ModusLink Implements New Supply Chain Model for NETGEAR Further Improving European Fulfillment
Optimized Configuration Enables NETGEAR to Further Improve Time to Market, Customer Satisfaction and Return on Investment
Waltham, Mass. June 27, 2006 - ModusLink Corporation, a subsidiary of CMGI, Inc. (Nasdaq: CMGI), today announced that it has successfully implemented a new supply chain fulfillment model in Europe for NETGEAR, Inc. (Nasdaq: NTGR), a worldwide provider of technologically advanced, branded networking products. The new supply chain model leverages ModusLink's Optimized Configuration service, a highly-efficient and cost-effective fulfillment and configuration process designed to speed time to market, increase customer satisfaction, optimize sales potential and increase return on supply chain investment.
Forecasting and meeting demand for consumer products in European markets can be extremely difficult given the multitude of different countries and languages of customers and this becomes even more challenging when companies, like NETGEAR, offer hundreds of customized products. ModusLink is able to reduce the complexities of European supply chain management for NETGEAR by postponing the customization, assembly and kitting for the final product until it reaches the local market. Additionally, transportation costs are reduced since more unfinished, bulk product can be shipped at one time. This supply chain model ensures that the right product is delivered to the right customers, without the need for costly rush orders, to improve the return on investment and increase customer satisfaction and loyalty.
"NETGEAR is experiencing phenomenal growth and the ability to drive efficiency and flexibility through our supply chain enables us to sustain a competitive advantage in the marketplace," said Michael Falcon, Senior Vice President of Operations at NETGEAR. "ModusLink's infrastructure, extensive supply chain expertise and in-depth knowledge of the European market, enables our supply chain to operate smoothly. Customer service is a priority for NETGEAR and the new supply chain infrastructure implemented by ModusLink dramatically reduces the time it takes us to get product into the market, resulting in a positive experience for our customers."
"The consumer networking market is fiercely competitive and industry leaders, like NETGEAR, require excellent planning and execution to optimize sales potential and contain costs," said Joseph C. Lawler, President and Chief Executive Officer of CMGI. "Today supply chain operating efficiency has become a strategic necessity and we are pleased that NETGEAR has chosen to leverage ModusLink's industry-leading solutions to streamline their supply chain infrastructure and sustain their competitive edge. We look forward to helping NETGEAR meet the demands of this high-growth industry for continued growth, success and customer loyalty."
The solution ModusLink implemented for NETGEAR includes local sourcing and supply base management; configure-to-order product customization and final assembly; kitting and documentation management in four different languages; and fulfillment and distribution management.