SOURCE: DemandPoint

April 18, 2007 08:00 ET

Pelion Systems and JCIT International Merge to Form Company Focused on Enabling Demand-Driven Fulfillment

Merger Pairs Pelion's Industry-Leading Lean Technology With JCIT's Demand Flow Consulting and Education Expertise to Help Companies Streamline the Value Chain and Collapse the Order-to-Cash Cycle

ENGLEWOOD, CO -- (MARKET WIRE) -- April 18, 2007 -- Pelion Systems, a market leader in Lean Manufacturing Operating Systems, and JCIT International, the pioneer of award-winning Demand Flow® Technology (DFT), have entered into an agreement to merge companies and create a new organization focused on enabling Demand Flow Fulfillment for customers. The combined entity will be known as DemandPoint. Terms of the deal were not disclosed.

DemandPoint leverages Pelion and JCIT's combined expertise in operational excellence and business process optimization driven by Lean and Flow principles. The objective of the combined company is to dominate the market for demand-driven fulfillment strategies that improve cash flow and working capital by streamlining the value chain and collapsing the order-to-cash cycle.

Together, Pelion and JCIT offer a proven methodology and technology framework for tying an organization's business model to its operating platform and linking all operational activities to customer demand. This involves not only manufacturing but all of the functional units involved in executing an order, including sales, marketing, procurement, distribution, logistics and finance.

"As global competition intensifies, enterprises are continually driven to improve operational performance in order to reduce costs, preserve margins, and increase cash flow," states the Aberdeen Group in a forthcoming research study titled "The Order to Cash Cycle: Integrating Business Processes to Improve Operational Performance."

"The lifeblood of a company flows through the order-to-cash cycle whether in a manufacturing, distribution or service provider environment," the study continues. "In order to preserve the health of a company, it must flow freely and unobstructed, and not fall short of the goal." To request a copy of this report once it is published, contact cindy.jutras@aberdeen.com.

DemandPoint delivers education, assessments, engagements and tools and technology in a comprehensive, integrated offering designed to help a company take control of its value chain and enable perfect order performance. The focus is on empowering executives in all aspects of the business with the right strategies, tools and incentives to facilitate the most flexible and lowest cost method of meeting customer requirements.

More than 3,500 organizations have leveraged DemandPoint's consulting and technology capabilities since 1984 and over that same period, more than 100,000 students in over 50 countries have benefited from DemandPoint's training and educational expertise. DemandPoint brings an unparalleled track record of driving business process change and performance improvements for such industry leaders as General Electric, American Standard and Flextronics.

Former GE CEO Jack Welch has heralded the company's DFT approach as an "absolute business discipline for every one of us from the factory floor to the office. It is another way to simplify the business. It is a way to put order into everything you do."

That strong foundation provides the basis for helping companies implement demand-driven fulfillment strategies today.

DemandPoint will benefit from a highly experienced management team comprised of executives from both companies that average more than 20 years industry experience. Pelion's Chief Executive Officer Kevin Fallon will serve as CEO of DemandPoint, while JCIT's Chief Executive Officer Tony Gorski will serve as president of the merged entity.

Other members of the executive team include Dean Gilliam, who was previously chairman of JCIT, will drive the Operational Excellence practice of DemandPoint as executive vice president of Strategic Accounts. Darrell Beitel, a renowned supply chain expert who served as head of client services for JCIT, will assume the role of chief operating officer for DemandPoint.

Dave Gleditsch, who drove several very successful Demand Flow implementations during a previous tenure at JCIT and architected a software platform based on Flow principles over the past six years as Chief Technology Officer for Pelion, will lead the company's Education arm as dean of the Demand Flow Institute. The Assessments and Engagements and Tools and Technology arms will be led by Jeff Lane and Justin Griep, respectively, both long-term veterans of JCIT and Pelion.

"We are excited about the uniquely talented team and comprehensive offering we are able to provide as a result of this union," Fallon said. "Many companies have made strides in improving operations, but this work is still being done in a far too granular manner. Our goal is to help companies evolve from a tactical operational improvement mindset to strategic, coordinated programs with predictable results that tie back to the business model and impact the bottom line significantly."

"There is much common DNA between our two organizations that enable us to hit the ground running immediately in delivering new value for our customers and the broader market," Gorski added. "Demand Flow has been the hallmark of JCIT and Pelion for many years, and both companies have proven its value as a low risk path for executives to enable responsive, cost-effective value chains. We look forward to building on the heritage of education, consulting and technology excellence as DemandPoint."

About DemandPoint

DemandPoint empowers companies to streamline the value chain, achieve perfect order performance and collapse the order-to-cash cycle, leveraging deep roots in operational excellence and business process optimization. We architect and implement demand-driven fulfillment strategies that bridge a company's business model to its operating platform, resulting in improved cash flow and working capital. DemandPoint is headquartered in Englewood, CO, with executives located throughout North America, Europe and Asia. To learn more, please visit www.demandpointinc.com.

About Pelion Systems

Pelion Systems provides Lean Manufacturing solutions that drive flexibility to help companies with complex processes and production environments to achieve rapid transformations and continuous improvements in areas such as labor, inventory and shipping costs while simultaneously improving cycle time and delivery capabilities. Pelion's technology integrates easily with and extends the value of existing ERP, SCM, and plant-floor systems. Solutions are able to scale from a single facility to an extended enterprise implementation, applying Lean and Flow principles to synchronize production, supply, and distribution and form a true demand-driven network. For more information, please visit www.pelionsystems.com.

About JCIT International

JCIT International is a technology transfer company committed to the development and delivery of the highest quality educational and engagement programs within the manufacturing industry. Founded in 1984, JCIT has trained more than 100,000 students and 3,500 companies worldwide in the tools and technology of Demand Flow® Technology (DFT), a patented, mathematically-based, business strategy that enables companies to respond faster and more efficiently to customer demand. Current clients include: GE, Ingersoll Rand, NACCO, American Standard, John Deere, and Boeing. For additional information, please visit www.jcit.com.

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