Part 1 of this blog post series expanded on some of TEC’s earlier articles about companies’ need for better pricing management and optimization practices. This series, which focuses on the complexity of pricing and promotions in retailing, was inspired by JDA Software’s recent “edu-nouncement” on leading retailers’ consumer-centric pricing and promotions strategies and Revionics’ recent (and still ongoing) educational series of Web-seminars.

Part 2 of this blog post series analyzed some common retailers’ practices and explained some of the frequently used vernacular. Then the post went into the building blocks of pricing optimization, starting with setting optimal initial (everyday or base) prices.

Part 3 of this blog post series will analyze the two other building blocks of pricing optimization: promotions and markdowns. Then, the article will go into the next generation of pricing optimization according to JDA: “Lifetime Pricing.” Read the rest of this entry »

Part 1 of this blog post series talked about my attendance at the APICS 2009 International Conference in Toronto (Canada) in early October. I attended only a few education sessions, as my visit focused more on exploring the expo floor and talking to the exhibitors.

My overwhelming impression from the conference’s expo floor was that the main value propositions this year revolved around the flavors of demand management, most notably sales and operations Planning (S&OP). This made me think about the reasons for the concept’s (and accompanying software solutions’) renaissance in light of its existence of a few decades.

Read the rest of this entry »

Many people are aware of a reality show on television titled “Jon & Kate Plus 8”, which features a couple that is separated and ready to get divorced. Occasionally couples have disagreements and need to get away from each other to sort things out then come back to the table with new perspectives.  That’s what JDA and i2 have done with their deal from last year. JDA plans (once again) to acquire i2 Technologies. This time around, the offer is for $396 million (USD). Read the rest of this entry »

Part 1 of this blog post series followed the genesis of Manhattan Associates from its inception in 1990 throughout the mid-2000s. During this time, Manhattan Associates was the epitome of an impeccable supply chain management (SCM) software company in terms of market share, growth, profitability, and its product capabilities. Indeed, the company set the industry standard for the supply chain execution (SCE) space and was the envy of its competitors.

But lately, the two competitors that had long looked at Manhattan from behind, RedPrairie Corporation and JDA Software, have been posting much more upbeat news in terms of growth in contrast to Manhattan’s declining revenues. Part 2 analyzed some possible reasons behind that occurrence and focused on RedPrairie’s track record.

Part 3 analyzed the current market dynamics in the retail sector, and explained the ongoing resurgence of JDA Software.

Part 4 of this blog post series will conclude with predictions about what’s in store (no pun intended) for all three renowned SCM vendors. Read the rest of this entry »

While my colleagues Khudsiya Quadri and Gabriel Georghiu diligently attended numerous conference sessions and reported their impressions of each convention day (Day 1, Day 2, Day 3, and Day 4), my much shorter attendance of the APICS 2009 International Conference in Toronto (Canada) in early October revolved mainly around exploring the expo floor and talking to the exhibitors. My overwhelming impression from the conference’s expo floor was that the main value propositions this year revolved around the flavors of demand management.

This was not too terribly surprising, given that the past two years have dispelled any doubts about the advantages of managing demand effectively. First, as an overture to the recession, companies and consumers were battered by a sharp rise in energy costs (especially crude oil), which resulted in sky-rocketing transportation costs and reduced margins.

Then, when the recession came in earnest, they were hit by the precipitous economic downturn, which resulted in an almost unprecedented drop-off in demand (and fuel prices). Many companies were “left holding the baby,” i.e., their hedge transportation contracts that once seemed to be a smart strategy of locking carrier price and capacity.

Read the rest of this entry »

Part 1 of this blog post series expanded on some of TEC’s earlier articles about companies’ need for better pricing management and optimization practices. This series, which focuses on the complexity of pricing and promotions in retailing, was inspired by JDA Software’s recent “edu-nouncement” on leading retailers’ consumer-centric pricing and promotion strategies and Revionics’ recent (and still ongoing) educational series of Web-seminars.

To recap Part 1: due to the phenomenon of the “cross-elasticity” of demand, retailers may want to consider whether promoting an item would result in increased sales volume and, if so, whether that increase would represent incremental revenue or merely cannibalize sales of other items. Retailers have to be able to compare items on promotion against the entire department, product category, and subcategory. Read the rest of this entry »

The “Four Ps” of marketing strategy, also known as the “marketing mix,” are basically applicable to all businesses. TEC’s two-part blog post series in 2008 talked about the importance of pricing management in a down economy. Price and promotion in particular are the lubricants in retailing, although the two remaining Ps–product and place, are indisputably important there as well.

In his guest author article in Retail Info Systems (RIS) News, Wayne Usie, senior vice president of retail at JDA Software, remarks that one doesn’t have to go far to see the impact the economy is having on retailers. The evening news is plagued with store closings, while “going out of business signs” and ominously empty “for rent” spaces seem to pop up on every corner. Read the rest of this entry »

Part 1 of this blog post series followed the progress of Manhattan Associates from its inception in 1990 throughout the mid-2000s. During this time, Manhattan was the epitome of a well-managed supply chain management (SCM) software company in terms of market share, growth, profitability, and its products’ capabilities. Indeed, the company set the industry standard for the supply chain execution (SCE) space and was the envy of its competitors.

But lately, the two competitors that had long looked at Manhattan from behind, RedPrairie Corporation and JDA Software, have been posting much more upbeat news in terms of growth in contrast to Manhattan’s declining revenues. Part 2 analyzed some possible reasons behind that occurrence and focused on RedPrairie’s emergence.

Part 3 of this blog post series will analyze the current market dynamics in the retail sector, and try to explain the ongoing resurgence of JDA Software.  Read the rest of this entry »

The last day of the conference is different in three ways: there is no general session today; we have plant tours in the afternoon; and the exhibitors are gone (which is too bad, because for IBM only you could spend hours talking with all the vendors in their booth). Read the rest of this entry »

Today’s general session showcased people from around the world (Mexico, China, Italy, South Africa, Poland, India, Egypt, US, etc.) and their stories about what work in manufacturing and supply chain means to them. The idea behind this was to show us how supply chain concepts are being embraced worldwide—and the presenters did it by showing media clips and images from different continents. Read the rest of this entry »

Part 1 of this blog post series followed the progress of Manhattan Associates from its inception in 1990 throughout the mid-2000s. During this time, Manhattan Associates was the epitome of an immaculate supply chain management (SCM) software company in terms of market share, growth, profitability, and its products’ capabilities. Indeed, the company was the industry standard for the supply chain execution (SCE) space and the envy of competitors.

But lately, the two competitors that had long looked at Manhatan from behind, RedPrairie Corporation and JDA Software, have been posting much more upbeat news in terms of growth in contrast to Manhattan’s declining revenues. This post analyzes the possible reasons behind that occurrence. Read the rest of this entry »

The 2009 APICS International Conference and Expo is starting next week in Toronto (Canada). One of the educational tracks is focusing on how to manage inventory in a changing economy. As inventory is a challenging issue for all types of manufacturing organizations, regardless of industry. If an organization can manage its inventory without losing focus on demand and where its dollars are being spent, it may achieve its inventory objectives. Gary Gossard (president of IQR International) gave a preview presentation in a webinar in which he pointed out a technique that can be used by organizations to manage inventory and reduce waste during changing economic times. Read the rest of this entry »

Throughout the late 1990s and the mid-2000s, Manhattan Associates was the epitome of a well-managed supply chain management (SCM) software company in terms of market share, growth, profitability, and its products’ capabilities. Simply stated, the company set the industry standard for the supply chain execution (SCE) space and was the envy of its competitors.  Read the rest of this entry »

In the forthcoming 2009 APICS International Conference and Expo, many educational tracks will be covered by industry leaders, and lean is one of them. Since we are in a global economic crisis where every manufacturer, supplier, and producer is trying to reduce cost and minimize waste while increasing production or throughput, I am particularly interested in the “lean” educational track to hear what the experts are saying. Recently, I had the privilege of attending the preview of “Lean for Materials Managers” by Bill Kerber, President of High Mix Lean. Read the rest of this entry »

Part 1 of this blog series depicted the rise and fall of erstwhile public software company Click Commerce based in Chicago, Illinois (US). At the end of the post, I mentioned the merger of Servigistics and Click Commerce’s Service Network Services (SNS) division. The private equity firm Marlin Equity Partners acquired both entities recently with the idea of forming a new combined company to solve the planning, optimization, execution, and analytics challenges associated with delivering post-sale service.

Part 2 then presented two blog entries with opposing views on the merger and its prospects. It raised the point as to whether any prospective company in need of service-oriented solutions would look for an all-in-one service lifecycle management (SLM) solution (platform) per se, or would maybe start evaluating the service capabilities of their incumbent enterprise resource planning (ERP) provider, possibly combined with more focused best-of-breed vendors. Read the rest of this entry »