System Design Advantage (SDA) And Choice Logistics To Deliver First End-to-End Inventory Asset Management (IAM) Solution

Industry leaders partner to provide best-of-breed logistics, asset management solutions, and services with global reach

BLOOMINGTON, MN and NEW YORK, Jan. 26, 2004 –
System Design Advantage, LLC, the leading provider of parts replenishment and repair solutions and Choice Logistics, Inc., a global leader of service asset supply chain solutions, today announced a broad, strategic alliance to deliver the industry’s first integrated logistics and parts/repair solution. These Inventory Asset Management (IAM) services would include: central stock inventory, dedicated on-site inventory, field inventory, repair and replenishment in a one-source solution.

The move expands SDA’s capabilities in the emerging market for virtual-managed inventory asset services, a subset of the $1.7B service parts market, and positions Choice as the leading provider of mission critical third-party logistics services.

"When it comes to aftermarket service, parts availability and speed are king," said Tim Minahan, vice president of supply chain research at Aberdeen Group. "In some industries service response requirements have shrunk to four hours or less. Inconsistent delivery and frequent stock-outs can put a company out of business. Together, SDA and Choice offer an inventory pool and delivery network that has the potential to help companies maximize fill rates, reduce inventory risk, and, most importantly, maintain asset uptime and customer satisfaction."

This watershed alliance includes the tight integration of technologies, global marketing and selling of targeted and client specific solutions.

“SDA customers are recognizing the immense value to be gained in augmenting current inventory and logistic infrastructures, said Jim Sahli, founder and CEO of SDA. “This alliance broadens our service capabilities by enabling us to integrate Choice's proven logistics management network and with SDA’s enterprise-wide inventory management strategy.”

The integrated solution is expected to dramatically impact
the service supply chain with its variable inventory cost and worldwide logistics capability. The will simplify service asset management, delivering greater cost savings, efficiencies and a competitive advantage to expanding service organizations. Companies will be able to seamlessly ensure that the right part is in the right place at the right time across the service supply chain. These processes include direct and indirect inventory sourcing and procurement, repair, replacement and replenishment, order fulfillment and logistics.

”The complementary combination of SDA's asset management experience and Choice's logistics network in the mission critical spare parts industry will create real value to our collective and future client base(s),” said Rob Kass, President of Choice Logistics. “This unprecedented alliance will enable companies to rapidly build and exploit lucrative opportunities, enabling them to precede the next curve in the emerging service economy.”

“The strategic alliance provides our current and future customers with unmatched solutions and resources.” said Sahli. “The expanded breadth and reach will more rapidly extend the benefits of the combined offerings to companies of all kinds and sizes and in all geographies.”

“This join offering will provide a greater competitive advantage by reducing overall service delivery costs and allowing us to quickly expand into new markets,” said John Strauss, VP of Service for Sarcom Inc. “By seamlessly providing direct and indirect inventory sourcing and procurement, repair, replacement and replenishment, order fulfillment and logistics; companies will now be 99.9% assured that the right part will be in the right place at the right time across the entire service supply chain.”