Consolidation hits supply chain

Vendor consolidation has reached the supply chain software market with retail specialist JDA Software announcing plans to acquire Manugistics for $US211 million.

JDA will combine its retail expertise with Manugistics' strong presence in the consumer packaged goods market.

Manugistics customers in Australia include Foster's, Heinz and Telstra and the company's local managing director James Malizis said the combined entity is committed to maintaining product support and development.

Acknowledging local customers have multimillion-dollar investments to protect, Malizis said JDA is committed to investing in the Manugistics product suite. "By year's end, a product roadmap will be available; by bringing the two companies together we are in a much stronger position to take on the likes of SAP," Malizis said.

"Now we are a much bigger organization with broader domain expertise."

Traditional ERP vendors such as SAP are extending supply chain capabilities, but Malizis describes the company's offering as best of breed or leading edge.

Globally, JDA is planning cuts to the tune of $20 to $30 million as part of the acquisition but Malizis believes the impact in Australia will be minimal.

Locally, Manugistics has 15 staff while JDA has around 25.

Plans for the future include a hosted best of breed supply chain offering to be introduced to the local market in the next six to 12 months.

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