GE Operation Services Launches First Web-Based Collaborative Supply Chain Management System; New Global VMI Service Brings e-Supply Chain to Customers

Business Wire, Oct 25, 2000

Business/Technology Editors

PITTSFIELD, Mass.--(BUSINESS WIRE)--Oct. 25, 2000

GE Operation Services, an operating unit of General Electric Company (NYSE:GE), has announced the availability of GE Global VMI, the first totally collaborative supply chain management service that allows for inventory monitoring, forecast broadcasting, and logistics analysis. The Web-based system allows suppliers and customers to better manage inventory, streamline processes and reduce costs for improved profitability.

"Expedites, demurrage, and excessive inventories are often the hidden costs associated with inefficient supply chain management" says Steve Pittman, General Manager, GE Operation Services. "The GE Global VMI service allows for supply chain monitoring and control 24 hours a day, seven days a week. Its inventory management system can deliver up to a 50 percent inventory reduction and elimination of expedited and returned orders, leading to a 5:1 return on investment. This opens up new opportunities in supply chain efficiency for suppliers and customers."

GE Global VMI system allows customers and suppliers to be more cost efficient and productive. By linking the customer and the supplier real time via secure access to the Internet, Global VMI reduces inventory, stock-outs, returned and rushed shipments, as well as demurrage charges.

Real-Time Inventory Control

By capturing real-time inventory level and trend data and incorporating collaborative forecast and dynamic estimated time of arrival, the service reduces customer inventory. Global VMI also eliminates shutdowns and allows for better planning of shipments, reduces safety stocks, and creates a digital transaction process.

The service includes Six Sigma data analysis to calculate statistical safety stock levels and re-order points based on specification limits in the system. The service also includes variation analysis for usage and transit time, and quantifies value delivery. Based upon customer feedback, new feature enhancements are added on a monthly basis to create more customer value.

A Turnkey System

The GE Global VMI service is a turnkey system that covers hardware, training and installation. GE Operation Services uses a rigorous process to ensure fidelity of the data and statistical tools to help set replenishment triggers for the users.

In-depth training of the customer service team is also provided. This training is specifically targeted to the customer and the supplier to help them turn use of the system into bottom-line dollars. Business process development occurs during this phase, and GE uses their proprietary Change Acceleration Process (CAP) to speed realization of Global VMI benefits. CAP training helps customers and suppliers better assimilate the system into the workplace's daily operating procedures and processes.

The system is also linked to the supplier and customer Web pages to allow for quick access to additional information. Constant access to the data from any Internet-connected computer is provided with standard browser access. Secure Socket Layer security is used to ensure the integrity of the data.

The GE Global VMI service comes with data acquisition and communication hardware, sensors for each vessel, full physical and electrical installation, initial system parameter programming, and a three-year on-site hardware and installation warranty are included. Six Sigma tools are then used to calibrate the sensors to ensure data accuracy.

Please visit GE Operation Services on the web at http://www.geops.com