Company: IBM Corp.
Headquarters: Armonk, NY
Size of Company: 1,000 or more employees; more than $1B in revenue
Industry: Miscellaneous manufacturing
Primary Product Line: Servers and systems, software, storage, OEM systems, Internet security, semiconductors, point-of-sale and self-service offerings
Name of Project: Non-traditional Demand Supply Integration - Economic Optimization MRP
Project Objective: To increase reuse of non-traditional supply — used and new returns — and reduce new buy expense; reduce scrap, inventory carrying costs, write-offs, and waste landfill impact
Technologies Employed: IBM WIT proprietary linear programming application, Economics Demand Supply Optimization process, MRP integrated with ERP
Accomplishments/ROI: Reduced new buy expense; improved balancing of excess lease returns to satisfy field service demand; reduced landfill. Initial development cost was roughly $300,000 with annual maintenance cost in support of business process changes of $30,000 per year; new buy expense mitigated $49.2 million in 2008