South Africa’s Nampak Tissue to implement River Logic cost-to-serve planner to improve internal processes

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South Africa’s Nampak Tissue to implement River Logic cost-to-serve planner to improve internal processes

December 07, 2010 - 04:36

DALLAS, TX, Dec. 6, 2010 (Press Release) -River Logic, Inc., a leading provider of corporate performance management and predictive modeling software, today announced that Nampak Tissue, a division of one of the largest packaging companies of metals, paper, plastics, and glass based in South Africa, has selected a module of Cost-to-Serve (CtS) Planner to improve internal processes to reliably predict the impact of business decisions on total system costs.

"With the ability to do cost comparison between various manufacturing processes and sites, Nampak can allocate manufactured goods to the most profitable supply stream. Additionally, with the solution's rapid what-if capability, we can test the effect of price and cost increases. We'll be able to analyze the impact of changes by viewing our financial statements, in particular the income statement, which will show the net effect on our bottom line," said Rizwan Hassen, Business Director, AFH for Nampak. "In the past, financial analysis of the business as a whole was awkward and time-consuming. Now, we'll be able to rapidly complete a variety of analyses, including at the plant or at the customer level."

River Logic is delivering this lighter version of CtS Planner through its international distributor partner, Business Modelling Associates (BMA). "We've been working exclusively with BMA for 2-years in the South African market. They have a deep understanding of Nampak's requirements and they're providing the technology and domain expertise which will help Nampak address internal and external business challenges. We're delighted that Nampak selected BMA over other vendors. CtS Planner is a new type of costing solution that seamlessly integrates business requirements and operational processes to provide deep visibility into drivers, and it supports rapid, easy-to-use what-if analyses," stated Philip Higginbotham, VP Business Development, River Logic.

CtS Planner gives manufacturers insight into profitability, whether it is generated by product, customer, or activities. With this kind of insight, manufacturers can control expenses; defend against downward price pressure; improve operational efficiencies; and optimize service offerings, product portfolio, and promotions.

At each step in the supply chain process, Nampak will use the CtS Planner module to secure cost information at the product/product family level. Rapid what-if analysis will allow them to test various costing and supply scenarios, and via reporting, unit costs can be analyzed and compared to determine opportunities for profit optimization and product rationalization. The solution will also provide a means for Nampak to validate and update costs that are driven by their ERP system for operations and financial functions.

"This module of CtS Planner will help Nampak find the right balance between containing costs and ensuring profitability. We're pleased with their selection of the solution," said Carlos Centurion, COO for River Logic. "This is just the first step towards a fully integrated value chain. Our solution suite integrates and optimizes planning end-to-end across an enterprise, allowing managers to confidently make more effective and profitable business decisions."

About Nampak Limited

Nampak is a packaging manufacturer headquartered in Sandton, South Africa. The Company has 65 operations throughout South Africa and 25 operations in 10 countries on the African continent. It also has 20 operations in six countries in Europe. Nampak operates in four segments. The metals and glass segment manufactures beverage cans, food cans, aerosol cans, other metal packaging, and glass packaging. The paper segment manufactures corrugated boxes, folding cartons, toilet tissue, and other paper products. The plastics segment manufactures plastic bottles, crates and drums, checkout bags, tubs and tubes, and a range of flexible plastics products. For more information, visit www.nampak.com.

About River Logic

Founded in 2000, River Logic provides Corporate Performance Management (CPM) solutions which meaningfully impact consumer goods companies and health services providers. CPM solutions are built on our predictive modeling and analysis platform, Enterprise Optimizer (EO). EO drives our differentiation and yields significant commercial advantages to partners and clients.

Consumer Goods Companies discover hidden potential through: Cost-to-Serve Planner - provides insight into which customers and products matter most and how they can be managed at the appropriate cost; Integrated Business Planner - enhances S&OP through seamless integration of financials, what-if analyses, and marginal profitability analyses; Trade Promotion Optimization Planner - ensures maximum return on trade spending by analyzing brand and account-level promotion strategies on an ongoing basis; and Network Design & Optimization Planner - optimizes networks to changes in demand, supply, labor, transportation, and outsourcing initiatives. Health Services Providers can improve performance in integrated delivery environments through increased operations visibility with Integrated Delivery System Planner. For more information, visit www.riverlogic.com.