SOURCE: Intentia

May 23, 2005 09:00 ET

Intentia Predicts Continued Boom in Private Label Manufacturing

Retail Trends Expose Opportunities and Challenges for Quasi-Manufacturers

SCHAUMBURG, IL -- (MARKET WIRE) -- May 23, 2005 -- Retail Systems Booth 1343 -- Intentia, the global enterprise solutions provider for the manufacturing, distribution and maintenance industries, today outlined five trends in the retail industry that offer key opportunities and significant challenges as retailers' role in the supply chain significantly increases -- an outcome of steady growth in the private label manufacturing industry.

According to the Private Label Manufacturers Association (PLMA), private label brands, also known as store brands, account for one of every five items sold every day in U.S. supermarkets, drug chains and mass merchandisers. These brands represent more than $50 billion of current retail business, and are achieving new levels of growth every year.

"As the private label sourcing industry continues to grow, the line between retailers and suppliers becomes blurred. Retailers become quasi-manufacturers and have to oversee initiatives previously outside of their domain, such as supply chain, logistics, distribution and tracking," said Bob McKee, fashion industry solutions director, Intentia Americas.

"With this responsibility, comes the need and knowledge for supply chain visibility, management systems, and the understanding of how to effectively source goods in a global economy," said McKee.

Intentia solutions help manufacturers create lean, visible supply chains that result in operational efficiencies for over 3,000 company sites globally.

The top five industry trends facing retailers as they evolve into manufacturers include the following:

Stocking Tomorrow's Trends Today -- In today's demand-driven economy, consumers are accustomed to receiving immediate gratification, which means shorter product life cycles. Manufacturers that maintain comprehensive and accurate product forecasts can meet customer demand to build brand loyalty.

Stitching the Global Landscape -- With the abolition of trade quotas, manufacturers are facing increased global competition, an opportunity to hunt for new partners. US-based manufacturers should assess supply chain operations to ensure it is utilized effectively. The cost of goods and time to market is essential to profitable operations.

Avoid Inventory Glut -- Seasonality in retail manufacturing can create a high risk of inventory exposure -- which for quasi-manufacturers directly impacts the bottom line. Effective management of the product mix, both seasonal and non-seasonal items, can counteract this danger.

Regulations Change, Compliance is Key -- Fines can be harsh for violators of new federal and state legislation for human rights, environmental concerns, and Homeland Security standards. Manufacturers need to dedicate resources to ensure compliance, both internally and within partner operations, and to ensure quality and delivery guidelines are also met.

Manage Complexity -- Global manufacturing is a complex set of business processes that connect languages, currencies, time zones and regulations. Do not underestimate the complicated nature of the entire supply chain from raw material to finished product. Using systems to harness the processes and data can mean the difference between staying in business and business failure.

Bob McKee, 25-year veteran of the fashion industry, will participate in a panel discussion of inventory management at Retail Systems on May 26 at 12 p.m. CT in Room E253A. He is also available for media interviews.

About Intentia

Intentia is the only global enterprise solutions provider 100% dedicated to bringing software applications and consulting services to companies whose core processes involve manufacturing, distribution and maintenance -- what we call the "make, move and maintain" market.

--  100% of our resources are committed to this market.
--  100% of our software is designed for this market.
--  100% of our experience is in serving this market.
    
Intentia customers are typically medium to large organizations that operate in complex supply chains with tough competition and limited internal resources. They require the reliability, experience and security of a substantial supplier with the flexibility and specialist knowledge of their industries and processes.

Intentia solutions are built from the ground up with the specific needs of these customers in mind, and the ability to grow and change easily with their businesses. They simplify complex processes, anticipate customer demands and deliver added value in both the short and long term -- making them the intelligent choice.

Intentia was founded in 1984 and serves over 3,000 customer sites in some 40 countries around the world. Our business solutions currently comprise enterprise management, supplier relationship management, customer relationship management, supply chain management, value chain collaboration, enterprise performance management and workplace management.

Intentia is a public company traded on the Stockholm Stock Exchange (XSSE) under the symbol INT B. Visit Intentia's Web site at www.intentia.com

Intentia
The Intelligent Choice

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