McDonalds Europe Confirms Successful Implementation of Manugistics' Advanced Forecasting and Replenishment Solutions

Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of demand-driven supply chain management solutions, has announced that McDonalds Europe has successfully implemented its advanced Forecasting and Replenishment solutions enabling the company to make more informed decisions on likely demand, the availability of products and shipment delivery.

The system is already deployed and live in France and Germany where it is meeting the goals of increasing McDonalds Europes responsiveness to market demand, reducing company costs and further optimising McDonalds existing supply chain. McDonalds Europe now plans to roll out Manugistics advanced Forecasting and Replenishment solutions in the UK, Sweden and Austria. The food service retailer then plans to deploy Manugistics solutions in its operations throughout Europes major countries within two years.

McDonalds Europes supply chain, in the countries already deployed, is supported and operated by its logistics partners LRServices (France) and Alpha Management (Germany).

Business scope for the Manugistics solutions include all food and non-food products, franchised and company-owned restaurants, distribution centres, as well as dedicated and non-dedicated suppliers. The functional scope covers sales forecasting at item and restaurant level over a one-year horizon and takes into account a wide variety of factors including likely promotional and competition impacts. The Manugistics solutions will also enable planners to model 90 day replenishment plans across the McDonalds Europes supply chain and simulate supplier capacity constraints for critical items.

The Manugistics solution was seamlessly integrated into the legacy execution system, and has proven to be an advanced and robust backbone for the planners on the McDonalds Europe integrated supply chain, said Olivier Chasseloup, Supply Chain Director for LRServices. The appointment of Manugistics with a world-wide remit has also resulted in first class local consulting and support services. We have already formed a strong basis for a lasting partnership.

Thomas Schachner, McDonalds Senior Director of Global Logistics and Supply Chain Integration added: McDonalds Europe intends to strengthen its leadership and competitive advantage through on-going service level and efficiency improvements. These are delivered through an integrated supply chain approach, supported by market-leading applications of Manugistics. Through high-levels of forecast accuracy, supply chain visibility and decision support, we have already achieved payback, with outstanding gains in the areas of restaurant inventory levels and in-restaurant efficiencies including product and recipe usage yields as well as reductions in wastage, transport and purchasing costs. Based on these very significant results across a network of nearly 2,000 European restaurants live as of today, we shall be rolling out aggressively across the rest of the region.

Jean Claude Walravens, President of EMEA at Manugistics added: We are very pleased with what we have accomplished for the McDonalds Europe team already. We believe that by implementing Manugistics solutions, McDonalds Europe has moved one step closer to optimising its supply chain which will allow it to serve customers even better.

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