Haarlem / Capelle a/d IJssel (The Netherlands) – In January 2005, Ab Ovo Products BV and Paragon Decision Technology BV signed an AIMMS Service Partnership Agreement. Ab Ovo became a new user of AIMMS in 2004, and is already providing advanced high quality services and solutions to increase the performance and efficiency of their customers.
The partnership of Ab Ovo and Paragon is expected to result in improved solutions for customers who require higher efficiency and enhanced quality of their core operational business processes. Ab Ovo brings the consultancy and solution development experiences, and Paragon delivers the standard optimization modeling tool AIMMS for such solutions. Their combined experience should result in an ongoing improvement of Ab Ovo’s services and the AIMMS software.
Payback time of two months with stock model for ETOS
One of Ab-Ovo’s first successes with using the AIMMS software, is a stock cost reduction project for ETOS, a large Dutch pharmaceutical retail company with 430 stores in the Netherlands. ETOS has set itself the logistic challenge of drastically reducing the stock held, and the associated costs. In the first phase of this challenge, the stock at ETOS’s distribution center (DC) in Beverwijk has been considered. In future phases of the proj
ect, the stock held by ETOS stores will also be considered as an integral part of the process and this will allow ETOS to optimize the complete chain.
An econometric stock model, developed in AIMMS, has been applied to the regular ETOS DC products. With this stock model, it is possible to translate service and economic objectives (e.g. minimised stock) into concrete order parameters (e.g. order volume and timing) while upholding the business conditions and requirements such as reliable base stocks, seasonal patterns, promotional campaigns, on-time delivery, service levels, and order costs. Phase 1 of the project has recently been completed and has already led to significant stock reduction and therefore cost savings without lowering the service provided to the stores. ETOS expects this first phase of this project to have a payback period of only two months.
About Ab Ovo
Ab Ovo is an independent company that delivers high-level, ICT-related services and solutions to its customers. Ab Ovo supports the business operations of its customers with a broad range of competitive, high quality services and solutions in order to contribute to their success. It offers services in the areas of project management, interim management, and consultancy; and its solutions provide design, build, implement, and maintain total applications in the areas of advanced planning and scheduling, optimization, operations research, workflow and process-based EAI, plus WFM/EDM/Content Management etc.