10 Dec 2002

i2 and Shell Complete Design of New i2 Downstream Oil Solution Suite.


i2 Technologies, Inc. (NASDAQ: ITWO), the leading provider of end-to-end supply chain management solutions, and Shell Global Solutions today announced that they have completed the design phase of i2 Downstream Oil, a modular, end-to-end supply chain management suite for the downstream oil industry. One of the first elements, i2 Demand Planner Downstream Oil, is beginning to be deployed at Shell Oil Products U.S.


i2 Downstream Oil has been designed to improve business operations from crude oil acquisition to terminal and depot management by streamlining the complex matrix of logistics, manufacturing, marketing and sales activities of the downstream oil value chain. Leading energy and chemicals companies are examining their supply chain practices to find opportunities to improve operational efficiencies and achieve bottom line savings.


"The development and successful implementation of a fully functional, integrated supply chain solution for downstream oil could revolutionize the industry and change the face of how the business is run," said David M. Ritter, leader in Downstream Oil/Supply Chain for Cap Gemini Ernst & Young's Management Consulting Practice. "Our work indicates a solution which enables complete physical and financial visibility from crude to customer, combined with near real-time decision making, could increase downstream profitability by 50 cents per barrel on average."


Based on i2's platform of supply chain solutions, i2 Downstream Oil will include modules for demand planning and fulfillment, supply chain planning (across a network of manufacturing and distribution sites), and distribution and refinery scheduling. The software has been designed to support collaboration that can lead to improved flexibility across the supply chain and faster decision making while maintaining visibility over the entire supply chain. The solution is intended to produce the following customer benefits:


  • Optimized margins across the entire supply chain network and within individual refineries
  • Increased revenues from greater flexibility and responsiveness to market opportunities
  • Reduced operating costs through improved stability of refinery and distribution operations
  • Reduced crude acquisition costs via improved alignment of crude selection with end product demand
  • Reduced overhead due to synchronized decision support system


i2 and Shell began collaborating on i2 Downstream Oil in March 2002. During the initial design phase, engineering teams from i2 and Shell defined the specifications for aligning supply chain operations across multiple countries, demand areas and refinery production centers.


The strength of the approach of the two companies is the combination of i2's leading edge IT technology and solutions with Shell's extensive technological experience.


"Traditionally, the supply chain for the petroleum industry has been driven by supply rather than demand. This joint development agreement changes the rules in terms of combining tools and business processes that are designed to help petroleum companies focus their strategy from a demand perspective," said Greg Lewin, incoming CEO of Shell Global Solutions. "i2's market leadership in supply chain management solutions and its track record of developing standards for other industries makes them the ideal partner for this opportunity."


Sanjiv Sidhu, i2 CEO, added: "The downturn in the economy has reinforced the need for companies to control costs and improve responsiveness to market demands. i2 is committed to customer success through the development of supply chain solutions that drive standardization and reduce downstream logistics and manufacturing across the extended value chain. Together, i2 and Shell intend to set the standard for supply chain management in the downstream oil industry and provide value to customers through improved business processes that are designed to drive bottom line results."


"The global energy industry faces significant challenges as well as tremendous opportunities. Working closely with Shell demonstrates our strong commitment to the industry and our dedication to delivering solutions that meet the unique needs and requirements of the market," said Amir Kazmi, vice president and general manager, i2 Global Energy & Chemicals business unit. "The completion of this critical phase in design is a significant milestone in our efforts to help customers in the petroleum industry transform their value chains and achieve overall savings." 


i2 and Shell Global Solutions will jointly market i2 Downstream Oil on a global basis.

About Shell Global Solutions 

Shell Global Solutions is a network of technology companies within the Royal Dutch/Shell Group. It provides technology and consultancy services primarily to the oil and energy industries. The staff of 3000 combine operational experience, technology and consultancy skills to enhance the performance of their customer's businesses. Shell Global Solutions works with Shell and also with other oil businesses on a worldwide basis. Learn more about Shell Global Solutions at www.shellglobalsolutions.com.


About i2 

The leading provider of end-to-end supply chain management solutions, i2 designs and delivers software that helps customers optimize and synchronize activities involved in successfully managing supply and demand. More than 1,000 of the world's leading companies, including seven of the Fortune global top 10, have selected i2 to help solve their most critical supply chain challenges. Founded in 1988 with a commitment to customer success, i2 remains focused on delivering value by implementing solutions designed to provide a rapid return on investment. Learn more at www.i2.com.


i2 is a registered trademark of i2 Technologies US, Inc. and its subsidiaries.


i2 Cautionary Language 

This press release may contain forward-looking statements that involve risks and uncertainties including forward-looking statements regarding i2's ability to develop future functionality, the customers' ability to implement or integrate i2 solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to current or future i2 solutions. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors, which could impact i2's financial results and cause actual results to differ materially from those in forward-looking states, please refer to i2's recent filings with the SEC, particularly the Form 10-K filed April 1, 2002 and Form 10-Q filed November 14, 2002. i2 assumes no obligation to update the forward-looking information contained in this news release.


For further press information, please contact:


i2 in Europe

Melania Domene

Sarah Sherman

Shell Global Solutions
Andrew Higgins

i2 in the U.S.
Beth Elkin

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