WALTHAM, Mass.--Sept. 11, 2006--ModusLink Corporation, a subsidiary of CMGI, Inc. (Nasdaq: CMGI), today announced a new, customized Storage Management Supply Chain Solution--the first offering in a line of new vertical market solutions tailored to help companies address supply chain challenges specific to their industries. With its new Storage Management Solution, ModusLink is the first and only supply chain service provider in its industry to offer an end-to-end solution for hard disk drive (HDD) supply chain management. This comprehensive new solution helps clients reduce the cost and complexity of HDD management by handling the complete product lifecycle, including materials sourcing and management; build-to-order optimized product configuration; software management; logistics; returns management; testing and repair; and product disposition and remarketing.
"In today's competitive hard disk drive marketplace, manufacturers are dealing with constant technology changes, rapid price erosion, pre-configuration challenges, long supply lead times and high volume returns," said Joseph C. Lawler, Chairman and Chief Executive Officer of CMGI. "All of these factors contribute to increased cost, slower time to market and reduced customer satisfaction for drive manufacturers. ModusLink's new Storage Management Solution is designed to provide companies with a 'one stop shop' for managing drive inventory and processes throughout the entire product lifecycle for maximum return on asset investment. This solution exemplifies ModusLink's strategic approach to helping clients address the needs and challenges specific to their industries and their customers."
For one client--a major HDD manufacturer that sought a more cost-effective way to manage its returns and disposition processes--ModusLink's new Storage Management Solution is expected to save more than $8 million in the first year. With ModusLink now managing these processes, the client will be able to minimize transportation costs and reduce the amount of inventory that previously sat idle, taking up costly floor space and eroding in value, as it waited to be sent to third-party repair vendors. The solution is improving the manufacturer's ability to cost-effectively dispose of excess and obsolete drives by helping them to achieve a higher rate of return, often up to three times more than garnered in traditional asset disposition methods.
The Storage Management Solution includes numerous tailored services that work together to improve the complete, end-to-end supply chain lifecycle for clients in this competitive industry. With its Optimized Product Configuration service, ModusLink provides companies with highly-efficient and flexible build-to-order manufacturing processes that improve demand management for OEM and Retail customers--such as conducting product configuration in low-cost regions or delaying customization until the product reaches a facility closer to the customer or fulfillment site.
In addition to this and other forward logistics services, ModusLink's Storage Management Solution includes tailored Reverse Logistics and Asset Disposition services that provide clients with more cost-effective returns and disposition management for lower transportation costs, reduced excess and obsolescence and increased return on asset recovery. ModusLink tests and repairs the drives, restoring them to their highest possible quality, and then remarkets them on the tertiary market using ModusLink's Online Auction service, www.moduslinkauction.com. ModusLink helps the client sell the refurbished drives under the manufacturers' own brand for maximum exposure or gives them the option of using an established alternative brand for anonymity. ModusLink's remarketing and disposition services help clients maintain margins and garner maximum return on asset conversion.
About ModusLink
ModusLink Corporation is a leading provider of global, end-to-end supply chain management solutions. The company provides technology clients in the software, computing, consumer electronics, storage and communications markets with customized supply chain solutions that improve time-to-market, productivity and customer satisfaction while reducing risk and cost. ModusLink's services include consulting and planning, sourcing and supply base management, manufacturing and product configuration, fulfillment, logistics management, e-commerce and the complete range of aftermarket services. With 41 facilities in 13 countries, ModusLink has the largest global footprint in its industry. The company is headquartered in Waltham, Massachusetts and is a subsidiary of CMGI, Inc. (Nasdaq: CMGI). For additional information, see www.moduslink.com.
About CMGI
CMGI, Inc. (Nasdaq: CMGI), through its subsidiary ModusLink, provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world. In addition, CMGI's venture capital business, @Ventures, invests in a variety of technology ventures. For additional information, see www.cmgi.com.
