"Being a small company, we do not have the resources in-house to reach the masses. Partnering with IBM provides us with the depth and breadth in both marketing and technical resources to successfully penetrate the market."
— Richard Vaccaro, President & CEO, Valogix LLC
Valogix LLC, located in Saratoga Springs, NY, designs, develops, and sells inventory planning, optimization, and analytics software to small and medium sized enterprises ("SME"). Since 1988, the founders of Valogix have been innovators in advanced inventory planning, optimization solutions. Valogix solutions address four major industries: Aftermarket Service & MRO, Distribution, Light Manufacturing, and Retail.
The Market Opportunity
Better management of inventory is critical to small businesses in today's turbulent economic environment. Businesses that rely on short-term credit to finance inventories are particularly challenged. As credit disappears, businesses that cannot buy fresh inventory from cash flow or savings could run out of options quickly.
The automated planning tools that Valogix provides improve inventory investment and allow SMEs to take advantage of the same kind of planning and optimization technology used by major corporations around the world – at a fraction of the cost. By automatically forecasting, replenishing, and optimizing inventory, employees are empowered to meet customer and supplier demands more efficiently and at dramatically lower costs. Dramatic cost reductions, improved productivity, and increased customer satisfaction are benefits received within months of implementation. Inventory reductions of 20% to 40% or more in the first year are common with savings in the hundreds of thousands of dollars.
The IBM Strategic Advantage
To help deliver this important proposition to SMEs, Valogix, in partnership with IBM, is launching the Valogix Expert Series Program. The intent is to provide pragmatic insight and help for distributors to reduce their costs. Each session will contain "how to" information from the experts and topics include "Releasing Cash Hidden in Your Inventory", "Identifying and Solving Inventory Problems", and "Developing an Inventory Planning Strategy." The sessions will be available via webcasts, whitepapers and video throughout 2009.
The goal of the program is to help SMEs gain real inventory reductions and cost savings, at a time they may need it the most. "IBM and their powerful presence and marketing capabilities are critical to help us drive this message and convert interested prospects into satisfied customers", explained Vaccaro.
The Equity Investment Firm
Pegasus Capital Advisors, L.P., investors in Valogix, also sees the tremendous value in partnering with IBM. Pegasus is a U.S.-based private equity fund manager that provides creative capital and business solutions to middle market companies across a wide variety of industries.
"IBM's recognition of the value of Valogix software helped us get comfortable that we were making an investment into a company that would be able to grow to scale and gain recognition in the marketplace." Shaun Collyer, Pegasus Capital Advisors.