News from the supply chain front

Stamford, Conn.-based Gartner Group reports the supply chain management (SCM) applications market appears to have bottomed out and is looking to recover, based on vendors' reported financial performances for 2003. After a steep 20-percent decline in 2002 (compared to nearly 90-percent growth in 2000), 2003 saw only a 3-percent drop. Gartner's projected 6-percent growth for 2004 is welcome news to users and vendors alike.

Announcements so far this year from leading supply chain planning/supply chain execution vendors provide signs of promise for 2004:

• RedPrairie acquires LIS to enhance global leadership position (February 11, 2004). "Leading SCE solutions providers in the Americas and Europe merge to form global powerhouse focused on driving customer results worldwide."
• Manugistics announces fourth-quarter fiscal 2004 results.... Revenues post gains over prior year (March 31, 2004). "In the second half of the year, [Manugistics] grew software revenue, generated positive cash flows from operations, and reduced convertible debt balance by 30 percent."
• i2 announces $100-million equity investment by Q Investments (April 27, 2004). "...will increase i2's cash position to approximately $390 million..."
• SAP leverages deep industry experience with dedicated offering for logistics services providers (May 12, 2004). "...to enable logistics service providers to collaborate effectively with customers and partners."
• ARC Advisory Group reaffirms Manhattan Associates as No. 1 WMS supplier (May 18, 2004). "The company remains at the top of the North American list of providers coming in at number one for the third consecutive year."
• Retail-centric vendors viaLink and Prescient say they'll merge in September to become Prescient Applied Intelligence (May 26, 2004). Prescient's supply chain software extends down to point-of-sale (POS), while viaLink's niche is Internet-based trading for the retail supply chain. Prescient also is partnering with business analytics supplier Silvon Software to use Silvon's platform and data repository to analyze, access, and store POS and other type data collected by retailers.
• Chicago tech consulting company The Revere Group will offer its process and consumer packaged goods clients supply chain planning and execution (SCE) software from Adexa (June 1, 2004). John Caltagirone, Revere's VP, national supply chain practice, says the two companies "share the philosophy that improving customer results is more than just a technology challenge...it's also cultural."
• Optum makes its second acquisition this year, buying SCE vendor WorldChain, which specializes in network transactions management, real-time visibility, and exception resolution (May 17, 2004). In the first quarter, Optum purchased SCE vendor V3 Systems in an all-stock transaction.
• Transportation management vendor Kewill Solutions North America is expanding its year-old relationship with DHL to deliver shipping management solutions for DHL's domestic and international services (May 26, 2004). Kewill will provide additional compliance modules to integrate Airborne services.