Twinlab gets a prescription for lower costs and integrated efficiencies

Twinlab found that systems that had worked well when it was a small business were inadequate after it grew to a $300 million multinational health company. It sought to improve its responsiveness within an increasingly competitive consumer goods industry by unifying disparate business processes and focusing on its core competencies. Twinlab turned to IBM for an integrated e-business platform that would give it accurate, realtime visibility into inventory, help it communicate across divisions and enable it to scale to meet customer demand.

Twinlab's explosive growth had left it with five divisions in five different locations. Databases and other IT capabilities were distributed across these locations, creating redundancies that complicated coordination and created inefficiencies. Administration of this complex IT environment wasted resources and raised total cost of ownership (TCO). Additionally, the IT infrastructure failed to provide the realtime visibility into inventory, fulfillment and other supply chain operations that Twinlab desired.

Recognising that a new application or layer of technology would not address business issues, Twinlab turned to IBM for a comprehensive approach to IT issues, business processes and organisational requirements. Twinlab and IBM Business Consulting Services integrated five corporate divisions, implementing a comprehensive inventory management system, consolidated databases and streamlined operations and communications. The solution was based on an end-to-end SAP solution running on the IBM xSeries. An iSeries running DB2 handles operating system issues, database management and networking. For technical and functional support based on delivering maximum business value, Twinlab employed IBM's Application Management Services (AMS), which uses an integrated approach to resolve a wide range of application challenges. The IBM Help Desk ensures that users get immediate support when needed.

IBM provided Twinlab with an on demand solution with a resilient foundation that allows Twinlab to respond rapidly to customer demand and drive enhanced revenues. Twinlab now has realtime visibility into its assets and supply chain across all five divisions, enabling focused and efficient operations. Communications and data are integrated across the enterprise, and security is improved. Variable costs, including TCO, are lower, and downtime has been virtually eliminated. Applications for quality management, personnel administration, production planning, sales and distribution and other operational support have increased productivity and effectiveness. IBM AMS provides a safety net for ongoing support and the flexibility to use resources in response to fluctuating customer demands. Twinlab can now focus on its core competencies and better differentiate itself in the competitive consumer goods marketplace.