SOURCE: FusionOps

October 18, 2005 09:56 ET

FusionOps Revolutionizes Material Collaboration

Uses Rules-Based Technology to Lower Excess Inventory and Reduce Component Shortages

SAN JOSE, CA -- (MARKET WIRE) -- October 18, 2005 -- FusionOps Inc (formerly iSpring), a market leader in material collaboration software, today officially unveiled its revolutionary application designed to eliminate one of the biggest causes of excess inventory and component shortages at manufacturing companies. The application is currently in use at several manufacturers ranging from one of the largest medical equipment manufacturers with global operations to a mid-size contract manufacturer.

In a materials organization, initiatives to lower component costs and reduce excess inventory are often not pursued because buyers spend a disproportionate amount of time on non-value-added activities. Such activities include reviewing a large number of change-orders with changes so minor that they will not affect manufacturing, sending orders manually to the suppliers, chasing suppliers to get delivery confirmations and reviewing supplier exceptions that will not affect manufacturing schedule (such as delivery date exception still within the lead-time or a small quantity exception). As a result, buyers don't have enough time left on their schedule to drive cost reduction initiatives or to process MRP actions such as push-outs, pull-ins and cancels. Excess inventory and shortages often occur because typically less than 40% of the MRP actions get acted upon in a timely manner. Finally, a manual and ad-hoc system provides almost no supplier collaboration metrics, needed to improve and streamline the process.

Current approaches such as supplier portals and Supplier Relationship Management (SRM) systems facilitate sharing of information with suppliers but they rarely reduce the amount of time a buyer spends on the non-value-added activities listed above. As a result, such systems have not been able to significantly reduce inventory-related costs. FusionOps leverages a patent-pending rules-driven architecture to become the first vendor to address this issue. Using user-defined rules, supplier exceptions that are not significant to customer delivery are automatically processed without needing manual intervention from buyers. With over 70% of the supplier exceptions addressed automatically and a supplier portal replacing manual interactions for sending PO/change orders and tracking responses; buyers now have time to address 100% of their tasks. Finally the software provides unique collaboration metrics needed to streamline the inbound materials management process.

"We have significantly streamlined our supplier collaboration processes using FusionOps," said Gary Dankwardt, Global Program Manager of Varian Medical Systems (NYSE: VAR). "Now about 99% of our procurement flows through FusionOps. Using their rules-based material collaboration manager and a comprehensive supplier portal, less than 4% of the material transactions now require manual intervention. With our ability to process MRP exceptions in a timely manner, our component shortages have been reduced by 60% and we have been able to cut our planning cycle time in half."

"Using the FusionOps powered rules-based materials collaboration manager and supplier portal, our buyers now have to manually process a minority of the material transactions," said David Ginsberg, VP of Supply Chain at Sonic Manufacturing, a contract electronics manufacturer. "It frees up their time to process all MRP actions in a timely manner and ensures that no supplier interaction falls through the cracks. As a result, our component inventory turns have increased significantly. Our buyers are now spending more time on value added activities."

"FusionOps brings revolutionary technology to the market through its suite of three products -- a rules-based material collaboration manager that eliminates the need for manual intervention by buyers on most material transactions, a portal for material collaboration and Supplier Analytics that include never seen before collaboration metrics to provide a true picture of the supplier's flexibility, responsiveness and compliance," said "Ram Mohan, CEO of FusionOps. "In fact, we call it a complete portal system, because it combines a traditional portal with a complete rules-based collaboration manager and rich supplier analytics. With a delivery model that includes OnDemand or OnPremise installation, proven customer results and less than six-month ROI, FusionOps delivers incredible value that no materials manager can afford to go without."

About FusionOps

FusionOps is a market leader in material collaboration software for manufacturing corporations. FusionOps solutions are used by manufacturers to increase inventory turns, reduce shortages, improve productivity and lower excess inventory. FusionOps is headquartered in San Jose, California and can be reached at

Contact Information

  • Contact:
    Ram Mohan, CEO