PRNewswire-FirstCall/ -- Logility, Inc. (NASDAQ:LGTY), a leading supplier of collaborative solutions to optimize the supply chain, today announced that one of its customers, a manufacturer of electronic components for the OEM and aftermarket auto industry, is featured in a new AberdeenGroup research report, "Best Practices in Sales and Operations Planning." The report recognizes the Auto Electronics Component Manufacturer for success in integrating demand planning, supply optimization and reverse logistics. The company had experienced supply chain challenges after suffering from an "inventory balloon" in 2003, which led to excess production and carrying costs. With a business that depends on the return of used components as the core material from which to cost-effectively build products to meet new demand, the company needed to gain better control of its supply chain and implemented an aggressive program aimed at combining best practices in demand forecasting, supply optimization and sales and operations planning. For the initial phase of the program, the company established ongoing dialogue with key retailers on their demand and core return and instituted a weekly planning meeting with the manufacturing plants to give them better forward visibility to anticipated demand. In addition, the company required a technology solution that would "seamlessly align manufacturing requirements and production schedules with forecasted demand, based on very specific and challenging scenarios that mirrored the company's global operations and reflected the best practices path it was determined to follow," the report notes. Logility Voyager Solutions(TM) for Demand Planning, Inventory Planning, Supply Planning and Global Sourcing was selected, after a rigorous review of technology providers, to help manage inventory levels and the challenges of their complex global supply chain. "Logility was selected based on its ability to demonstrate these core requirements, and its flexibility and capability to develop the unique requirements imposed by the returns issues. Logility was the vendor that took the opportunity to heart, and found the way to model reverse logistics into a single forward-looking model," the report states. The auto electronics company focused the success of the program on two specific areas, inventory reduction and cost reduction due to excess expediting and manufacturing costs from the mismatch of returns and sales. "The program has been in effect for almost two years and has exceeded the planned objectives on all counts," the report notes. "Inventory levels have been reduced from an average of 30 to 35 days of supply down to 14 to 25 days, with a 17% reduction in year-end inventory levels and an additional 17% to 20% reduction in clear sight. Excess expediting costs have also been reduced by more than 50%." "By integrating product and reverse logistics demand and supply management into a single integrated business process and application structure, a company can identify the root cause of potential problems more quickly and take action before the problems progress and adversely affect sales, operating costs or inventory levels," said Stan Elbaum, Aberdeen senior vice president, Fulfillment Research, and author of the report. "With Logility, this Auto Electronics Component Manufacturer was able to achieve an impressive level of performance improvement by increasing demand visibility, synchronizing supply and automating their S&OP process." Visit http://logility.com/ to download a copy of the complete AberdeenGroup research report, "Best Practices in Sales and Operations Planning." About Logility With more than 1,100 customers worldwide, Logility is a leading provider of collaborative, best-of-breed supply chain solutions that help small, medium, large and Fortune 1000 companies realize substantial bottom-line results in record time. Logility Voyager Solutions is a complete supply chain management solution that features performance monitoring capabilities in a single Internet-based framework and provides supply chain visibility; demand, inventory and replenishment planning; supply and global sourcing optimization; manufacturing planning and scheduling; transportation planning and management; and warehouse management. Logility customers include Bissell, Brown Shoe Company, Huhtamaki UK, Jockey International, McCain Foods, Mill's Pride, Pernod Ricard, Rand McNally, Sigma Aldrich, and VF Corporation. Logility is a majority owned subsidiary of American Software (NASDAQ:AMSAE). For more information about Logility, call 1-800-762-5207 or visit http://www.logility.com/. 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 challenges and risks associated with integration of acquired product lines and companies; the effect of competitive products and pricing; the Company's ability to satisfy in a timely manner the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted under that Section; 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, 2005 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more 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: . All trademarks are properties of their respective owners. DATASOURCE: Logility, Inc. CONTACT: Michelle Duke of Logility, Inc., +1-404-264-5485, or Web site: http://www.logility.com/ Company News On-Call: http://www.prnewswire.com/comp/120967.html

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