Valeo Transmissions USA is a division of French-owned Valeo, one of the world's leading automotive suppliers. A MAC-PAC XE user since 1999, Valeo Transmissions USA will soon complete a significant change in its business model. As of January 2005, the company's Hampton , Virginia location will be transformed from a manufacturing facility to a distribution facility with only light kitting operations. While the production aspect of the business will be simplified, the order and inventory management aspect is being substantially expanded with the help of MAC-PAC XE.

In the past, Valeo primarily served OEM customers who sent order releases almost exclusively by EDI. While some OEM customers will continue to place EDI orders, that portion of the business will become only about 10% of Valeo Transmission USA's total activity. The other 90% will come from sales of aftermarket clutch products to retail auto parts stores and large auto parts distributors. Those orders come into a customer service department where orders are entered online. Products are ordered and inventoried in bulk containers from Valeo manufacturing locations in Mexico, Brazil, Korea, and France, as well as from other suppliers. The Hampton operation then kits and ships products in single unit retail packages.

This represents a major change in Valeo's business model, and an equally major change in the capabilities required of the company's supporting business system. But with a little help from TDCI consultants to leverage MAC-PAC XE 's inherent flexibility, Valeo has re-engineered and expanded its use of the system to fully support the new environment.

"We considered a couple of alternatives, but we chose to invest in changing the way we use MAC-PAC XE instead of undertaking what would have been a much more expensive and risky project to implement a new system," states Valeo Transmissions USA IS Manager, Greg Nowak.

Besides making certain changes to the portions of MAC-PAC XE that were already in use, Valeo has implemented the distribution module from scratch. In a single visit of a few days, TDCI assessed Valeo's needs and provided training on the distribution module. TDCI then developed detail written guidelines for setting up and changing REF CATs, etc. Valeo personnel did the rest with the on-going guidance of TDCI's Help Desk staff.

"We are very happy with the services we've received from TDCI during this project," adds Nowak. "TDCI's MAC-PAC XE staff really knows the product and has provided us with tremendous value."

Valeo has been especially pleased with the flexibility and capabilities that MAC-PAC XE has provided for their new environment. For instance, Valeo expected to have trouble implementing their complex pricing within the MAC-PAC XE distribution module, but found that it could handle everything they needed with little trouble. As of December, 2004, 20 % of Valeo Transmission USA's business was already going through the new MAC-PAC XE online order entry process. In January 2005 it will reach 50-60%.

Nowak summarizes by saying: "We are very happy with where we are with MAC-PAC XE at this point. We're still working out a few kinks, but by-in-large, the transition has gone as smoothly as we hoped it would, and the system is meeting virtually all of our needs with standard functionality. TDCI has been a great help."

In addition to Valeo Transmissions division, two Valeo Engine Cooling division locations in the United States also use MAC-PAC XE. Those facilities are located in Greensburg , Indiana and Jamestown, New York.

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