Avanade® Automotive Solution Helps Haldex Reduce Inventory, Increase Productivity and Improve Quality

Business Wire, March 7, 2007

Haldex Streamlines Manufacturing Processes and Reduces Costs with Avanade's Lean Enterprise Management Solution for Microsoft[R] Dynamics AX[TM]

SEATTLE -- Avanade Inc., a global IT consultancy, announced today that it has delivered a comprehensive enterprise business solution to customer Haldex, a leading global automotive supplier, that has played a pivotal role in helping the manufacturer achieve significant gains in business performance. By supporting key elements of its lean transformation program, the solution has helped Haldex reduce inventory by up to 35 percent, increase productivity up to 50 percent, and drive improvements in product quality by up to 25 percent.

"Given the global manufacturing market today, we believe that lean manufacturing is a key component of our strategic survival," explained Donovan Dean, CIO, Haldex, "and the Avanade Automotive solution is a core component in our implementation strategy. Any medium to large manufacturer should evaluate Microsoft Dynamics AX and the Lean Enterprise Management capabilities from Avanade to improve throughput costs, lead times and quality."

In 2003, Haldex designed a corporate methodology, known as The Haldex Way, to streamline manufacturing processes using lean manufacturing principles and practices. A holistic solution, The Haldex Way called for a pull-based business model, so that products would be manufactured based on customer demand rather than forecasts. By combining Avanade's experience with Microsoft Dynamics AX, lean manufacturing and supporting Microsoft technologies with Haldex's business innovation methodology, Avanade and Haldex developed a comprehensive and easy-to-use business system that supports The Haldex Way. The solution reduces inventory and increases visibility into the supply chain, enabling near real-time updates of costs in the general ledger and ordering replenishment. It also accelerates processing for sales and expenses.

"The Haldex Way is an innovative and comprehensive program that brings together elements of continuous improvement in people, processes and the technology to deliver long-term improvements in all operations," said Kim Gable, General Manager, Enterprise Business Solutions for Avanade. "By leveraging the flexible Microsoft Dynamics AX platform and by using the advanced features of Avanade's Lean Enterprise Management solution, Haldex is eliminating waste and generating value for their customers and across their entire supply chain. Haldex should be commended for its innovative planning and use of technology and stands as a model for the others in the automotive industry."

Haldex was recently selected by Microsoft for special recognition as the 2007 Pinnacle Award Winner for Overall Excellence for outstanding business achievements. The Pinnacle Awards, established in 1997, are presented yearly and recognize Microsoft Dynamics customers that have achieved notable accomplishments using Microsoft Dynamics applications. Haldex will receive recognition in San Diego on March 14th at Convergence 2007, Microsoft's annual customer event.

Avanade's industry expertise and adaptable, integrated, and cost-effective ERP solutions for automotive suppliers, industrial equipment manufacturers and high-tech manufacturers enable customers to increase productivity and boost operational efficiency. Avanade has successfully implemented Microsoft Dynamics AX for customers across North America, Asia, and Europe.

About Avanade

Avanade is a global IT consultancy dedicated to using the Microsoft platform to help enterprises achieve profitable growth. Through proven solutions that extend Microsoft technologies, Avanade helps enterprises increase revenue, reduce costs, and reinvest in innovation to gain competitive advantage. Our consultants deliver value according to each customer's requirements, timeline, and budget by combining insight, innovation, and the talent of our global workforce. Additional information can be found at www.avanade.com.

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