The HDD supply chain management software is the first offering in a line of new vertical market solutions tailored to help companies address supply chain challenges specific to their industries, said ModusLink, a supply chain management subsidiary of CMGI Inc.
In a competitive hard disk drive marketplace, manufacturers are dealing with constant technology changes, rapid price erosion, pre-configuration challenges, long supply lead times and high volume returns, according to ModusLink. All of these factors contribute to increased cost, slower time to market and reduced customer satisfaction for drive manufacturers, the company added. ModusLink's new storage management solution is designed to provide companies with a “one- stop-shop” for managing drive inventory and processes throughout the entire product lifecycle for maximum return on asset investment, ModusLink said.
The new storage management solution from ModusLink is expected to save more than US$8 million for an undisclosed HDD manufacturer client, according to the company. With ModusLink now managing these processes, the client will be able to minimize transportation costs and reduce the amount of inventory that previously sat idle, taking up costly floor space and eroding in value, as it waited to be sent to third-party repair vendors, ModusLink said. The solution is improving the manufacturer's ability to cost-effectively dispose of excess and obsolete drives by helping them to achieve a higher rate of return, often up to three times more than garnered in traditional asset disposition methods, ModusLink added.
The storage management solution includes numerous tailored services that work together to improve the complete, end-to-end supply chain lifecycle for clients in the HDD drive industry, according to the company. With its Optimized Product Configuration service, ModusLink provides companies with highly-efficient and flexible build-to-order manufacturing processes that improve demand management for OEM and Retail customers, such as conducting product configuration in low-cost regions or delaying customization until the product reaches a facility closer to the customer or fulfillment site, the company said.
ModusLink's Storage Management Solution includes tailored Reverse Logistics and Asset Disposition services that provide clients with more cost-effective returns and disposition management for lower transportation costs, reduced excess and obsolescence and increased return on asset recovery, according to ModusLink. ModusLink tests and repairs the drives, restoring them to their highest possible quality, and then remarkets them on the tertiary market using ModusLink's Online Auction service, ModusLink said. The company helps the client sell the refurbished drives under the manufacturers' own brand for maximum exposure or gives them the option of using an established alternative brand for anonymity, ModusLink added. ModusLink's remarketing and disposition services help clients maintain margins and garner maximum return on asset conversion, it added.
