British Airways Paves Way For Personalized On-Board Supplies With System ESS

Business Wire, March 24, 1997

LONDON--(BUSINESS WIRE)--March 24, 1997--British Airways has launched a project with the potential to have individual passengers favourite items ready and waiting when they board a BA flight. A major overhaul of the airline's catering supply computer systems will pioneer the use of software powerful enough to track supplies to individual routes, flights and passengers. For BA customers this may eventually lead to on-board magazines, food and personal items being loaded on flights according to known passenger preferences.

The core of the project is the installation of new software, System ESS from Industri-Matematik International (IMI) (NASDAQ NM: IMIC), which will integrate and streamline the supply of several hundred million items every year to flights at over 160 airports world-wide. This powerful system will calculate in-flight requirements and match them with the individual demands of the customer. As well as improved customer service, British Airways calculates that System ESS will produce annual savings of between 3-5 million pounds (approximately US$ 4.75 - 8 million) by eliminating waste and reducing inventory stockpiles, with a pay-back on investment expected within just one year. System ESS will enable the airline to reduce inventory and hold the optimum level of stock to meet customer demand by cross checking inventory levels against passenger bookings and by co-ordinating deliveries from a global chain of over 300 suppliers. Installation of the initial system will begin in early 1997, to be completed by the end of the year. Once the benefits of the system have been established, British Airways plans to roll it out to other centers.

According to Simon Ratcliffe, head of supply chain and systems for British Airways Catering, System ESS will give British Airways the most advanced supply chain capability in the airline industry. "For industries with complex supply chains the evidence is clear that integrating the systems of suppliers, distributors and customers is a highly cost-effective way to make big improvements in business performance and customer service. We have evaluated our options thoroughly and concluded that System ESS offers us the best process functionality available, with proven capacity to handle very high volumes, rapid implementation times and the ability to support international operations."

Stig Durlow, CEO of Industri-Matematik International Corp, commented: "British Airways chose System ESS because it adds value beyond their immediate functional requirements. We were able to show how System ESS could be used in the future to enhance British Airways marketing and brand programs and deliver highly visible customer service benefits."

System ESS is a UNIX-based, client/server software solution that provides capabilities for synchronizing the demand chain, including order management, demand replenishment, price and promotion management, physical distribution, demand chain monitoring, global organizational management, electronic commerce, customer and product management and decision support. It manages the information flow of customer order requirements back through the manufacturing enterprise to improve logistics productivity and value-added service levels for fast-moving, high-volume industries, such as wholesale/retail, industrial packaged goods and consumer packaged goods.

British Airways

British Airways Group is the world's largest international passenger airline with record pre-tax profits of 585 million pounds in 1995-96. In that same year the British Airways Group as a whole, including Deutsche BA and TAT, carried on its fleet of 293 aircraft a total of 36.1 million passengers and employed a staff of 55,296. It also has one of the most extensive networks, serving some 175 destinations in 83 countries. British Airways is owned entirely by private investors - with 235,000 shareholders. Its record of success has been built upon quality service provided by a dedicated workforce, combined with marketing and continued cost reduction. The Group's future plans to deliver business efficiencies worth 1 billion pounds will be achieved through a combination of reducing costs and improving asset utilization.

Industri-Matematik International

Headquartered in Stockholm, Sweden, Industri-Matematik International Corp. (IMI) is a leading supplier of demand chain management solutions for major manufacturers and wholesale distributors of fast-moving, high-volume products. The company has strong technical expertise in global logistics management from its 30 years in the industry and more than 150 logistics management systems implemented worldwide. Its customers include Ahlsell, Alpina, Campbell Soup Company, Canon, Carlton and United Breweries, First Brands, Hormel, NMD, Spicers, and Unisys.

Editors: For IMI company and product information, and press releases, access the IMI site on the World Wide Web at http://www.im.se.

CONTACT: PR Contact: Julie Redard/Dan Mees, Copithorne & Bellows,

(617) 450-4300, E-mail: julie.redard@cbpr.com