CDC Software’s CDC Factory Solution Helps Improve Plant Productivity at Leading Manufacturer of Sauces and Dressings

Ken’s Foods to Implement CDC Factory at its Three Plants


Shanghai, Atlanta, September 20, 2011 — CDC Software Corporation (NASDAQ: CDCS), an enterprise software provider of on-premise and cloud deployments, announced that its CDC Factory manufacturing operations management (MOM) solution has been implemented at Ken’s Foods, Inc., a privately-held producer of sauces and dressings, and that this implementation is on track to deliver seven to eight percent efficiency improvements within a year at its Marlborough, Mass. plant.

Ken’s implemented and went “live” with CDC Factory at its Marlborough plant within six weeks. Two of its other plants, located in McDonough, Ga, and Las Vegas, Nevada are scheduled to implement the enterprise manufacturing intelligence technology in the next few months.

Founded in 1958, Marlborough, Mass.-based Ken’s Foods is a privately held manufacturer with two distinct business operations servicing their Retail Grocery Products and Food Service divisions. Ken’s currently produces and packages more than 2,500 stock keeping units (SKUs) of dressings and sauces.

Ken’s has experienced rapid growth which required consistent investment in capital projects to meet capacity spikes. In addition to this initiative, the executive team recognized the need to uncover latent opportunities, as well as improve baseline productivity within their existing plant network. As a result, Ken’s needed to improve their measurement and management approach in the workplace to replace the inaccurate and cumbersome manual data collection systems that were in place.

With a substantial volume of changeovers and an entrenched culture on the shop floor, the executive team needed to integrate these initiatives outlined above, along with a long-lasting change management program that could be re-applied consistently across the rest of the facilities.

After considerable research, Ken’s identified CDC Factory as the right solution to help achieve these initiatives. They based their decision on CDC Software’s consultative approach, along with CDC Factory’s packaged technology specifically designed for the food industry. CDC Software also provided Ken’s with a CDC Factory benchmark audit which gave them a detailed project scope that was cost-effective, pragmatic and identified where a rapid ROI justification could be targeted.

According to Bob Merchant, COO of Ken’s Foods, “Truthfully, the CDC sales team was less like a sales team and more like a solution provider. The team could talk our language and understood our challenges since they have extensive experience working with food manufacturers. We also learned from customer site visits that we could go “live” on CDC Factory in about six weeks, which was a very compelling benefit for us.”

Merchant added, “CDC Factory also has been widely accepted by our shop floor workers, the ones who need to use this system on a day-to-day basis. Not only has CDC Factory minimized their cumbersome paper work, but it also has helped improve the company’s quality assurance record keeping.”

“We are delighted that CDC Factory can help Ken’s meet their capacity demands as they continue to grow,” said Mark Sutcliffe, president of the CDC Factory product line at CDC Software. “CDC Factory offers a back-to-basics solution that can help lower production costs, improve margins and deliver rapid performance improvements throughout a plant. That is why more and more food manufacturers are choosing CDC Factory to help them battle escalating commodity prices and operate efficiently through this slow-recovering economy.”

CDC Factory integrates the functionality of shop floor data capture, packaged metrics like Overall Equipment Effectiveness (OEE), Constraint analysis, manufacturing analytics and scorecards, continuous improvement capabilities and paperless quality management. By converting the investments already made with MES or shop floor data acquisition into actionable intelligence across the enterprise, CDC Factory provides a seamless flow from day to day factory floor activity through to board-level intelligence.


About CDC Factory

CDC Factory is a packaged manufacturing operations management system that transforms manufacturing performance by empowering people to make real-time actionable decisions. CDC Factory is a platform that is used to standardize improved daily work control practices and formalize the continuous improvement initiatives already in place. CDC Factory integrates the functionality of shop floor data capture, packaged metrics like Overall Equipment Effectiveness (OEE), analytics and scorecards, continuous improvement capabilities and paperless quality management. The technology is combined with a proven change method that focuses on developing a structure of daily performance reviews to drive better performance every run, every shift, every day. The process develops operator skills so they are able to drive their own improvements and is deployed typically in less than six weeks per factory. For more information, visit: www.cdcfactory.com.

About CDC Software

CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is an enterprise software provider of on-premise and cloud deployments. Leveraging a service-oriented architecture (SOA), CDC Software offers multiple delivery options for their solutions including on-premise, hosted, cloud-based Software as a Service (SaaS) or blended-hybrid deployment offerings. CDC Software’s solutions include enterprise resource planning (ERP), manufacturing operations management, enterprise manufacturing intelligence, supply chain management (demand management, order management and warehouse and transportation management), global trade management, e-Commerce, human capital management, customer relationship management (CRM), complaint management and aged care solutions.

CDC Software’s acquisitions are part of its “integrate, innovate and grow” strategy. Fueling the success of this strategy is the company’s global scalable business and technology infrastructure featuring multiple complementary applications and services, domain expertise in vertical markets, cost effective product engineering centers in India and China, a highly collaborative and fast product development process utilizing Agile methodologies, and a worldwide network of direct sales and channel operations. This strategy has helped CDC Software deliver innovative and industry-specific solutions to 10,000 customers worldwide within the manufacturing, distribution, transportation, retail, government, real estate, financial services, health care, and not-for-profit industries. For more information, please visit www.cdcsoftware.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, and includes statements relating to our beliefs regarding any performance improvements that may be seen by utilizing CDC Factory or any of our solutions, our expectations regarding the ability of our solutions to help increase capacity, lower production costs, improve margins, deliver rapid performance improvements, battle escalating commodity prices, operate efficiently, improve efficiency, improve baseline productivity, reduce changeovers, minimize paperwork, improve customers’ measurement and management approach, and help our customers grow, our expectations regarding the speed of any implementations, our beliefs regarding customer and market acceptance of our CDC Factory solution, our beliefs regarding CDC Factory’s ability to provide real-time workforce empowerment and real-time visibility into operating metrics, beliefs regarding the suitability of CDC Factory for any particular business or customer, our ability to manage change within an organization and incorporate best practices, our beliefs regarding the adoption of CDC Factory by food manufacturers and the reasons therefore, our ability to continue to grow in the future, and other statements we may make. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements including, among others: the conditions of market; the continued ability of CDC Factory solutions to address process manufacturer's business requirements; demand for and market acceptance of new and existing manufacturing operations management solutions; and development of new functionalities which would allow companies to compete more effectively. Further information on risks or other factors that could cause results to differ is detailed in our filings or submissions with the United States Securities and Exchange Commission, including our Annual Report on Form 20-F for the year ended December 31, 2009, filed with the SEC oin June 1, 2010, and those of our ultimate parent company, CDC Corporation, located at www.sec.gov. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. Results will vary from customer to customer based upon particular facts and circumstances. The company makes no representations or warranties herein regarding its products and services. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise. Historical results are not indicative of future performance.

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CDC Software
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