Customer reduced inventories by 35% and slashed expediting costs by more than 50%

Atlanta, GA (September 27, 2005) – Logility, Inc. (NASDAQ: LGTY), a leading supplier of collaborative solutions to optimize the supply chain, today announced that one of its customers, a manufacturer of electronic components for the OEM and aftermarket auto industry, is featured in a new AberdeenGroup research report, “Best Practices in Sales and Operations Planning.”

The report recognizes the Auto Electronics Component Manufacturer for success in integrating demand planning, supply optimization and reverse logistics. The company had experienced supply chain challenges after suffering from an “inventory balloon” in 2003, which led to excess production and carrying costs. With a business that depends on the return of used components as the core material from which to cost-effectively build products to meet new demand, the company needed to gain better control of its supply chain and implemented an aggressive program aimed at combining best practices in demand forecasting, supply optimization and sales and operations planning.

For the initial phase of the program, the company established ongoing dialogue with key retailers on their demand and core return and instituted a weekly planning meeting with the manufacturing plants to give them better forward visibility to anticipated demand. In addition, the company required a technology solution that would “seamlessly align manufacturing requirements and production schedules with forecasted demand, based on very specific and challenging scenarios that mirrored the company’s global operations and reflected the best practices path it was determined to follow,” the report notes. Logility Voyager Solutions? for Demand Planning, Inventory Planning, Supply Planning and Global Sourcing was selected, after a rigorous review of technology providers, to help manage inventory levels and the challenges of their complex global supply chain.

“Logility was selected based on its ability to demonstrate these core requirements, and its flexibility and capability to develop the unique requirements imposed by the returns issues. Logility was the vendor that took the opportunity to heart, and found the way to model reverse logistics into a single forward-looking model,” the report states.

The auto electronics company focused the success of the program on two specific areas, inventory reduction and cost reduction due to excess expediting and manufacturing costs from the mismatch of returns and sales. “The program has been in effect for almost two years and has exceeded the planned objectives on all counts,” the report notes. “Inventory levels have been reduced from an average of 30 to 35 days of supply down to 14 to 25 days, with a 17% reduction in year-end inventory levels and an additional 17% to 20% reduction in clear sight. Excess expediting costs have also been reduced by more than 50%.”

“By integrating product and reverse logistics demand and supply management into a single integrated business process and application structure, a company can identify the root cause of potential problems more quickly and take action before the problems progress and adversely affect sales, operating costs or inventory levels,” said Stan Elbaum, Aberdeen senior vice president, Fulfillment Research, and author of the report. “With Logility, this Auto Electronics Component Manufacturer was able to achieve an impressive level of performance improvement by increasing demand visibility, synchronizing supply and automating their S&OP process.”

Visit www.logility.com to download a copy of the complete AberdeenGroup research report, “Best Practices in Sales and Operations Planning.”