SAS® software supports efficient logistics at Amway China
NRF 99th Annual Convention and EXPO, NEW YORK (Jan. 11, 2010) – Using predictive modeling and inventory optimization technologies from SAS, the leader in business analytics software and services, Amway China has developed an advanced Inventory Optimization System (IOS) built with SAS® Forecast Server, SAS® Inventory Optimization and SAS® Enterprise Guide that supports a gradual reduction in stock levels, balances product distribution, and has boosted customer satisfaction to 97 percent. Launched in June 2009, the system enormously improves Amway China’s operational efficiency and shortens replenishment time from the logistics center to retail outlets by 20 percent.
China has become Amway’s largest market, with more than a third of Amway Global’s total sales: Amway China’s 2008 sales revenues soared to CNY 17.9 billion (US $2.6 billion). Amway China ships more than 1,000 different products through 229 stores, 29 home delivery centers, 22 warehouses and a 40,000-square-meter logistics center in Guangzhou. Each year, the company transports products more than 13.96 million km, equal to about 349 times around the earth. Amway’s uniquely diversified “store selling + direct selling + distribution” model – plus frequent marketing promotions that react quickly to market changes – make inventory management a particular challenge that demands flexibility in workflow and among workers.
In order to coordinate fast business growth and adapt information flow to the rapid development of its enterprise supply chain, Amway China decided to expand its current application of business analytics, importing SAS® technology into its supply chain management under a new IOS.
Using SAS, Amway China’s IOS achieves four significant improvements:
Amway has high praise for both the technology and services from SAS. Raymond Hui, Amway Greater China Distribution Vice President, says, “With SAS predictive analysis and inventory optimization, we can keep inventory at the right level at the right time. When business or customer demands change, we can quickly adjust via the flexible inventory optimization system. With the IOS, Amway China can not only reduce logistics costs, but also enhance customer satisfaction and improve its competitive edge.”
“It is a shared goal for excellent enterprises to offer superior customer service via optimal inventory level. Amway leads its counterparts,” says Alex Wong, General Manager of SAS Greater China. “SAS will, as always, provide Amway and other clients with quality products and professional services that help them make fact-based decisions by effectively using relevant data to elevate customer satisfaction and enhance their earning capacity.”
The inventory optimization solution developed by SAS can help companies predict future customer demand and accurately determine optimal inventory, thus lowering inventory costs, shortening response times and promoting customer satisfaction. A host of leading companies in the automobile, retail and other industries have adopted SAS for inventory optimization.
In addition to Amway China, SAS retail customers include Aeropostale, AutoZone, Bakers Footwear, Brooks Brothers, Burger King, Cabela’s, Carrefour, Casino, Casual Male, The Children’s Place, Eddie Bauer, Family Dollar, Hallmark, Hudson’s Bay Company, JCPenney, Kohl’s, Luxottica Retail, Macy’s, Mark’s Work Wearhouse, Marks & Spencer, Northern Tool & Equipment, Office Depot, Sainsbury’s, ShopKo, Sport Chalet, Spiegel Brands, Staples, Tesco, Tilly’s, Tween Brands, Waitrose, Wakefern, Williams-Sonoma and 1-800-FLOWERS.COM.
For more information about SAS® Retail Intelligence Solutions and SAS Customer Intelligence Solutions, visit http://www.sas.com. SAS is demonstrating its solutions at the NRF 99th Annual Show and EXPO in Booth 1337.
About Amway China
As a branch of Amway Global, a world-famous company dedicated to direct selling, Amway (China) Co., Limited is a large cosmetic producer with diversified marketing modes. Starting operation in 1995 with total investment of US$ 220 million, Amway (China) has headquarters in Guangzhou and regional offices in Beijing and Shanghai and more than 6,000 employees in China. www.amway.com.cn
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world
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