In a recent Y2G Associates Report, entitled “Best-of-Breed and ERP – From Contention to Consensus,” Y2G contends that companies integrating Best-of-Breed (BoB) solutions, such as Servigistics, with existing ERP applications achieve significant operating results with a rapid return on investment (ROI). According to the report, “BoB [service parts management] applications augment investments in back-end ERP and transactional systems by delivering the capabilities required to drive results and transform service operations.” Citing numerous examples from successful Servigistics implementations, Y2G also states, “These [BoB] applications are easier to deploy, deliver more value, and thanks to technology, offer the same level of integration as the ERP applications themselves.”

Additionally, the report includes numerous examples of leading companies integrating the Servigistics solution with their existing ERP solution and achieving significant operating results. The report states, “Success stories abound with the BoB SPM approach. For example, BusinessWeek recently highlighted huge successes at companies like  Dell, Kia, Subaru, Sun and Toshiba in their August 2005 article, ‘Yes Ma’am, That Part is in Stock.’ Subaru first implemented the Servigistics SPM solution at the distribution center level and cut inventory in half. They extended the same SPM instance to help the dealers, which allowed them to transform their business model, increase dealer turns to more than 11x and increase parts revenue by 30%. Others from related industries, such as Volvo, MTD and Huyster and Yale are now implementing Servigistics with similar strategies.”

“Leading automotive and high-technology manufacturers that have integrated the Servigistics Service Parts Management solution with their existing ERP systems have achieved significant results within their service operations,” said David Cahn, CEO Y2G Associates. “These manufacturers have dramatically improved service levels while reducing inventory, effectively positioning their service parts operations as a key profit center for the future.”

“Many of our clients have integrated the Servigistics solution with their existing ERP solutions and achieved significant results and a rapid ROI,” said Eric Hinkle, Servigistics CEO. “The proven financial and operational improvements from integrating Servigistics with existing ERP solutions are unmatched when compared to implementing an ERP solution alone. Anyone in the process of evaluating Best-of-Breed vs ERP solutions for their service parts network should read this report.”