Ability Solutions has secured a grant of R1.5 million from the Support Programme for Industrial Innovation (SPII) for the delivery of its Ability - Inventory Optimization software. The product is scheduled for release in the third quarter of this year. SPII is a programme of the Department of Trade and Industry (DTI) which is administered by the Industrial Development Corporation.
Walter Leicher, Vice President Strategy for Ability - Inventory Optimization, says the company received the funding as it SPII`s criteria for innovation. This is a rand-for-rand project, which means recipients have to invest the same amount as the funder, the Department of Trade and Industry.
"I was impressed with the company`s ability to commercialise a product, its project management systems and the professionalism of the project planning. In addition, it is helping to reverse the technology brain drain and make SA a world player in the IT industry," says Darryl Aberdein, senior fund manager at the IDC.
"The grant was awarded to Ability Solutions because its technology and strategy is innovative and its methodology well-developed and well-established. It also has a strong management team in place, a thorough understanding of the industry, sufficient global structures to assist it in obtaining necessary information, and a product which is competitive worldwide."
Leicher says the Ability - Inventory Optimization product is designed to give companies the power to reduce their inventory holding while significantly improving their customer service levels. By using state of the art algorithms to map demand against the complexities of real-world supply chain variables, Ability - Inventory Optimization enables customers to drive their business strategy into each and every fulfillment decision. The product will make extensive use of neural network technology and incorporate artificial intelligence.
Ability Solutions` strategy with the product will be to move it towards being a revenue driver and profit accelerator and bring "cutting edge research to cutting edge technology". Ease of integration and speed of implementation will be key factors.
The reason Ability Solutions sought the grant was to expand its research projects in alliance with various South African universities.
"This project also provides us with an opportunity to establish a relationship with a government organisation such as the IDC," says Leicher.
Applicants for this funding are assessed by SPII on the following evaluation criteria:
Managerial ability, specifically in the field of the management of product development.
Financial ability to successfully complete the proposed development and commercialisation.
The ability to manufacture and market products, or to have them manufactured and marketed, or to implement a process.
In addition, project proposals are evaluated according to the following criteria:
The innovation of the proposed product/process (it must represent a significant technological advance and should have a commercial advantage over existing products).
The marketability of the product (or the product manufactured as a result of the process) locally and abroad.
Compliance with international standards (including environmental).
Furthermore, "a significant portion of development and subsequent production must take place within South Africa".
The SPII lists among its conditions the submission of "an annual evaluation report to the DTI for a period of three years after project completion, commenting on sales, income, profits, foreign exchange earnings, employment and contribution to tax resulting from the project".
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Ability Solutions
Ability Solutions, a subsidiary company of JSE-listed Ixchange, is a leading provider of supply chain optimization solutions. We help companies accelerate their profitability by providing specialist solutions that address the dynamic needs of businesses in the New Economy. Ability`s flexible, scaleable and robust solutions address the complex problems distributors face as they seek to drive profitable growth. Ability`s solution set includes the Ability* - eCommerce Fulfillment, Ability* - Inventory Optimization and Ability* - Financial Management solutions.
Ability provides targeted solutions intended to guarantee its customers` ability to realize a rapid return on investment as a result of streamlining their supply chain process, improving their operational efficiencies, effectively managing their suppliers and increasing customer satisfaction. Ability has offices worldwide, with headquarters in Atlanta, GA., USA.
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