Differentiation breeds success
Siebel Systems, Manhattan Associates, Vastera, RedPrairie, EXE Technologies, Descartes Systems Group, Prophet 21, Optum, Blue Martini, Catalyst International, LIS, irista, HighJump Software, Provia Software, Firepond, ClearOrbit, PipeChain, Enigma, Tecsys, Entigo Corp., Access Commerce, Categoric Software
Staff -- Manufacturing Business Technology, 7/1/2003 6:00:00 AM
6 Siebel Systems
Defending its turf
As the leading supplier of customer relationship management (CRM) software, Siebel is poised to benefit from manufacturers' growing interest in this technology.
"Currently, manufacturing has the lowest penetration rate when it comes to the use of CRM technology," says Rod Johnson, who tracks the CRM market for AMR Research, Boston. "But we see this sector doing the lion's share of investment in CRM when the economy improves."
That's good news for Siebel, but it's also a rallying cry for enterprise resources planning (ERP) vendors that have built their own CRM applications and are now competing with Siebel for manufacturers' CRM dollars. Johnson says the ERP vendors have a strong case to make in the CRM market—specifically the argument that they can offer immediate links to back-end applications like supply chain planning and financials that are essential for manufacturers to execute a successful CRM program. He also believes Siebel has a strong manufacturing-oriented story, starting with solutions it has developed for companies in specific industries.
Curt Lockton, general manager of Siebel's high-technology and manufacturing business unit, says these solutions mirror the best CRM-related business processes being used in these industries. "We have documented more than 1,000 business processes," he says. "Some of them can be executed completely within the Siebel application suite, while others extend out to other applications."
So far, manufacturers including 3M, York International, and Caterpillar have bought Siebel CRM software, and he expects that list to grow as more manufacturers adopt CRM technology.
Lockton says Siebel's integration platform—called the universal application network, or UAN—makes it easier to execute processes that require connections to other vendors' applications. He even argues that it's more difficult for some ERP vendors to link their own CRM packages with their core ERP modules.
Lockton also says most manufacturers run so many different systems that some integration between CRM and third-party applications is inevitable. Therefore, he argues, why not go with the CRM vendor that offers the best functionality in the form of predefined business processes.
"We used our experience in working with more than 3,500 customers to create these business processes," maintains Lockton. "Not only do they give companies a roadmap for improving current processes; they also eliminate a lot of the work that would come from having a systems integrator tell you how to connect your systems."
31 Manhattan Associates
Thinking long-term, and RFID
Supply chain execution software provider Manhattan Associates has been on a financial hot streak for 10 years now, but CEO Dick Haddrill would rather talk up his customers' strategic concerns rather than recount internal successes. "Companies are sourcing and selling globally, shipping farther distances, and product life cycles are shorter," says Haddrill. "It's increasingly apparent that today's stresses will not change anytime soon, and companies must adjust their operations for the long term."
Charge-back fees are a direct financial pressure felt by consumer goods suppliers. With the tough economy, retail giants are strictly enforcing charge-backs that penalize suppliers for shipping errors such as wrong items or quantities. According to Haddrill, 9 percent to 10 percent of deliveries shipped to retailers are eligible for charge-backs. "Our users are under a great deal of pressure to prevent errors," says Haddrill. "Plus, many retailers are trying to reduce their number of suppliers, and looking for reasons to do so."
To better prepare for possible retailer requirements, Manhattan has enhanced its applications with radio frequency identification (RFID) technology, which uses radio waves to identify and track items throughout the supply chain. A small chip and antenna, commonly called an RFID tag, is read by an RFID reader, and information about a tagged item is passed to a computer.
Using partnerships with a tag manufacturer, as well as Zebra Technologies and Symbol for printers and scanning equipment, Manhattan is developing middleware to connect RFID data with its own systems. Currently, one Manhattan user is conducting an RFID pilot, and two others are in negotiations for possible installations. "A retailer could tell its suppliers they must be RFID-compliant to do business with them," says Haddrill. "When that time comes, our users can say, 'We are,' and easily meet those demands."
48 Vastera
Guiding goods across the globe
Vastera began life in 1992 as a software vendor that assisted companies with the complex world of global trade. Vastera software guided manufacturers through logistics planning and customs regulations. The applications kept up with duty rates, regulations, and value-added tax.
But in recent years, as trade becomes even more complex with "smart ports" and 24-hour advanced notice requirements, manufacturers are increasingly seeking outsourced global trade services. The result, says Ty Bordner, a Vastera vice president, is that "While we started out as a pure software company ... we've gotten more into managed services. We can do it more efficiently than a manufacturer, since it's a non-core aspect of the manufacturer's operation."
Even with the services focus, Vastera still notched $12.5 million in software revenues last year. The technology underpins its ability to perform service—an area it's also fortified via acquisition. After having taken on portions of IBM and Ford logistics operations, the company spent 2002 picking up logistics technology companies in Canada, Mexico, and Brazil; and expanded its footprint across Europe. The company's next geographic target is China, says Bordner.
The company continues to report losses, but the $45.8-million loss for 2001 came down to $11.4 during 2002. The company's loss for the first quarter of 2003 was under $1 million on revenue exceeding $10 million. Ford continues to own roughly 20 percent of Vastera.
50 RedPrairie
Risk/reward model begets growth
Sure, most major vendors of supply chain execution software have expanded into areas like supply chain visibility. In this, RedPrairie, formerly known as McHugh Software, is similar to most of its competitors. Among the factors that do set RedPrairie apart is its risk/reward approach.
Beginning last summer, the company implemented its risk/reward business model, which offers users two payment options. One choice is to identify potential savings, and reach mutual agreement on a fixed price prior to implementation. Option B eliminates all upfront costs, but users commit to paying a percentage of savings produced from the system. The time frame for producing savings is decided by both parties, and many users choose to break up goals into specific milestones.
"We sell by looking at ROI [return-on-investment] and then offer a backup of the ROI with a risk-free program," says John Jazwiec, company results leader. "Using this method, we are better able to articulate where users stand regarding best practices in their specific verticals. We can show how the system provides value and what areas a company should concentrate on."
Pleased with the company's 22-percent growth last year, Jazwiec believes part of the company's success can be attributed to an emphasis on the services side of the market. "The supply chain market is maturing and it has no real product differentiation, and too many suppliers. The way to stand out is to do more than implement software. We build long-term relationships."
More important, says Jazwiec, is that users of supply chain execution systems want stable, prosperous technology providers. "There is a definite flight to quality in the supply chain execution space, as users take a hard look at vendors," says Jazwiec. "Companies want vendors to be around a long time, so they are taking a closer look at their profitability and scrutinizing numbers more intensely."
51 EXE Technologies
Comeback plan based on core strengths
Joe Cowan, who became president and CEO of supply chain execution software vendor EXE Technologies last November, plans to put EXE back on a growth path by refocusing on core strengths, including its considerable presence in the high-volume retail, 3PL, automotive, and high-tech verticals. "The knowledge that EXE has about these industries and the understanding that we have about the customers in these markets is what has allowed us to become a leader," Cowan says.
A related edge for EXE, Cowan contends, is ease of use. "The concept with EXE is to make products that are very focused, very simple, and very easy to use, which tends to lower the cost of ownership for our customers," he says.
EXE also has global reach, with about half of all installations in the U.S., 25 percent in Asia, and 25 percent in Europe. "Our customers are going global and need a software vendor that can work with their divisions around the world," says Cowan. "The supply chain really starts in Asia, because most companies are moving their manufacturing operations overseas, so a supply chain execution vendor must be able to do business starting in Asia and follow the supply chain all the way back to the U.S."
Reinvigorating EXE—which had its total revenues decline by about $28 million in 2002—will hinge on executing around these strengths. Says Cowan, "I was brought on to refocus the company on the things that we do best. I believe that focusing on our core industries, using that knowledge to create simpler software products—coupled with our strong global presence—will get EXE back on track, even during this poor software economy."
53 Descartes Systems Group
Logistics "by the drink"
Descartes Systems Group is unique to the supply chain execution space in that it sells its applications and trading partner connectivity as a service over a network. "About 70 percent of our revenue comes from the Global Logistics Services Network, which is charged for on a pay-as-you-use basis," says Art Mesher, chief logistics officer.
The network acts as a common platform that brings together shippers, carriers, freight forwarders, and other third parties, such as customs agencies. "This allows us to offer three fundamental things to our customers," says Mesher. "Some use our product to save money and do things more efficiently, some use it to provide value-added services, and some use it to try to restructure an industry or change a market by creating a network."
Descartes recently introduced its routing and scheduling application as a service, which previously only had been available through a traditional license model. "Now you can buy routing and scheduling 'by the drink,' or by the license," says Mesher.
Other recent releases include Descartes Automated Manifest Service, which allows companies to prepare and file manifests electronically with U.S. Customs. This offering debuted last December, and by spring 2003, 45 companies already had signed up for it, says Mesher.
While publicly held Descartes has struggled with large losses, it remains a believer in network-based offerings. "This fall we plan to announce something we call the Logistics Network Operating System," says Mesher. "This will open our system up and make it available to other application vendors to access our data. Companies like SAP will have the ability to have their applications consume data from our network."
61 Prophet 21
A network for manufacturers and distributors
Prophet 21 offers a Web-based trading network for manufacturers and durable goods distributors—Trading Partner Connect. The network helps customers with order fulfillment, inventory management, and purchasing.
Within the network, the company operates an electronic exchange — B2B Marketplace—that allows customers to manage partner relationships, Web-based storefronts, and catalog information. One of the marketplace's primary goals is to help distributors reduce electronic data interchange charges.
Prophet 21 continues to enhance its commerce capabilities. "One of our major improvements is that we've automated payables between manufacturers and distributors," says Doug Levin, Prophet 21's executive vice president. "It now comes in electronically and reconciles." He also notes the addition of electronic payment capabilities, which encourages on-time payment, and thus, discounts.
Another recent addition is virtual private network (VPN) capability. "The VPN is the most cost-effective way to communicate," says Levin, noting that it provides the security and protection of a dedicated leased line at a lower overall cost. Levin indicates customers can soon expect further developments in inventory and customer management. "We will be adding more functions that allow distributors to do one-to-one marketing," explains Levin.
Launched in 1967, Prophet 21 has 2,000 customers and 70,000 users conducting $35 billion in annual transaction volume. The company went private in November 2002 through an acquisition by Thoma Cressy Equity Partners and LLR Partners.
63 Optum
Fulfillment life-cycle management
"Our strategy has always been that our customers are the most important thing we have—more important than our intellectual property or our code," says Kevin Hart, chief operating officer of supply chain execution software vendor Optum. "And I think our relationships with our customers have paid off."
As evidence, Hart says, the company recently closed its fifth profitable quarter in a row, and increased earnings for the past year. "We've been able to do this because we execute on a customer focus, and have upgraded our product to provide what our customers really want for their businesses," he says.
To determine client needs, Hart says Optum developed a unique customer advisory board. About twice a year, customers volunteer to host a meeting at their own sites for Optum executives and a group of other clients. The customers use this time to discuss their requirements, and Optum employees dedicate time to development work. "We actually have a backlog of volunteers for these meetings and about 50 customer representatives usually attend each meeting," says Hart. "I think we have such a good turnout because it's really much more than a maintenance and support contract. It's development time for them."
Based on advisory board requests, Optum has continued to develop products that enable fulfillment life-cycle management. "By this term, we mean that our products will focus on taking information, making it more accessible, and managing it on behalf of the client through processes, monitoring, and analysis," says Hart. "This will enable us to actually drive revenue for customers."
67 Blue Martini
Guided selling for manufacturers
Blue Martini Software was born in the dot-com era when its founder developed a sales-transaction engine for Internet-based retailers. Today the company sells customer relationship management (CRM) software to businesses that see the Internet as one of many sales channels. Blue Martini also has created a set of CRM solutions specifically for manufacturers.
"Our approach to developing software is to focus on a company's pain points," says Rick Fleischman, director of industrial solutions marketing. "The biggest pain point in the manufacturing space is managing quotes and orders."
Fleischman says that requirement led Blue Martini to build solutions that do more than automate the tracking of sales leads or other "front-office" functions normally associated with CRM applications.
"You must have a handle on the knowledge that's needed for handling orders," says Fleischman. "That means you have to know who has this knowledge, how you can access it, and even more important, how to distribute it throughout the organization in an easy manner. We rely on intelligent engines as a way of capturing and disseminating that knowledge."
These engines enable what Fleischman calls "guided selling." This essentially is allowing customers to use tools like product configurators to select options for various products. "Guided selling is crucial for manufacturers," Fleischman says. "It simplifies convoluted sales processes—even those that span numerous sales channels such as a direct sales force, distributors, and customer self-service operations."
68 Catalyst International
Embeds best practices, touts integration edge
Catalyst International, a veteran of the supply chain execution software market, believes the deep functionality it has built up over 24 years and its ability to tie into other transactional systems are factors that set it apart.
"While most other companies have the basic functionality and then customize it for best practices for a particular operation, we have been able to use our experience to incorporate best practices right into the base functionality of our products," says David March, an executive vice president with the company. "This gives the user best practices with a minimal amount of effort and minimal customization. It's low-risk and hassle-free."
Catalyst also has been working closely with enterprise resources planning (ERP) vendors to help customers improve the systems they have in place. "Catalyst plugs best-of-breed components into the infrastructures our clients already have, which allows us to embrace ERP and supply chain solutions and make them work better, rather than trying to get clients to rip them out," says March.
With this thinking in mind, Catalyst International has struck a deal to acquire Catalyst Consulting, a services firm that is a certified implementer of enterprise software giant SAP's Logistics Execution System (LES). "Because we embrace ERP solutions and make them work better, it was only fitting that we acquire a certified implementer of SAP's supply chain execution suite," says March.
He hints that more acquisitions will be seen in the future. "We've been very public about the fact that the supply chain execution market is overpopulated, and that as a result, the product differentiation has narrowed significantly," says March. "And Catalyst, being one of the few public corporations in the space, is going to be one of the engines of consolidation of this market. We expect to be aggressive in the areas of acquisitions and mergers."
70 LIS
Global strength for execution vendor
Supply chain execution vendor LIS has witnessed plenty of change in its market, yet has managed to stay prosperous, achieving double-digit growth rate last year, as well as implementations at 51 customer sites. "We've been in this business for 18 years, and every year we've incurred not only sales growth, but we've also been profitable," says Bob Carver, a LIS vice president. "In an industry that's going through a little bit of flux right now and taken some downturns, we've maintained fairly steady growth and profitability."
In the U.S., LIS has a strong presence in manufacturing verticals including food, high-tech, and healthcare products. To further assist its healthcare customers, release 7.3 of LIS's warehouse management system offers added support for compliance with the Food & Drug Administration's 21 CFR Part 11 regulation.
Despite the presence in these verticals, Carver admits that U.S. sales have been flat for the U.K.-based vendor, but says that LIS has been able to find growth elsewhere. "Being a truly global company is what sets us apart," says Carver. "Many companies in this industry are strictly U.S.-based, and in the supply chain execution market many have attempted to reach out overseas and not succeeded. We're an overseas-based company with a U.S.-based operation, so our European capabilities are much stronger than our competition."
LIS also notched its first installations in the Middle East and South Africa last year. Says Carver. "We will continue with this emphasis outside of our core regions with a sustained emphasis on global accounts and global installations of our product for multinational corporations."
73 irista
End-to-end logistics for manufacturers
While many players in the supply chain execution system market focus on outbound finished goods distribution environments, irista says its solutions address logistics efficiency and accuracy across a manufacturing business network.
"We offer not only warehouse management technology, but also transportation management technology that handles both inbound and outbound logistics that work together for manufacturers," says Scott Rishel, a company vice president. "This means we have the capability to handle the end-to-end logistics cycle from getting raw materials from suppliers all the way to distributing finished goods to the end customers."
With irista's latest product release, says Rishel, "We spent a lot of time on material tracking control. This means we're bringing materials to the production line, verifying that they are the right materials, consuming those materials, and then following the process through to the completion of finished goods. That's very unique because we've added pure manufacturing capability to our system. It also means you're going to realize better efficiency and accuracy because you're using software that has been designed for a manufacturing environment versus a distribution environment."
Another differentiator for Irista is that its parent company—HK Systems—is a large manufacturer and integrator of material handling equipment. "If a client is looking for a turnkey system that includes warehouse management software and material handling systems, they can come to Irista and HK to get an integrated system that includes software, conveyance, and other material-handling technologies," says Rishel.
76 HighJump Software
Stresses adaptable execution solutions
The reason HighJump Software is succeeding in the crowded supply chain execution space, says CEO Chris Heim, involves more than offering the right set of features and functions. Heim credits much of HighJump's growth to the adaptability of its software.
"Our software is extremely adaptable, so it can be changed to fit a customer's unique business requirements without custom coding," says Heim. "Our customers' operations can change so quickly that they really need software that will change as their business does, without having to return to—and write checks to—the vendor every time they need to make a change."
HighJump's product lineup—which includes warehouse, transportation, yard, and supply chain event management—can be customized without changing source code, which simplifies upgrades. "Our average upgrade process takes about two days," says Heim. "When compared to our competitors, it's a big differentiator for us because other upgrades can take months."
Heim says HighJump's products are modular but integrated, and all share the same user interface, database, and methodologies for making changes. "It's almost like the Microsoft Office suite: everything works together, which gives you greater functionality and benefits," he says.
The product strategy seems to be working, because HighJump grew 30 percent during its fiscal year ended March 31st, including a 52-percent increase in license revenue. It also notched successful installations in South America, France, Netherlands, and China. "We did about 10 percent of our sales internationally last year," says Heim. "Prior to this we've had a smattering of international business, but this is the first time we've ever placed an emphasis on international installations and achieved such positive results."
83 Provia Software
Profit from successful implementations
In an enterprise software market beset by challenges, supply chain execution system supplier Provia Software enjoyed a strong 2002, starting with bottom-line profitability.
"In our 15-year history, last year was in the top five of overall profitability for our company," says Paul Crist, a company vice president. In addition, Provia continued to land major contracts, including Blockbuster Video and Applica, a manufacturer of the Black & Decker line of consumer products.
"Overall it was a good year for us, and I think one of the reasons we have had success this year, and in the past, is because we bring to the marketplace a history of consistent, successful implementations," says Crist. "And by that I mean we have the ability to take a good product suite and combine that with excellent tools, training, and experienced personnel to effectively implement the solutions for our clients and deliver on the key objectives of our products to provide the returns they are looking for."
To do this, Provia uses a methodology called knowledge transfer, which aims at rapidly imbuing clients with the internal skills needed to use and maintain Provia's applications. "We follow this philosophy because the only constant in today's logistics marketplace is change, and we don't think it's a good idea for our customers to be dependent on us to react to change," says Crist. "They should be empowered to handle it through training and the user-configurability of the product so they can react to change without having to come back to us every time they need to reconfigure the system to meet customer demand.
"Many other vendors' business models are dependent on professional services revenue," Crist continues. "One of the ways they do that is to create dependencies where customers have to come back for additional assistance to implement the solution. That's not our philosophy at Provia, and I think our success shows that our customers appreciate that."
85 Firepond
Unearth and eliminate hidden costs
Firepond long differentiated itself from other customer relationship management (CRM) vendors by focusing on the sales process, and that hasn't changed as the company honed its focus on manufacturers.
"Our primary focus is on product configuration technology sold into the manufacturing sector," says Klaus Besier, president, CEO, and chairman.
Product configuration allows salespeople to walk customers through a needs analysis process, assess how to best put together the product to meet those needs, and generate a price quote and sales contract.
"If you've got an inaccurate order, it takes longer to process, causes disgruntled customers, increases scrap, and slows investment turns. Those costs are hidden. There is no line item called 'cost of screwed up order.' So we've been working to bring down the cost of the configuration tools that solve those problems."
To that end, Firepond has made a significant investment in streamlining its SalesPerformer product line to reduce deployment cost and make it easier for manufacturers of complex products to turn leads into accurate orders, thereby reducing cost of sales.
"Today we offer customers a solution that is easier to implement, delivering faster return-on-investment, with reduced total cost of ownership," he says. "The solution is modular so you can implement components as you see a need for the business."
Besier says companies have poured money into enterprise and CRM, but have ignored sales and distribution. To get further savings, "they need to do product configuration properly."
91 ClearOrbit
Twist on supply chain execution
ClearOrbit is a player in the supply chain execution software market, but the company isn't offering manufacturers another back-end system. "Our biggest differentiator from other companies is that we leverage a company's enterprise resources planning [ERP] system rather than duplicating or replicating it," says Richard Sherman, chief marketing officer.
ClearOrbit's Gemini Series maintains a common data model with ERP and other systems, while integrating with bar-code technologies. "This means there's no separate database required, which allows our customers to automate the execution processes without replacing their ERP or having to put in a stand-alone best-of-breed solution," says Sherman.
Gemini matches up well with manufacturers' needs, Sherman contends. "If you look at a manufacturing plant, it has a shipping area with some finished goods inventory, but there is generally not a finished goods warehouse," says Sherman. "But manufacturers do have integrated material management requirements, and we meet those by adding automated material handling processes and technologies to the manufacturing applications without requiring our customers to put in a separate warehouse management system. In this manner, our products can automate necessary functions like receiving, put-away, inventory control, picking work-in-process materials, and tracking."
While ClearOrbit has long experience with data collection integration, its applications go well beyond these roots. Gemini handles "in the four walls execution," says Sherman, while the Endeavor Series suite targets both inbound and outbound supply chain process management. Says Sherman, "With Endeavor, we support business process management and collaborative supply chain management."
92 PipeChain
Tackles VMI and other collaborative processes
PipeChain's software suite helps automate collaborative business processes, including vendor managed inventory (VMI). Lately, says Anders Ever, a company vice president, PipeChain has upped its management-by-exception abilities.
Specifically, PipeChain AlertMessages lets users set up alerts. "The addition of AlertMessages has increased the automation of work procedures and improved the management-by-exception functionality," says Ever. The company also recently added EventManager to manage workflow and rules, and LoadPlanner, which helps customers manage transportation fill ratios.
In addition to VMI, PipeChain's suite offers collaborative demand management, flow production, and order management and tracking functions. In the coming months, PipeChain intends to add "what-if" analysis, and more order promising capabilities.
PipeChain is a Swedish vendor that set up its U.S. operations in 2000. Its customers span process and discrete verticals, including automotive, consumer packaged goods, food & beverage, semiconductor, and high-tech. Major customers include The Absolut Co., Flextronics, Volvo Powertrain, and a number of Ericsson divisions.
93 Enigma
Help for the "support chain"
Enigma offers software that helps OEMs address underlying "support chain" concerns such as ensuring that equipment can easily and cost-effectively be maintained in the field.
"The support chain is the business conducted after you sell a piece of equipment—maintenance. It starts the moment a product is sold, and continues through the item's entire life cycle," says Jonathan Yaron, Enigma's chairman and CEO. "And it covers everything from a dishwasher to the space shuttle."
Enigma's 3C Platform provides easy access to the product and inventory information technicians need to make support decisions. "Our target is the field engineer," Yaron says. "Our goal is to make it easier for him to do his job. At the end of the day, the engineer is more efficient, leading to more equipment up-time and longer product life."
Enigma has diversified from its roots in aerospace. Over the past year, the company has won a series of deals in the automotive industry—including Ford, Land Rover, and Volvo—as well as in telecommunications. Another growing target is the defense industry.
"We expect to grow about 20 percent this year," Yaron says. "Aerospace will be down to about 35 percent of the business as other verticals pick up. As the economy picks up, each of those verticals could be worth $20 million to $25 million to the company."
95 Tecsys
Looking for glory as "Mr. In-Between"
There's no glory for those who sit between the brand names—i.e., the brand-name manufacturer and the brand-name retailer. But moving goods from manufacturing into the distribution chain is no less important than the glamour of making and selling.
"It's easy to forget the sheer numbers of billions of products consumed every day," says a somewhat philosophical Peter Brereton, president and co-CEO of TECSYS. "Each and every instance has to be distributed."
Distribution is the TECSYS raison d'être. The company sells supply chain management software to companies in distribution-heavy markets—such as consumer products, pharmaceuticals, and high-tech—and in particular, targeting third-party logistics (3PLs) and distribution-centric organizations, including manufacturers' distribution operations.
Says Brereton, "It's an enterprise system that is focused on distribution. Some have called it ERP for distributors, but I don't like that 'ERP' moniker."
Connectivity and flexibility demands on a system for 3PLs are significant and growing. As such, it prompted TECSYS to entirely restructure its EliteSeries product family, which combines applications for distribution, warehouse, and transportation management with e-commerce and performance management software.
"It's a virtual rewrite of the entire product, which made the product entirely Web-centric. Every data source in the product can be accessed through Web services and XML," says Brereton.
According to Brereton, the response to the new product line "has been fantastic. We've already seen a significant uptake in our customer base and have enjoyed a higher new-order win rate."
98 Entigo Corp.
Web-based warranty chain management
For Entigo these days, helping manufacturers with customer-facing issues means the service side of the business. The vendor has its roots in channel and catalog management software, but in recent years, it's been stressing warranty management.
"Entigo developed its first warranty application in 2000," says Dave Pelton, a Entigo vice president. "Over the past three years, we've seen increased demand for warranty chain management solution from Global 1000 companies."
The company's Entigo Warranty solution uses Web-based content management and workflow tools to automate claims processes. Says Pelton, "Entigo Warranty uses a flexible rules engine that allows companies to automatically approve, deny, or reject claims, which significantly reduces associated labor costs. Some of our customers are moving from processing 20 percent of claims automatically, to processing 80 percent automatically."
Component suppliers may compensate OEMs for faulty components, so the solution, says Pelton, "also captures detailed data that drives successful supplier cost recovery. The detailed data capture also allows data monitoring and trend detection to accelerate problem identification and resolution."
Pelton says Entigo's biggest competitor is internal development by OEMs' information technology departments. But already, Entigo has drawn manufacturers including ArvinMeritor, Eaton, Volvo, and Carrier Corp. to its package, and believes that more Global 1000 companies in verticals such as automotive, aerospace, industrial equipment, semiconductor equipment, and medical devices can benefit from a Web-based suite for warranty management.
99 Access Commerce
Full configuration within advanced selling
Access Commerce is in the customer relationship management (CRM) space, but Kurt Haller, executive vice president and North America general manager, says there is a world of difference between "bloated" CRM suites offered to multiple industries, and Access Commerce's Cameleon advanced selling software. "We focus on solving an immediate business problem for manufacturers," says Haller. "We streamline key steps in the lead-to-order process by eliminating errors, reducing costs, and increasing throughput."
Actually, adds Haller, the "order" in build-to-order verticals including high-tech/electronics, industrial equipment, medical devices, transportation equipment, and furniture doesn't stop with a configured quote. "Sales configurators ... typically drop the ball in managing the hand-off from sales to fulfillment," he says. "This is the critical step in build-to-order."
Cameleon, Haller contends, features full product configuration in the sense that it not only automates the front-end tasks, but it also "performs the back-end engineering and manufacturing configuration that creates bills of material, routings, drawings, and other data needed to produce what has been sold."
The system, says Haller, also excels in another tough area: ease of model creation and administration. "We've made significant investments to become a leader in simplifying configuration model creation and maintenance," he says. "We've developed a collaborative model designer methodology that leads companies through the knowledge- and data-capture process, and we have built a model authoring tool that doesn't require programming skills."
100 Categoric Software
Independent event management & alerting
Categoric Software has two markets for its Xlerts event management and alerting system: other software vendors, and end-user companies, says Thorgeir Einarsson, chairman, CEO, and co-founder. Sales are split roughly evenly between the two, and, he adds, the end-user market remains important.
"There has been increased interest from end users for the last 12 months for an 'independent' event management development and deployment platform for integrating and monitoring business processes across applications, databases, and disparate computing environments," Einarsson says.
Within end-user buyers, there typically are two types of projects, according to Einarsson. One is in-house development by information technology departments looking to speed up a variety of business processes across systems. Another, he says, involves a "solution for removing latency out of targeted business processes, including performance measurement visibility integrated into existing portals, and adding mobile devices to support distinct supply chain initiatives such as CPFR [Collaborative Planning, Forecasting, and Replenishment]."
While Categoric works with users to measure improvements, Einarsson says there is no "one size fits all" return-on-investment (ROI) approach for event management. Says Einarsson, "What we can prove is that event management solutions have reduced latency in many instances, and therefore human and financial utilization is up, as is productivity ... but the exact ROI has to be calculated by each application."
This could be the end of forecast error
08/18/2009Both end and beginning
07/01/2002Enterprises and exchanges
07/01/2001
