CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise software provider of on-premise and cloud deployments, today announced that Lakeside Foods, a manufacturer of private label canned and frozen produce, is scheduled to initially implement CDC Factory at its distribution center in Manitowoc, Wis., with plans to potentially expand it to its other plants, as part of its strategy to mitigate rising raw material costs and attain lowest cost producer status.
Lakeside Foods has 15 plants and distribution centers in Wisconsin, Minnesota and Ohio. Depending on how successful CDC Software’s CDC Factory is for Lakeside there are 14 more facilities that would potentially use CDC’s technology.
As price conscious shoppers spur private label growth, Lakeside Foods faces the challenges of increasing production volume while trying to control escalating raw material costs such as steel in a bid to remain the lowest cost producers. As a result, Lakeside chose CDC Factory to help unlock hidden capacity and improve changeover times, mechanical downtime and quality control. A benchmark study, completed by consultants of CDC Factory and the project team at Lakeside Foods have targeted a 10 percent efficiency uplift within a year at one single facility site alone.
"We are delighted this leading multi-plant, private label food manufacturer is scheduled to implement CDC Factory," said Mark Sutcliffe, president of CDC Factory product line, CDC Software. "CDC Factory helps lower production costs, improve margins and deliver rapid performance improvements throughout a plant which helps manufacturers remain price competitive during this price-sensitive post recessionary economic environment."
CDCS is trading at $8.30 up $0.13 or 1.5% on light volume of just 2k. The stock doesn’t seem to be catching the eyes of investors but the company is making money and has a very low P/E ratio.
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