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Tompkins Associates
and McHugh Software Uncover Over $8 Billion in Untapped Logistics
Value
Tompkins
and McHugh Will Partner to Unlock Billions in Labor Productivity
Savings
Raleigh,
NC and Waukesha, WI, October 11, 2000—Tompkins Associates,
the leader in total operations excellence consulting and systems
integration, and McHugh Software International, the leading
provider of Logistics Execution Solutions, today announced
a marketing partnership in conjunction with new research that
found there is potential for U.S. companies to drive over
$8 billion in productivity gains to the bottom line through
advanced labor management. This is a significant source of
potential savings and value in a logistics industry searching
hard for efficiency gains amidst a backdrop "whitewater change"
environment.
In conjunction
with the release of their research, Tompkins and McHugh announced
a relationship in which Tompkins becomes a McHugh partner
in implementing McHugh's Logistics Suite®. The relationship
will have a special focus on McHugh's Logistics Suite -Labor
Management system, with the goal of driving billions of dollars
in labor productivity gains to companies around the globe.
"McHugh's
labor management solution offers exciting potential for companies
to increase productivity, quality and labor retention in this
very challenging labor market," said John Spain, Senior Partner,
Tompkins Associates. "Combined with Tompkins' expertise in
distribution operations excellence, we bring to market an
excellent solution that has not been well known by the industry,
but can drive millions of dollars to a client's bottom line."
Said
Dan Gilmore, Vice President of Marketing at McHugh: "These
research results and the Tompkins relationship are exciting
developments for McHugh. There is a tremendous opportunity
for both companies to deliver value to clients, which the
research shows for labor alone represents over $8 billion
in productivity potential in the US, with many more billions
in potential savings internationally."
Under
the partnership agreement, Tompkins will be certified in McHugh's
Logistics Suite components for warehouse, transportation and
labor management, global visibility and supply chain analytics,
becoming a key implementation partner for McHugh. The companies
will also jointly market Logistics Suite - Labor Management
as a standalone solution that can drive productivity gains
for companies with any warehouse management or legacy distribution
software system.
"Despite
the focus on the e-business capabilities of logistics software
companies, the implementation of a solid Labor Management
System (LMS) from a mature supplier can offer rapid payback
and significantly reduced costs," said Steve Banker, Director
of Supply Chain Solutions for ARC Advisory Group. "This is
more likely to be true if the supplier has broad and deep
functionality that also integrates Warehouse (WMS) and Transportation
(TMS) management."
"We have
been searching for the right tool to leverage Tompkins Associates'
deep domain expertise to support improved productivity and
simulation of the cost impact of potential logistics process
options," said Spain. "This latest research confirms the enormity
of the potential and our relationship with McHugh will help
us to unlock the savings for our clients."
In conjunction
with release of the research results, McHugh has made available
a white paper titled Unlocking the Hidden Value of Logistics
that describes how companies can begin to tap significant
labor productivity savings in their own organizations.
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