On November 1, 2012, RedPrairie Corporation and JDA Software announced their merger. Under the terms of the agreement, the entities affiliated with RedPrairie will effect a cash tender offer to acquire all outstanding shares of JDA common stock for $45 per share. My initial positive and negative thoughts on the merger were outlined in Part One of this blog series, while Part Two discussed how the merger might work and some points to consider when evaluating the merger.

After any merger of two large companies in a specific market, there is inevitably a shift in the market landscape, and opportunities become available that a savvy competitor will take advantage of. A look at the current state of the SCM market reveals that we need much more innovation than consolidation in the market, such as new solutions and capabilities in addition to “upgrades” and increased ease of use. RedPrairie/JDA will now have to be focused on product family rationalization, stabilizing their employee base, and retaining customers. But at the same time the smaller vendors in the space such as Logility, Manhattan Associates, Kinaxis, E2open, and ToolsGroup, will, if they’re smart, be focused on innovation, new customers, customer success, and growth—real growth on a global basis.

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My recent article SAP SCM – Stepping Out of (Relative) Obscurity analyzed SAP’s revamped comprehensive supply chain management (SCM) suite, its major components, and its supply chain process bundles. In addition to receiving a number of public comments and ratings by TEC’s readers, I was recently roasted privately during a lunch meeting with a couple of peers.

Namely, they expressed their surprise at the quite positive tone of the article, and at the lack of my typical skepticism (and sometimes sarcasm). Well, perhaps I am a sucker for a good “big picture” vision, and it seemed to me that SAP had created a compelling strategic story. The ideas such as the “Visual Enterprise” sounded refreshing to me, especially after several years of SAP being quiet on the Line of Business (LOB) applications delivery front. At the end of the day, it was important to highlight that the solutions that SAP is offering for supply chain executives expand across the traditional TLA (three letter acronym) boundaries of SCM, product lifecycle management (PLM), customer relationship management (CRM), enterprise resource planning (ERP), manufacturing execution system (MES), etc.

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Part 1 of this blog series analyzed Manhattan Associates’ innovative Supply Chain Process Platform (SCPP)-based analytic applications, including Supply Chain Intelligence (SCI) and Total Cost to Serve (TCS). I discussed other Manhattan SCOPE suite modules as well as the company’s recent evolution from being a mere supply chain execution (SCE) provider.

In Part 2, I zoomed in on the Distributed Order Management (DOM) module, which is a critical “cerebral” SCOPE/SCPP application. I explained the DOM inner workings via a few scenarios of how the system could take customer orders and decides which location is best suited to fulfill them based on inventory on hand, inventory in transit, and complex delivery requirements and preferences.

Manhattan Associates’ platform pieces also enable the vendor to identify new ways to combine solutions to uniquely address industry-specific business problems. At the 2011 National Retail Federation (NRF) Annual Conference, the vendor revealed the next generation of Zero Disappointment Retail (ZDR), a concrete deployment of its SCOPE, SCPP, and multi-channel order management concepts in the retail sector.

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Part 1 of this blog series analyzed Manhattan Associates’ innovative Supply Chain Process Platform (SCPP)-based applications, such as Supply Chain Intelligence (SCI) and Total Cost to Serve (TCS). The Manhattan SCOPE suite’s modules were also discussed as well as the company’s recent evolution from a mere supply chain execution (SCE) provider.

The article concluded that Distributed Order Management (DOM) is a critical “cerebral” application of the entire suite. A smart order management system takes customer orders and decides which warehouse (or any other viable inventory location) is best suited to fulfill them based on inventory on hand, inventory in transit, and delivery requirements.

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My recent article on Manhattan Associates (NASDAQ: MANH) and RedPrairie Corporation stated that these two vendors continue to duke it out at almost every large-scale selection deal for a warehouse management system (WMS), distribution labor management system (LMS), and/or transportation management system (TMS) solution. But over the last few years they have also pursued somewhat different expansion routes from their traditional supply chain execution (SCE) realms, where they will likely face different competitors.

To that end, RedPrairie has been rounding out its solutions set for retail stores while trying to attract the lower-end of the WMS and TMS markets via on-demand applications. For its part, Manhattan has been rounding out a portfolio of supply chain management (SCM) software solutions dubbed Manhattan SCOPE, which stands for “Supply Chain Optimization, Planning through Execution.” Built on a common Supply Chain Process Platform (SCPP), the SCOPE suite combines the following sub-suites to enable overall supply chain optimization: Planning and Forecasting, Inventory Optimization, Order Lifecycle Management, Transportation Lifecycle Management, and Distribution Management.

The article then went a bit deeper into the guts of the SCPP technical underpinning. But SCPP is not a mere “geekware” toolset, since it also comes with its own applications and solutions. These solutions offer the broad supply chain insight and analytics that are critical to an executive’s ability to proactively manage the holistic supply chain. 

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My 2009 series on a few good supply chain management (SCM) players portrayed Manhattan Associates (NASDAQ: MANH) and RedPrairie Corporation as fierce competitors. Indeed, these two vendors continue to duke it out at almost every large-scale selection deal for a warehouse management system (WMS), distribution labor management system (LMS), or transportation management system (TMS) solution.

Curiously, both vendors are now headquartered in Atlanta, Georgia, US, after RedPrairie’s mid-2010 HQ move from Waukesha, Wisconsin, US (which remains a major office that is undergoing a major renovation). Atlanta is also the base for Infor, Logility, CDC Software, Servigistics, and many other enterprise software companies, but I digress.

Over a last few years these two vendors have also pursued somewhat different expansion routes from their traditional supply chain execution (SCE) realms, where they will likely face different competitors. Recently, at the National Retail Federation (NRF) Big Retail Show 2011, I had a chance to meet with both vendors to discuss their strategies. 

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My attendance of RedPrairie Corporations’ RedShift 2010 user conference (for the first time ever) confirmed what I have long sensed about the company’s corporate culture and its install base. That is, the previous blog series on a few supply chain management (SCM) players has, inter alia, expressed my opinions about RedPrairie (formerly McHugh Software), and I believed that these were mostly on target.

However, the recent conference provided a few more eye-opening findings and experiences that cannot transpire through occasional conference calls and brief analyst briefings. In his keynote speech, Michael Mayoras, RedPrairie’s CEO said that the privately held company had a compound annual growth rate (CAGR) of over 20 percent in last 5 years (to estimated ~US$260 million in revenues in 2009). 

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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 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 »