Rapid Return - January 2004
This has been a frenetic year for supply chain execution (SCE) in the consumer goods industry, with many of the major product vendors landing deals with new customers and forging agreements with partners. Perhaps the most significant developments of the year were related to radio frequency identification (RFID) technology, which many consumer goods manufacturers could begin adopting over the next year following mandates by Wal-Mart.
The Impact of RFID
Although it's still uncertain what impact RFID will have on SCE efforts, "the bottom line is the SCE aspects of the supply chain will have to deal with RFID, including where [in the chain] companies place tags on palettes and cases," says Mike Dominy, senior analyst, at the Yankee Group.
"For consumer goods companies this could have a dramatic cost impact, anywhere from a few million dollars in investments to $15 million to $20 million if tags must be applied in the manufacturing process," Dominy continues.
Another major development, Dominy says, was the emergence of SAP AG as a major force in supply chain execution.
"Overall, it's been a good year for the SCE market in terms of product demand," says Dominy. "Companies are still trying to find ways to squeeze out costs, and they're looking for projects with an ROI of less than 12 months," he says. "SCE software applications can help reduce total costs."
2003 Key Highlights
RedPrairie Corp. had a busy year, signing key partnerships and announcing several customer wins. In August, it signed an agreement with Kurt Salmon Associates (KSA) -- a management consulting firm to the retail and consumer products industries -- for KSA to incorporate RedPrairie's labor productivity software into KSA's performance improvement program.
In October, RedPrairie and Sonata Software, a software services company in India, signed an agreement for Sonata to market and implement RedPrairie's DigitaLogistix SCE suite in India and elsewhere in Asia.
A month later RedPrairie and RFID technology provider Matrics Inc. announced an agreement in which RedPrairie will integrate and resell Matrics' RFID readers and tags with RedPrairie's RFID Accelerator middleware. RedPrairie also landed contracts for its SCE suite with customers including Bacou-Dalloz, a provider of personal protective equipment; and Broan-NuTone, a maker of residential ventilation products.
Customer Wins
Logility announced that Alberto-Culver Co., a manufacturer of personal care products, selected Logility's Voyager Solutions system for collaborative transportation planning and management across its U.S. supply chain network.
Other customer wins include Rockline Industries, a supplier of coffee filters; and Bell Sports, fitness products and cycling accessories maker.
Logility in September formed a business alliance with Plan4Demand, a consulting services firm specializing in supply chain management solutions. The alliance intends to provide implementation resources, customize best practices training and prioritize business process improvement for customers.
G-Log in August announced that Rohm and Haas Co., a manufacturer of specialty materials, selected G-Log's Global Command and Control Center software to support its strategic efforts to enhance efficiencies in its global logistics and transportation systems. Four months earlier, G-Log inked a deal with food and agricultural cooperative Land O'Lakes to use its software to manage inbound and outbound freight operations.
Bridging the Gap
BridgePoint Inc. in October announced that Mohawk Home, a supplier of flooring for commercial and residential applications, selected its iPlex product for supply chain visibility, alerting and exception management services.
SSA Global Technologies Inc. made several acquisitions during 2003. In June, it announced that it acquired Ironside Technologies, a provider of e-commerce applications for the manufacturing and distribution markets.
A month later SSA acquired Elevon Inc., a global provider of e-business and collaborative commerce software.
SAP in June added ISV partners to build and integrate new applications and services for its SAP Business One product. Among these is DemandStream, which makes solutions for lean manufacturing and supply chain execution.
Provia Spans the Globe
Provia Software in September signed a global reseller agreement with supply chain company Menlo Worldwide, in which Menlo will resell, implement and support Provia's ViaWare WMS software as part of its global service offering. Under the agreement, Menlo's global sales force will offer Provia's ViaWare WMS as part of its Menlo DirectTech portfolio of technology solutions.
Catalyst International Inc. in April signed a deal with Rayovac, one of the world's largest consumer battery and lighting device companies. Rayovac deployed the Catalyst SCE system at its brand new distribution center located in Dixon, Illinois.