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Supply Chain Insight & Ideas - A Quarterly Newsletter from LLamasoft
Don Hicks, President and CEO , LLamasoft, Inc. Supply Chain Network Design Technology
Don Hicks
President and CEO
LLamasoft 2009 Revenues up 20%, Record Q1 2010

What?!? Yes, you heard that right. In the middle of what has popularly been called the worst crisis since the depression, LLamasoft actually grew by 20% in total revenues: software licenses, consulting services, and maintenance and support were all up significantly. And Q1 of 2010 has just closed out as our biggest quarter ever. When I’ve discussed our recent results and history with prospects and analysts, everyone wants to know the same thing: How did you do it?

Here’s the secret: We did what our customers wanted us to do. It’s true, although perhaps disappointingly old fashioned. At the end of 2008, we at LLamasoft recognized that the coming year was going to be a tough one and we agreed as a team that, in addition to keeping our costs down, we had to redouble our efforts to listen to our customer’s requirements and spend our time doing what they really valued. That meant providing a lot of coaching on demand (that is, whenever anyone needs it), customized training, and continued software innovation through improving our core products.

LLamasoft integrated Multi-echelon Inventory Optimization capabilities into Supply Chain Guru. A whole new module with a whole new set of capabilities, and we increased the price of the software… by zero. While LLamasoft’s competitors have largely focused on trying to squeeze more revenues out of their tired old legacy offerings, LLamasoft has cranked out new features and functions while maintaining our pricing approach. Features such as Visual Modeler, EDIT, and Scenario Automation are just a few examples of our development efforts.

More value, more power, more support, for the same or less money. That’s what’s been leading more new customers than ever before to select LLamasoft as their organization’s network design solution.

Recessions and tough times are harsh taskmasters. Business still happens, but the tolerance for second place finishes goes way down, as in to zero. As Zen Master Ricky Bobby says it in Talladega Nights, “If you ain’t first, you’re last.” Even if that’s not exactly right, in a recession, it feels right. In the final analysis, it appears that LLamasoft’s continued growth has been because we stayed focused on our mission--helping people make better supply chain decisions.

On behalf of the entire LLamasoft team, I’d like to say thank you for your support and encouragement. We won’t let you down, and if you like the improvements you’ve seen in the last 12 months…

You ain’t seen nothing yet…
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LLamasoft Inc.
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Inventory Optimization from LLamasoft

A major new technology and solution for Multi-Echelon Inventory Optimization
One of the most notable new features that we released in Version 6.0 of Supply Chain Guru® was our new inventory modeling and optimization solution. This solution was initially released in early 2009 as part of a Supply Chain Guru Beta program. After successful Beta Testing, Inventory Optimization was made available to all of our current users as part of their Annual Support and Maintenance service.

This solution uses a unique approach for multi-echelon inventory modeling that provides companies with a single integrated application to optimize all of the primary inventory components including safety stock, cycle stock, and pre-build stock.

What makes this solution unique is the seamless integration of multiple solver algorithms and optimization techniques in a single tool. This approach is necessary in order to fully address the problem of optimizing inventory in a complex supply chain network with multiple echelons, multiple replenishment modes, and finite capacity. This new inventory modeling solution builds on our track record of developing innovative software applications that deliver a major financial impact to our clients.

Many of our Supply Chain Guru® users found that this solution delivered significant cost reduction opportunities. Customer projects include:

• Optimizing retail stocking policies in a multiple echelon distribution network
• Improving the agility of an electronics supply chain through optimizing component inventory placement and postponement strategies
• Minimizing total landed cost of apparel products by trading off sourcing lead time with inventory and transportation costs
• Optimizing the placement of construction products with multiple levels of stocking locations, including pre-build and positioning plans due to seasonal demand and capacity constraints
Please feel free to contact LLamasoft sales to schedule a demonstration or to simply discuss whether this solution fits your specific business needs.
» sales@LLamasoft.com
EDIT Feature Compliments Supply Chain Guru's Toolset

LLamasoft's New External Data Integration Tool - Streamlining the Supply Chain Modeling Experience
LLamasoft recently announced the first release of the External Data Integration Tool (EDIT). This new tool, built directly into the Supply Chain Guru® 6.0.8 user interface, enables supply chain modelers to more efficiently integrate with enterprise data sources in any format or schema and automatically build models for analysis and supply chain visibility.

The new EDIT feature compliments Supply Chain Guru’s existing toolset for data migration and editing which includes a one-touch MSExcel Import/Export utility, Input Pipes for connection to real-time data feeds, Batch Geo-Coding for global location of enterprise supply chain sites, a Mileage Calculator for determination of accurate road distances, and integration to LTL and FTL cost data sources.

The objective of the EDIT functionality is to make modeling easier and accessible to the everyday business analyst, reducing or even eliminating the need for IT resources or database administrators. An easy-to-use interface guides the user through the process of mapping and transforming data from the source location and format into the Supply Chain Guru modeling environment. "
» read more about EDIT
Where We're Going in 2010

Scope East, April Orlando, Florida, April 11- 13th
The SCOPE East event, held at the Rosen Shingle Creek Resort & Meeting Center in Orlando, FL, is a peer led educational and networking forum for senior supply chain executives from many of the world’s leading companies.
LLamasoft will also be participating at the conference as a sponsor and exhibitor, providing demonstrations on their latest supply chain planning and analysis applications.
» read more about Scope East

European Supply Chain and Logistics Summit 2010
7th, 8th & 9th June 2010 | Prague
The European Supply Chain and Logistics Summit (SCL Europe 2010) will reveal how you can adapt your supply chain to meet the requirements of the economic rebound and drive renewed growth.
» read more about SCL Europe

Military Logistics Summit 2010
13th ~16th September 2010 | Washington DC Metro Area
The Military Logistics Summit is a focused event. Check the LLamasoft website
for more details
» read more about the Military Logistics Summit

CSCMP - Supply Chain of the Future Lab will include LLamasoft Technologies
San Diego, CA September 26th~29th, 2010
The theme of Learn, Lead, and Succeed will be embodied in supply chain’s largest global event. Look for LLamasoft in the Supply Chain of the Future Lab area.
» read more about CSCMP-Supply Chain of the Future-Lab

Awards / Contracts

Glanbia Selects LLamasoft Supply Chain Planning Software and Services
Glanbia Selects LLamasoft Supply Chain Planning Software and Services
Glanbia, a well-known Irish food company, recently selected LLamasoft as their partner to help them optimize their supply chain operations. In this partnership, Glanbia will license LLamasoft's strategic planning software, Supply Chain Guru®, and will contract LLamasoft's consulting services to assist with the initial network design initiative.

John Mee, Glanbia Supply Chain Manager commented, "We selected Llamasoft for a combination of both their deep level of engagement at the tendering stage, and because their technology can both model and simulate our end-to-end supply chain operation. It was also a significant feature that Supply Chain Guru can also model and simulate inventory operations within the one single system."
» Read more about the Glanbia Project

LLamasoft Awarded New Contract by the World Bank to Assess IT System Infrastructure
LLamasoft was recently awarded, through competitive bid, a contract from the World Bank to assess the state of the supply chain IT infrastructure and logistics data for six different African countries. This innovative new project builds on LLamasoft's previous work supporting John Snow Inc., USAID, and the World Bank to transform supply chains and make an impact on human health in the developing world.

Conducting a study of the supply chain IT systems of the six countries will allow the World Bank to have a better grasp on the variety of systems that are currently in use, what data they contain, and what type of analysis can be conducted with this data. It is expected that the resulting supply chain data and metrics will continue to advance the possibilities to use competitive benchmarking and regional comparisons to leverage best practices and improve the public health supply chains throughout the developing world.
» Additional News about the World Bank contract

LLamasoft CEO/President Named Supply & Demand Chain Executive
2010 Pros to Know
The Provider Pros to Know is a listing of individuals from a software firm, service provider, consultancy, analyst or research firm who have personally helped clients address the challenges of the recession and prepare for the recovery ahead.

Donald Hicks, President and CEO of LLamasoft, Inc., is a leading industry visionary for supply chain strategy and respected author and speaker on technology applications. Over the last 15 years, Mr. Hicks has personally consulted with and coached supply chain professionals at hundreds of leading companies around the world. Mr. Hicks' in-depth knowledge and experience with optimization and simulation technologies have been applied globally to improve enterprise operations for numerous companies.
» Additional News about Pros to Know
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