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 »

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 »

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 »

Within the product lifecycle management (PLM) arena, there is a category of solutions with a very specific industry focus: fashion and retail PLM solutions. For example, Lectra calls its solution Fashion PLM; at PTC, its FlexPLM solution is created for retail, footwear, and apparel; TradeStone Software names  its solution Merchandise Lifecycle Management (MLM)  (instead of PLM) and focuses on helping retailers to design and develop private label merchandise. No matter how vendors describe their solutions, it seems certain that now PLM manages not only “trees” but also “grass.” 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 »

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 »

As ERP becomes more and more of a commodity, vendors are faced with the challenge of delivering an affordable core offering by delivering just the right mix of “standard” back-office capabilities and the vertical-specific capabilities demanded by the customers they serve. In light of this reality, some vendors have positioned themselves as best-of-breed ERP vendors that serve certain key verticals or microverticals by delivering comprehensive solutions to meet the specific needs of their clients; while other vendors pitch an ERP “platform,” allowing partners or clients to fill in the industry-specific needs.  In any event, both cases demonstrate the increased maturity level of buyers of enterprise software. Read the rest of this entry »

To achieve success in today’s retail industry, retailers that are small to midsize businesses (SMBs) need to effectively meet their customers’ needs on time, with the right price, in the right quantity—and at the right place, with the right promotions. All of these things can be very overwhelming for a retailer. To get them, retailers require tools that support effective and precise operations. In this volatile global economy, every retailer is trying to beat the competition and win over the customer base. The winners in this race are the retailers that can provide customers the supreme (winning) combination of product, price, and customer service, and do it without affecting profitability. Read the rest of this entry »

What does the “P” in PLM really mean? The question seems ambiguous since PLM may refer to many different things (such as an airport, a university, a railway company, etc.). Okay, so let me clarify what I mean. The PLM I’m talking about here is product lifecycle management. Now, the answer seems quite simple. However, my purpose is not to trick you with this silly question, but to explore the true meaning of “product” under the PLM setting.

So, what is a product in the light of product lifecycle management? Read the rest of this entry »

Part II of this blog series explained ToolsGroup’s value proposition for achieving service level excellence in distribution environments. The point of the Service Optimizer 99+ (SO99+) suite’s name is that a “99+ percentage” represents the gold standard in customer service levels, and it takes a product purposely built to achieve service level excellence and to support such a high standard.

ToolsGroup’s latest version of software continues to build on the functionality needed to reach this goal.

Back to Mitigating Long Tails

Having put the necessary pieces in place, over the past year ToolsGroup has turned a particularly keen eye toward how to succeed in environments with a “long tail” demand. The long tail theory originally held that in an environment such as the Internet-based retailers (so called “e-tailers”), which is less affected by physical manufacturing, product and distribution constraints than so-called “brick-and-mortar” retailers, demand will spread across a huge array of items (a.k.a., stock-keeping units or SKUs). Read the rest of this entry »

Part 1 of this blog series expanded on some of TEC’s earlier articles about companies’ need for better pricing management and optimization practices. It also introduced the FUD (fear, uncertainty & doubt) notion about how appropriate these solutions might be in a down market. It appeared that at least the service sector (including spare parts pricing) remains largely impervious to the economic climate (if not even bolstered by a downturn).

So, What’s in Store for Pricing Management Solutions?

Given that the way the manufacturing suppliers position their products and pricing changes with the economy, natural question is whether pricing solutions providers will suffer or blossom these days. Namely, during good times positioning is about increasing revenue, and that case has been proven by pricing optimization solutions. However, in bad times it is rather about lowering costs where pricing doesn’t seemingly help, but rather procurement-oriented applications. Read the rest of this entry »

Not long ago, I wrote about the pricing management and optimization software market, and in particular depth about two bullish vendors and fierce competitors in the business-to-business (B2B) manufacturing and distribution segments: Zilliant and Vendavo. Look for similar write-ups down the track on DemandTec, Symphony Metreo, and on the Servigistics pricing solution (whereby the last will focus solely on spare parts pricing and planning).

While I do not plan to cover the esoteric pricing solutions used by airlines or hospitality companies (e.g., Rapt or PROS), there is also a vibrant pricing market in the retail sector, as seen with SAP’s acquisition of former KhiMetrics and Oracle’s similar acquisition of ProfitLogic. In addition to TEC’s article entitled “The Retail Battleground for Pricing Management”, you can find more information about SAP’s perspective on the pricing market here, and Oracle’s pricing offering here.

But, the dates of all these articles will indicate that they were done during a still-solid economic milieu worldwide. It doesn’t take a genius to realize that we are now in quite a down economy. Given the dreaded “R” world hovering over us, are there any trends (or hunches) on how manufacturing, distribution and retail organizations use pricing solutions? Namely, do the enterprises have different pricing approaches in good vs. bad economic times? Read the rest of this entry »