AspenTech Announces New Solution for the Process Industries: ProfitAdvantage(TM)
Aspen Technology, Inc. (Nasdaq: AZPN) today announced the launch of its new ProfitAdvantage(TM) solution for the process industries. The solution enables companies to identify and maximize profit opportunities throughout their entire value chain -- from the supply of raw materials, through the production of goods, to the delivery of final products to customers. (Photo: http://www.newscom.com/cgi-bin/prnh/20000811/ASPENLOGO ) ProfitAdvantage encompasses engineering, manufacturing, supply chain and e-business collaboration technologies in a comprehensive, integrated solution. It leverages AspenTech's 20 years of process industry experience to provide companies with the ability to design, optimize and execute their business processes in real time. ProfitAdvantage replaces Enterprise Optimization(TM) as AspenTech's primary solution for the process market. By addressing the major competitive challenges facing the process industries today, the solution can create substantial economic value. Potential annual returns for a process company can total 4-6% of its yearly revenues, made up of:
* increased revenues of up to 3-5%, from increased throughput, higher average selling price and better customer service
* reduced operating costs of 5-10%, from reduced raw material, utility and logistics costs, optimized product sourcing, lower supply chain costs, and engineering innovation
* improved capital efficiency, with increased inventory turns by 10-30% and decreased capital expenditures of 15%, from optimized performance of manufacturing assets.
"With our new ProfitAdvantage solution, we have taken the concept of Enterprise Optimization to a new level, exploiting our latest collaboration and execution technologies to enable our customers to maximize profits throughout the process industry value chain," says Larry Evans, Chairman and CEO of AspenTech. "We are convinced that ProfitAdvantage can provide process companies with increased benefits because of its integrated approach. The long-term strategic relationships developing with many of our key customers demonstrate their confidence in the economic returns we can create."
Gaining a strategic advantage from IT To gain a strategic advantage from their IT solutions, companies in the process industries -- such as petroleum, chemicals, pharmaceuticals, metals and consumer packaged goods (CPG) -- need to address the unique complexity of their plant and supply chains. ProfitAdvantage enables companies to exploit that complexity, and turn opportunities into real, bottom-line benefits. Specifically, it allows them to:
* make the most-profitable decisions, quickly -- using accurate models, based on real-time information from the plant and supply chain
* execute decisions in real-time -- via an effective execution system, that covers the whole value chain including the plant and the key trading relationships
* collaborate to reduce unplanned variability -- working with their partners in the value chain to reduce costs and inventory, and improve service * exploit sourcing, selling, and logistics opportunities -- making rapid decisions to source cheaper feedstocks or respond to short-term customer requests.
To achieve this, the ProfitAdvantage is made up of a comprehensive set of industry-leading best practices, software and consulting services. Together, they allow process companies to identify the right value chain strategy, and then execute it quickly and effectively.
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