Metro-North Railroad Purchases SmartForecasts to Improve Service, Reduce Inventory, and Save Money
Smart Software's demand planning software selected to help manage $100 million parts inventory and improve service performance
Belmont, Mass., March 16, 2011 -- Smart Software, Inc., provider of
industry-leading demand forecasting, planning, and inventory optimization
solutions, today announced that Metro-North Railroad (MNR) has purchased Smart's
flagship product, SmartForecasts®, as part of a company-wide service
improvement and inventory reduction program. MNR, the nation's second
largest commuter railroad, serves 275,000 passengers each weekday in the New
York City metropolitan area, operating 1,193 engines and rail cars over 765
miles of track. It will use SmartForecasts to reduce inventory stocking
levels for its 40,000 active service/spare parts, valued at almost $100 million,
while improving parts availability in support of daily operations.
A large percentage of MNR's parts inventory experiences "slow-moving",
intermittent demand. This sort of demand is especially difficult to
forecast, and its presence can lead to expensive purchases of excess safety
stock. MNR's inventory stocking challenge is compounded by the need to
manage parts availability between two central distribution centers and 13 manned
physical storerooms, which oversee a total of 66 virtual inventory sites.
Seeking substantial improvement in its forecasting and inventory planning,
MNR issued a Request for Proposals, and ultimately selected SmartForecasts as
the best overall solution. "As part of our evaluation process, we asked
each of the finalists to forecast MNR's parts consumption, using real MNR data,"
said Richard Price, Chief Material Officer for MNR. "SmartForecasts
substantially exceeded the forecast accuracy of its nearest competitor.
This ability, combined with the product's ease of use and the company's
demonstrated competence serving the transportation industry, made Smart Software
our best choice. We expect that the implementation of SmartForecasts will
enable us to significantly improve the availability of critical parts while
reducing our inventory and safety stock margins."
SmartForecasts® demand planning, forecasting and inventory optimization
software offers unique, patented statistical solutions to forecast intermittent
demand, a particularly challenging aspect of service parts management, as well
as a complete suite of automated forecasting and planning methodologies.
By automatically identifying the right method for each part, SmartForecasts can
significantly reduce the amount of inventory required to meet a defined level of
"Today's economy places a premium on doing more with less," said Charles N.
Smart, CEO of Smart Software. "This is especially true of inventory
management, particularly among public and quasi-public enterprises like MNR,
where budgets are under exceptional scrutiny. We look forward to helping
MNR streamline its parts inventory planning, and demonstrating the potential for
improvement to its peers nationwide."
About the Metropolitan Transportation Authority and Metro-North
The Metropolitan Transportation Authority (MTA), a public
benefit corporation chartered by the New York State Legislature in 1965,
operates the nation's largest public transportation system. The MTA serves
the 14.6 million people living in the 5,000-square-mile area fanning out from
New York City through Long Island, southeastern New York State, Connecticut and
New Jersey. Metro-North Railroad, one of seven independent agencies within
the MTA, is the nation's second largest commuter railroad. Its main lines
run northward out of Grand Central Station into suburban New York and
Connecticut. West of the Hudson River, Metro-North's lines operate from
New Jersey Transit's Hoboken terminal and provide service to Rockland and Orange
counties. Founded in 1983, MNR and its 5,920 employees serve 275,000
commuter rail passengers each weekday, operating six rail lines with 120
stations and 1,193 rail cars and engines over 765 miles of track.
About Smart Software, Inc.
Founded in 1984, Smart Software, Inc.
is a leader in providing businesses with enterprise-wide demand forecasting,
planning and inventory optimization solutions. Smart Software's flagship
product, SmartForecasts, has thousands of users worldwide, including customers
at mid-market enterprises and Fortune 500 companies. Customers with
significant service parts requirements include Montreal Transit, Prevost Parts
(Volvo Bus), Motor Coach Industries, Otis Elevator, Disneyland Resorts, General
Electric, and Siemens. SmartForecasts gives demand planners the tools to
handle sales seasonality, promotions, new and aging products, multi-echelon
hierarchies, and intermittently demanded service parts and capital goods
items. It also provides inventory managers with accurate estimates of the
optimal inventory and safety stock required to meet future orders and achieve
desired service levels. Smart Software is headquartered in Belmont,
Massachusetts and can be found on the Internet at www.smartcorp.com .
SmartForecasts is a registered trademark of Smart Software, Inc. All
other trademarks are the property of their respective owners.
For more information, please contact Smart Software, Inc., Four Hill Road,
Belmont, MA 02478.
Phone: 1-800-SMART-99 (800-762-7899);
FAX: 1-617-489-2748; E-mail: firstname.lastname@example.org
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