Consolidation hits supply chain

16.05.2006
Vendor consolidation has reached the supply chain software market with retail specialist JDA Software Group Inc. announcing plans to acquire Manugistics Inc. for US$211 million.

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

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 [AG]," Malizis said.

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

Traditional ERP (enterprise resource planning) 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 A$20 to A$30 million (US$15.274 million) as part of the acquisition but Malizis believes the impact in Australia will be minimal.