“Our research found that organizations are striving towards more accurate and comprehensive information on which to base their important business decisions. The research shows businesses are ready to transform into information driven organizations in 2007 and beyond through advanced use of technology.” said Mark Smith, CEO and EVP of Research at Ventana Research.

Among the key research findings, Ventana Research found:
· Information management is just beginning to mature. Nearly two-thirds of organizations (66%) are still in the early stages of information management maturity, with the large majority of organizations built on entry-level technologies such as data warehousing and business intelligence (BI).
· Data governance is not widespread but is rated a high priority. More than half of respondents reported that their organizations do not publish a formal data governance policy but those that do tend to be large companies.
· Broad diversification of Information Management is underway. While our research found a heavy existing focus on BI, data warehousing, data quality and data integration, there is a significant diversification underway with new projects in progress or planned in enterprise master data management, enterprise search, information security, enterprise information integration, and data governance.
· Customer information is the most important but followed by financial then product information assets. Customer information holds the highest priority among the information assets of companies, according to survey respondents. Over 50 percent of organizations ranked
customer information first followed by financial information with 36 percent.

Ventana Research will expand on the key findings of the research study Information Management Actions, Intentions, Perceptions and Trends in Information at a live interactive webinar on Tuesday, December 5 at 9:00am Pacific.

More information on the webinar and the study can be found at www.ventanaresearch.com.

IDC’s top ten predictions for Infrastructure Software are:

1. The next wave in virtualization emerges, which IDC calls Virtualization 2.0. Users will focus on continuity, disaster recovery, and high availability.

2. Software appliances will become a household word in 2007. The convergence of virtual machine technology and a new initiative by several tool vendors is giving birth to this new form of software packaging.

3. The use of Linux paravirtualization will be mostly sizzle – not steak. Few users are going to substitute their current kernel with a paravirtualized kernel.

4. Management of virtual infrastructure takes center stage at large enterprises, extending adoption of virtualization across test, development, and production.

5. Virtualization and security will become stronger focal points for ITIL/ITSM vendors, who will do more to add support for virtualization and managing virtual environments to their service management offerings.

6. Major system management vendors will accelerate “productization” of ITIL best practices by incorporating functional software components with automated workflows that implement service delivery and service support processes.

7. Leading system management vendors will start putting a vertical focus to their ITIL marketing and product developments. These vertical segments will include Financial Services, Health Care, and Manufacturing.

8. There will be “growth separation” between software vendors that have made major acquisitions. Vendors must develop and execute sales and marketing strategies for combined entities that differentiate and clarify product offerings.

9. Microsoft’s client operating system anti-piracy efforts will backfire. Microsoft’s anti-piracy campaign will drive customers toward Linux.

10. Our expectations remain consistent that Windows Vista in 2007 will not uplift the operating system or PC market spend dramatically, but we are predicting a meaningful shift of adoption favoring premium Windows Vista SKUs.

More information about IDC’s Predictions for 2007 is available at www.idc.com.

“Vendors and organizations alike must recognize that MEA’s are not just about mobilizing a particular application, but rather delivering a set of composite applications based on the mobile workers business processes,” said Stephen Drake, program director of IDC’s Mobile Enterprise research. “Recognizing this, the underlying platform infrastructure plays a critical role in the delivery of such MEA’s. Vendors must continue to enhance their platform or otherwise look to support other existing platforms. Organizations should seek out suppliers that offer a robust underlying infrastructure to support the applications and provide enterprise-grade scalability for future expansion.”

“The worldwide growth of cellular networks, the proliferation of handheld devices, and a general level of ‘connection’ in individuals’ personal lives are quickly finding their way into the enterprise,” said Mary Wardley, vice president of IDC’s CRM applications research. “The current trend in enterprise applications is to ‘mobilize’ the application by giving employees access to salient portions of the application’s content while working in an ‘always available’ mode with various levels of connectivity.”

IDC’s study identified several factors that are driving and impacting this emerging market:
· Varying requirements for application functionality and data based on employee role and time criticality;
· Ability for carriers, device manufacturers, ISVs, and systems integrators to provide packaged solutions to end-user organizations;
· Sophistication of organizations as it relates to mobility, and;
· Horizontal deployments across organizations that drive collaborative, customer relationship management (CRM) applications.

More information and a copy of the study is available at idc.com

Commissioning Tags – during picking, the RedPrairie warehouse management solution, DLx® Warehouse, will commission the RFID tags that are required for each item on the order. DLx Warehouse will generate the EPC numbers for each case and pallet in the correct format and will relate them to a bar-coded license plate number, if necessary. These RFID-enabled labels will be applied to the appropriate cartons on the pallet. Similarly, an RFID-enabled pallet label will be generated.

Tag Aggregation – RedPrairie solutions aggregate case-level tag information for each case on a pallet and associate it with the pallet-level tag. This helps to reduce the amount of data that needs to be read at the reader portals. By reading the pallet tag and a definable number of case tags, the user can get a positive confirmation when moving pallets in the warehouse. This aggregation of tag list data is also passed in standard EPCIS format to the database that is shared with the retailer for data analysis. This analysis capability benefits both Unilever and the retailers.

Shipping Verification – At shipping, DLx Warehouse will physically read the tags that move through the reader portal at the shipping dock. The GLN (Global Location Number) will be assigned to the pallet depicting the pallet’s site location. This is the final step in capturing the tag list data and ensuring that the order was identified correctly.

“By replacing manually intensive data exchange tasks with automated processes, more time is available for analysis and value creation,” said Simon Ellis, Supply Chain Director at Unilever. “As RFID begins to proliferate, EPCIS will serve as the foundation for manufacturers like Unilever to gain valuable insight, predict needs and problems before they occur, and improve our business operations and responsiveness to each of our partners within the supply chain.”

Comments Tom Kozenski, RedPrairie Vice President, “Manufacturers and Retailers can share vast amounts of item data by accurately tracking RIFD tagged products. RedPrairie’s RFID capabilities help Unilever sift through the raw data and analyze store level promotional success within their EPCIS business analytics.”

Source: Red Prarie

Oracle Production Scheduling helps manufacturers to optimize process, semiconductor and discrete manufacturing shop floor operations through out-of-the-box integration with Oracle Discrete Manufacturing, Oracle Process Manufacturing, and Oracle Shop Floor Management. Customers can create highly detailed shop floor schedules that automatically detect floating bottlenecks, simulate corrective actions and measure shop floor performance improvements. This gives companies the ability to pre-empt supply chain disruptions and maximize shop-floor efficiency and throughput while minimizing cost.

Oracle Production Scheduling and Oracle Strategic Network Optimization can be leveraged as part of the Oracle E-Business Suite or as a stand-alone product.

Source: Oracle 27-NOV-2006

The new organization will provide integrated real-time information solutions and services for securing and managing global supply chains. Vic Verma, previous chief executive officer of Savi Technology, acquired by Lockheed Martin in June, will lead the new group and serve as chief executive officer of Savi Networks. Verma highlighted that the newly formed Savi Group will leverage its expertise to address the development and delivery of integrated ITV, Cargo Security and Mobile Asset Management solutions for the U.S. Department of Homeland Security, U.S. Department of Defense (including the U.S. Transportation Command and the Defense Logistics Agency), as well as other government agencies, port and terminal operators, and commercial customers.

“We will offer customers complete, integrated solutions, including powerful analysis tools that will enhance their situational awareness, security, and decision making in tracking and managing shipments every step along the way as they move through global supply chains from point of origin to destination,” Verma said. “To meet these significant challenges for our customers, Savi Group is being ‘turbocharged’ with Lockheed Martin resources, technical expertise and seasoned leadership in managing large complex systems integration projects.”

An important charter of the Savi Group will be to leverage the Savi Networks joint venture between Savi Technology and Hutchison Port Holdings, the world’s largest port operator. Savi Networks provides information services based on wireless data transmissions on the location, security and condition of cargo shipments as they are transported end-to-end throughout the global supply chain.

The Group will also support corporate initiatives for Secure Freight and Logistics. “We are actively participating in Lockheed Martin-wide efforts to offer the best integrated solutions to address our customers’ significant and complex asset management and security challenges,” Verma said.

Years of surveying and conversations with readers have shown that busy executives turn to an industry magazine like Supply & Demand Chain Executive for essentially two reasons: to learn how to solve problems that they know they have, and to learn about solutions for problems they didn’t even know they had. The mission of this magazine, then, is to provide targeted information to help corporate executives and other supply and demand chain management professionals as they enable their supply chains for competitive advantage.

As part of this mission, each year the magazine uses its Supply & Demand Chain Executive 100 feature to make its readers aware of those enablers that are leading the way in providing cutting-edge solutions and services to help enterprises address pain points in their supply chains through the application of new technologies and new processes.

This year the magazine focused the criteria for its “100″ feature on innovation. Based on the submissions for the “100″ from end users and technology companies themselves, our judging committee looked for solutions across a variety of industries, addressing the needs of companies of varying sizes, and assisting in the transformation of a diverse mix of the functions that make up the supply chain. The result is a comprehensive listing of leading providers of supply chain services and technologies who are at the forefront of innovation.

The solution providers that follow are listed in alphabetical order, and this article provides a brief description of why each enabler was included in this year’s “100″ listing. We suggest scanning through the article and noting those solution providers that enable those segments of the supply chain (Sourcing, Logistics, etc.) that are current priorities at your enterprise, as well as consulting the additional online resources available at SDCExec.com — including the Interactive Global Supply & Demand Chain Map, the Global Enabled Supply & Demand Chain Directory and our Best Practices Forum — in order to assemble a list of appropriate solution providers who can assist you. In this way, the “100″ listing can provide a vital first step on your supply chain enablement journey. Bon voyage!

Common abbreviations: PLM — Product Lifecycle Management; CRM — Customer Relationship Management; ERP — Enterprise Resource Planning.

4flow AG (Berlin, Germany; Enables: Sourcing, Fulfillment/Logistics, Decision Support/Consulting). First integrated, standard software for supply chain design. Web-based planning engine allows users in different countries to work collaboratively on planning projects.

Aankhen Inc. (San Jose, Calif.; Enables: Order/Demand Management; Procurement; Sourcing; Decision Support/Consulting; Supply Chain Integration & Infrastructure/ERP; Payment; Fulfillment/Logistics; PLM). Solution automates the in-context computation of “should be cost,” allowing enterprises to manage what should be the spend and reducing financial leakage and uncertainty.

ACQUIREX (Long Beach, Calif.; Enables: Procurement; Payment). Web service integration technology allows customers to integrate electronic purchasing to existing technology infrastructure and MRP/ERP solutions; smaller companies gain benefits of e-procurement without the upfront professional service fees.

Adonix (Pittsburgh, Pa.; Enables: Order/Demand Management, Fulfillment/Logistics, CRM, Supply Chain Integration & Infrastructure/ERP). Revamped X3 app enables companies to extend ERP information infrastructure to accommodate key business partners as if they were internal users.

ADR North America LLC (Ann Arbor, Mich.; Enables: Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment, PLM, Procurement, Fulfillment/Logistics, Sourcing, Order/Demand Management). Creating practical, sustainable solutions that clients use to achieve cost savings and competitive advantage through their purchasing and supply chain operations.

Agistix (Redwood City, Calif.; Enables: Procurement, Fulfillment/Logistics). First carrier-neutral heavy freight shipping solution to automate freight shipment processing and provide visibility into global freight shipments.

AIM Computer Solutions Inc. (Fraser, Mich.; Enables: Procurement, Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, CRM, PLM, Fulfillment/Logistics). First to integrate billing, shipping, ASN transmission and release accounting with AIAG labels.

Arena Solutions (Foster City, Calif.; Enables: PLM). First to bring the benefits of on-demand – faster deployment and more cost-effective solutions – to PLM market. Customer Strida Bicycles implemented the Arena solution in two days and doubled its business within one year.

ARGO Tracker (Tucson, Ariz.; Enables: Fulfillment/Logistics). Combining GPS and wireless communication technologies with add-on sensor capabilities to enable real-time asset tracking and visibility of goods in transit throughout the supply chain, resulting in reduced costs due to damage, vandalism and spoilage.

Ariba (Sunnyvale, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Fulfillment/Logistics, Payment, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Leader in solutions transforming procurement. Provides technology, services and expertise on a single, integrated platform.

Avendra LLC (Rockville, Md.; Enables: Order/Demand Management, Procurement, Sourcing, Decision Support/Consulting). Formed to deliver leveraged procurement to the hospitality industry, determining specifications and ordering economically.

Avnet Logistics (Phoenix, Ariz.; Enables: Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Order/Demand Management, Fulfillment/Logistics). Provides specialized supply chain and logistics services in the global electronic components industry.

Axway (Paris, France, and Scottsdale, Ariz.; Enables: Order/Demand Management, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP). Partnered with McKesson Corp. to develop an electronic pedigree solution allowing customers to meet regulatory mandates.

Baxter Planning Systems (Austin, Texas; Enables: Order/Demand Management, Procurement, Fulfillment/Logistics, PLM, Decision Support/Consulting). Integrated inventory planning software collects data from various consumption points and makes strategic recommendations, freeing users from manual data and transaction entry and providing visibility.

BigMachines, Inc. (Deerfield, Ill.; Enables: Sourcing, CRM). Leader in transforming the demand chain by enabling manufacturers to leverage on-demand Web technology to automate their entire customer facing processes.

Business Objects (San Jose, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Decision Support). Business intelligence solutions provide built-in functionality particular to supply chain processes such as procurement, logistics or manufacturing, streamlining information flow across the organization and the supply chain.

CGI Group Inc. (Montreal, Canada; Enables: Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment). Solutions designed to improve the procure-to-pay process. Have been used for statewide spend management in Delaware and Oregon, curbing off-contract purchasing and ensuring correct pricing for on-contract purchases.

Chainalytics (Atlanta, Ga.; Enables: Decision Support/Consulting, Fulfillment/Logistics). Pioneered a statistical model-based benchmark of transportation rates and the impact of operational policies on those rates.

Choice Logistics (New York, NY; Enables: Sourcing, Order/Demand Management, Fulfillment/Logistics, Procurement, PLM). Helps such companies as EMC, HDS and Avaya manage their inventory assets, facilitating on-time operations and improved performance.

Click Commerce (Chicago, Ill.; Enables: Order/Demand Management, Sourcing, Procurement, Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, PLM, CRM). Among the first to identify benefits of offering software-as-a-service in the supply chain management space. Uses a service-oriented architecture to link return forecasting and planning solutions with dynamic decision-making capabilities.

CombineNet (Pittsburgh, Pa.; Enables: Sourcing, Procurement, Decision Support/Consulting). Optimization technology enables “Expressive Commerce”: buyers provide open-ended requests for proposals online; suppliers respond with pricing, alternate items, contract and payment terms, bundled bids and conditional offers based on factors like market share/volume.

Comergent Technologies (Redwood City, Calif.; Enables: Order/Demand Management, CRM). eBusiness System provides support for inbound channel and addresses flexibility in the presentation of information across various user roles; offers an industry model for order capture processes, order routing, tracking and fulfillment.

Corporate United (Cleveland, Ohio; Enables: Sourcing, Procurement, Fulfillment/Logistics). This group buying organization requires all members to participate in commodity committees to hammer out effective national contracts that save millions of dollars for participants.

Cube Route Inc. (Toronto, Ontario, Canada; Enables: Fulfillment/Logistics). On-demand logistics management solutions for last-mile logistics — ideal for companies that want to improve service and achieve real-time visibility into delivery operations.

D.W. Morgan Co. (Pleasanton, Calif.; Enables: Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP). Blends logistics and supply chain solutions to free customers to focus on strategic goals. Works with clients to position their supply chains globally and competitively.

Demand Management Inc. (St. Louis, Mo.; Enables: Decision Support/Consulting, Procurement, Sourcing, Order/Demand Management). DS Collaborate creates a synchronized collaboration network for planning complex multiple promotions. Service Level Optimizer offers alternative way to determine safety stocks by measuring demand, not forecast error.

DSSI LLC (Southfield, Mich.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Payment). Leader in purchasing business process outsourcing (BPO) space, developing a Web-based e-procurement infrastructure that links the client, DSSI and suppliers together for integrated procurement.

E2open (Redwood City, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, PLM, CRM, Payment). On-demand software to address critical supply chain processes such as inventory management, forecast collaboration, order management.

EC Sourcing Group Inc. (Morristown, N.J.; Enables: Sourcing). First enabler to have eight different question formats within its request for information (RFI) module, and also the first provider to have request for proposal (RFP) variable labels technology, allowing all spend categories to be sourced within its e-sourcing software.

Edge Dynamics (Redwood City, Calif.; Enables: Order/Demand Management). Pioneer in channel commerce management solutions for the life sciences industry, allowing manufacturers to more effectively manage and enforce inventory management agreements (IMAs) and ensure inventory availability at the right place and time to prevent stockouts.

Emptoris (Burlington, Mass.; Enables: Procurement, Sourcing, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, CRM). First vendor to offer a single suite and support across the entire supply management process. First turnkey solution integrating source-to-contract processes to SAP’s Materials Management Procurement solution.

Enigma Inc. (Burlington, Mass.; Enables: Supply Chain Integration & Infrastructure/ERP). 3C Platform is the first fully integrated enterprise support chain management solution that has the ability to seamlessly link OEMs, operators and maintenance, repair and overhaul organizations (MROs), and high-tech industries through the Web, offline media (CD-ROM/DVD) and wireless.

Enporion Inc. (Tampa, Fla.; Enables: Order/Demand Management, Procurement, Sourcing, CRM, Payment, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Supply chain management technology tools and services for electric and gas energy companies. Enhancing its customers’ competitive advantage in the marketplace and driving significant savings throughout their supply chains, winning a highly enthusiastic client base.

Epicor Software Corp. (Irvine, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Sourcing, Procurement, Payment, CRM, PLM, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Portal solution is satisfying need for collaboration among consumers, suppliers, partners and employees, while delivering better management of distributed information.

Eqos (Burlington, Mass.; Enables: Sourcing). Offers companies and users working on complex sourcing projects a Web-based collaboration platform and “rapid application development” (RAD) environment that is configurable and flexible to change as processes change and as business grows.

FORTE (Mason, Ohio; Enables: Decision Support/Consulting). Distribution consultant and system integrator offering single-source design/build methodology. Software has developed into a Distribution Intelligence System that organizes, accesses and manipulates distribution performance information for current and future-state performance analysis.

Global eProcure (Clark, NJ; Enablex: Sourcing, Procurement). Pioneered the bid optimization feature in the reverse auction tool, allowing clients to view different savings scenarios before making their final award decision. Helping lead “insourcing” trend, enabling clients to supplement existing procurement resources with external personnel and resources to match procurement needs over time.

GXS (Gaithersburg, Md.; Enables: Order/Demand Management, Fulfillment/Logistics, PLM, Supply Chain Integration & Infrastructure/ERP, Payment). Providing low-cost, easy-to-use solutions that bring B2B e-commerce to small and medium-sized businesses (SMBs).

Hand Held Products Inc. (Skaneateles Falls, NY; Enables: Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Payment, CRM). Offers data collection technology capable of reading any bar code, including damaged and poorly printed labels, plus capture digital images and signatures — all with one solution.

Hewlett-Packard (Palo Alto, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics). Currently has a customer-driven supply chain model consisting of just five supply chains, each providing unique capabilities to meet different customer needs. This “portfolio of supply chains” strategy serves as a model for other companies looking to streamline the supply chain.

HighJump Software, a 3M Co. (Eden Prairie, Minn.; Enables: Fulfillment/Logistics). With a belief that no two supply chains are alike, HighJump develops and provides configurable supply chain execution solutions. Ensures all applications are integrated to support the real-time flow of information between suppliers, manufacturers, distributors and transporters.

Iasta.com Inc. (Carmel, Ind.; Enables: Sourcing, Procurement, Decision Support/Consulting). Iasta brings what it calls “Fortune 500″ sourcing technology to any size company at affordable prices. Building on self-service decision optimization tools.

IBX (Stockholm, Sweden; Enables: Order/Demand Management, Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment, Fulfillment/Logistics). In addition to its “green-yellow-red” methodology of designating suppliers, IBX focuses on making customers self-sufficient as soon as possible.

ILOG (Mountain View, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). CPLEX and PowerOps Suite integrate manufacturing’s planning and scheduling functions, synchronizing planning departments and the plant floor.

I-many Inc. (Edison, NJ; Enables: Decision Support/Consulting, Procurement, Sourcing). Contract management solutions employ a centralized repository of contracts with terms and conditions that is accessible to all supply chain participants. Visibility and control of contractual commitments help ensure regulatory, obligation and transaction compliance.

Indus International Inc. (Atlanta, Ga.; Enables: Sourcing, Procurement, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, CRM, Payment). Drove evolution from computerized maintenance management systems (CMMS) to enterprise asset management (EAM) solutions, expanding asset management to suppliers, service personnel and other outside partners.

Inovis (Alpharetta, Ga.; Enables: Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP). Business activity monitoring technologies enable companies to optimize collaboration with their worldwide trading communities, gain control and visibility of B2B transactions.

INSIGHT Inc. (Manassas, Va.; Enables: Order/Demand Management, Sourcing, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). First software for strategic supply chain design with a built-in set of options that uncover vulnerabilities and suggest designs and provide the relative costs of various strategies.

Integrated Warehousing Solutions (Downers Grove, Ill.; Enables: Fulfillment/Logistics). Encouraging companies to continue through the last mile of supply chain operations by advancing best practices and connecting production to the customer through the warehouse, creating demand-driven operations.

Intuit Inc. (Mountain View, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Payment). Uses customer data to develop business solutions that address specific industry needs. QuickBooks Enterprise aimed at growing businesses within the manufacturing industry seeking a new choice for production automation.

IQNavigator (Denver, Colo.; Enables: Procurement). Offers a configurable platform, giving users the versatility to handle the unique needs of various purchased services categories. As a software-as-a-service solution, IQNavigator can respond to individual user requests for changes or additions to the platform and then make those available to all customers without charge.

JPMorgan Chase (Dulles, Va.; Enables: Fulfillment/Logistics). With the acquisition of Vastera, JPMorgan Chase has become the first financial institution to sell solutions that simultaneously address both physical and financial events on one supply chain.

Ketera Technologies Inc. (Santa Clara, Calif.; Enables: Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP). Leader in the on-demand movement, offering spend management applications and promoting software-as-a-service trend in its offerings.

Kewill (Marlborough, Mass.; Enables: Fulfillment/Logistics). Innovator in transportation management, international trade logistics and visibility solutions for global trading communities. First to deliver the NCAP module in the U.S. to importers and customs brokers, allowing them to participate in the C-PAT security measures.

Kinaxis Inc. (Ottawa, Ontario, Canada; Enables: Order/Demand Management, Fulfillment/Logistics, PLM, Decision Support/Consulting). Leading market niche for response management, giving users tools to meet the challenges of unplanned and unexpected demand changes. On-demand service simplifies adoption.

LeanLogistics (Holland, Mich.; Enables: Supply Chain Integration & Infrastructure/ERP, CRM, Payment, Decision Support/Consulting, Fulfillment/Logistics, Procurement, Sourcing). Among first to offer a transportation management system solution in an on-demand environment. Its solution, combined with a long-term program of continuous improvement, offers a holistic strategy for reducing freight bill and transportation operations costs.

Logility Inc. (Atlanta, Ga.; Enables: PLM, Fulfillment/Logistics, Sourcing, Order/Demand Management). Built performance management capabilities into its solutions that allow companies to manage supply chain processes on an exception basis.

Management Dynamics Inc. (East Rutherford, NJ; Enables: Procurement, Fulfillment/Logistics). Synchronizes the flow of information among trading partners, manages trade regulatory compliance, minimizes border delays, streamlines logistics processes and reduces transportation costs throughout the entire supply chain, reducing risks and costs associated with global trade.

MCA Solutions (Philadelphia, Pa.; Enables: Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Fulfillment/Logistics, Order/Demand Management). Software allows planners to consider multiple what-if scenarios to evaluate the business impact of specified changes in the service supply network, helping transform the service supply chain into a driver of competitive advantage.

Model N (South San Francisco, Calif.; Enables: Decision Support/Consulting, CRM, Order/Demand Management). Integrates the key pricing and revenue relationships that link suppliers, channels and end customers, providing visibility to customer and contract commitments. Solutions help mitigate revenue exposure and regulatory compliance risk while enabling competitiveness.

Nextance Inc. (Redwood City, Calif.; Enables: Procurement). Contract performance management technology provider Nextance is the only industry player with fully XML-based solutions. Targets smaller companies’ supply chains with its Contract Insight with QuickStart Deployment.

Optiant (Burlington, Mass.; Enables: Supply Chain Integration & Infrastructure/ERP). Solutions allow customers to create models that show real-world uncertainty, helping them create dynamic supply chains that can respond and adjust.

Plexus Systems LLC (Auburn Hills, Mich.; Enables: Decision Support/Consulting, CRM, Payment, Supply Chain Integration & Infrastructure/ERP, Order/Demand Management, Fulfillment/Logistics, Procurement). Manufacturing performance system that integrates and streamlines the manufacturing process.

PowerTrack (Minneapolis, Minn.; Enables: Supply Chain Integration & Infrastructure/ERP, Payment, CRM, Decision Support/Consulting). Web-based electronic payment network creates links between physical supply chain events and back-end financial processes.

PrimeRevenue Inc. (Atlanta, Ga.; Enables: Procurement, Decision Support/Consulting, Payment). Supply chain finance solution applies supply chain management principles from product and information flows to financial flows and allows real-time monitoring and tracking of accounts payables transactions and cash flows.

Procuri (Atlanta, Ga.; Enables: Sourcing, Procurement, Decision Support/Consulting). Helped pioneer the on-demand delivery model for supply management and offers one of the industry’s most comprehensive solutions for managing supply management processes.

Prorizon Corp. (Kennesaw, Ga.; Enables: Procurement). Pioneered the Procurement Service Provider, or Managed Procurement Services, trend. Working to create one process for managing client order fulfillment by providing business process optimization consisting of middleware and resources to manage global daily transactional processes.

PurchasingNet Inc. (Redbank, NJ; Enables: Procurement, Sourcing, Payment). Credited with the first PC-, LAN- and Web-based purchasing systems, delivering first solution in 1983. Latest generation procure-to-pay solution is recognized as a leading solution and a value-conscious choice in the marketplace.

QAD (Summerland, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Payment, PLM, CRM). Envisions the future of manufacturing as a perfect lean market where the right information in the right place at the right time enables the supply chain to respond seamlessly to change.

Quadrem (Amsterdam, The Netherlands; Enables: Procurement, Sourcing, Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Payment, Decision Support/Consulting). Delivering value to buyers and suppliers by marrying procure-to-pay functionality with new value drivers that speed the payment process, deliver payment visibility and improve working capital management.

Real Time Freight Services LLC (Chicago, Ill.; Enables: Procurement, Fulfillment/Logistics, Sourcing, Supply Chain Integration & Infrastructure/ERP). Web-based solution that allows carriers and shippers to exchange information both within and across companies in real time.

Remstar (Westbrook, Maine; Enables: Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Fulfillment/Logistics). Solutions to split case picking applications have decreased London Drugs’ picking labor by 50 percent while keeping efficiency at 100 percent.

Sage Software Inc. (Irvine, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Supply Chain Integration & Infrastructure/ERP, CRM, Decision Support/Consulting). Innovative services designed to meet specific accounting and business management needs in selected industries.

SAS (Cary, NC; Enables: Sourcing, Order/Demand Management, Procurement, Decision Support/Consulting, CRM, Supply Chain Integration & Infrastructure/ERP). Helping customers see their supply chain as a strategic business issue. Remodeled its supply chain software to incorporate a modular SRM solution that allows companies to customize the way they manage supplier relationships.

SeeControl Inc. (San Mateo, Calif.; Enables: Order/Demand Management, PLM, Fulfillment/Logistics). Providing on-demand visibility and control over inventories of parts, maintenance supplies and consumables around the world.

Selectica Inc. (San Jose, Calif.; Enables: Procurement). Recognized leader in sales configuration technology. Plans to advance supply chain transformation by creating a more unified contracts management environment for buy- and sell-side users.

Servigistics (Atlanta, Ga.; Enables: Fulfillment/Logistics, Order/Demand Management). Helping advance supply chain transformation with its service parts management solution, enabling companies to achieve their revenue, profitability and customer service level goals. Solution includes the optimization of service parts prices.

Silvon Software Inc. (Westmont, Ill.; Enables: Decision Support/Consulting). Enterprise performance management (EPM) applications enable users to continually assess customer demand and the drivers behind it and plan, monitor and manage performance.

SLIM Technologies (Boston, Mass.; Enables: Decision Support/Consulting). Innovative solution approach that used Systems Dynamics Modeling together with Mixed-Integer Programming to allow inventory deployment decisions to be embedded in network optimization models.

Smart Software Inc. (Belmont, Mass.; Enables: Order/Demand Management). Invented a unique method to forecast hard-to-forecast items with “intermittent” demand.

SmartOps (Pittsburgh, Pa.; Enables: Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Order/Demand Management). Technology lets users employ systematic, scientific approaches to manage and account for the inherent uncertainty of supply chains in planning and execution.

Source One Management Services LLC (Willow Grove, Pa.; Enables: Sourcing, Procurement, Fulfillment/Logistics). Online procurement tool has a dashboard that can be used by buyers to manage multiple requests for proposals and view history of all RFPs and bids placed, especially important for Sarbanes-Oxley compliance.

SPS Commerce (Minneapolis, Minn.; Enables: Supply Chain Integration & Infrastructure/ERP). Offers EDI as software-as-a-service (SaaS) with low cost of ownership, enabling small and midsize suppliers to comply with retailers’ EDI requirements.

Staples Contract Division (Framingham, Mass.; Enables: Procurement). e-Procurement innovator that has helped its customers understand and achieve lowest total delivered cost.

Stellent Inc. (Eden Prairie, Minn.; Enables: PLM, Payment). Content management solutions help manufacturers streamline core business processes that tie into the supply chain. Customers now collaborate on engineering specifications with international partners via secure extranets.

Supply Chain Consultants (Wilmington, Del.; Enables: Order/Demand Management, Decision Support/Consulting, Fulfillment/Logistics). Provides supply chain planning software and consulting services that help manufacturers optimize the supply chain. SCC’s Zemeter software provides collaborative planning, demand management, inventory management, supply planning and finite scheduling.

Supply Chain Solutions Inc. (Grand Rapids, Mich.; Enables: Fulfillment/Logistics). Has enhanced inventory visibility and replenishment with exception-based alerts to perfect inventory control, enabling the management of complex inbound material flow and outbound distribution.

SYSPRO (Costa Mesa, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, CRM, PLM, Fulfillment/Logistics, Payment). Pushing the boundaries of technology to extend core ERP product and enable smaller to midsize manufacturers and distributors to successfully compete with larger establishments in their respective markets.

Technical Services Associates Inc./Puridiom (Mechanicsburg, Pa.; Enables: Payment, Supply Chain Integration & Infrastructure/ERP, PLM, Decision Support/Consulting, Procurement, Fulfillment/Logistics, Sourcing, Order/Demand Management). First procurement application available for the PC and Windows. Led push to integrate suppliers via EDI and later by cXML. Has promoted the use of blanket agreements to enable self-service procurement strategies.

Teradata, a division of NCR (Dayton, Ohio; Enables: Order/Demand Management, Procurement, Fulfillment/Logistics, Decision Support/Consulting, PLM, Supply Chain Integration & Infrastructure/ERP, Payment, CRM). Solution provides visibility, accurate monitoring, analysis and proactive alerting across entire supply and distribution chain while decreasing costs.

Terra Technology (Norwalk, Conn.; Enables: Order/Demand Management). Introduced Real-Time Forecasting (RTF) solution in 2003 and Real-Time Inventory (RTI) in 2006, helping clients decrease forecast error by 50+ percent and cut safety stock by 20+ percent.

The Mpower Group (Oak Brook, Ill.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, PLM, CRM, Payment, Decision Support/Consulting). Focused on change management and transfer of skill and knowledge. Working with companies on an advanced Supply Chain/Sourcing Maturity Model, changing sourcing groups to Value-creating Organizations.

TradeBeam (San Mateo, Calif.; Enables: Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment). On-demand, end-to-end global trade management suite addresses such thorny challenges as supply chain visibility, global logistics and import and export compliance.

TradeStone Software (Gloucester, Mass.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Payment, Supply Chain Integration & Infrastructure/ERP, PLM). Pioneered Unified Buying approach, helping companies streamline international and domestic supply chains, source opportunistically and globally and make more intelligent purchasing decisions.

Transplace (Plano, Texas; Enables: Fulfillment/Logistics). Believes capacity will be the key issue plaguing the logistics industry for years to come, and says ideal solution is collaboration, which can be achieved through on-demand solutions.

TrenStar Inc. (Denver, Colo.; Enables: Sourcing, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Mobile asset management pioneer that tracks millions of assets daily. Its pay-per-use model supports the pooling of common containers and other mobile assets.

Verian Technologies (Charlotte, NC; Enables: Sourcing, Procurement, Fulfillment/Logistics, Payment, Supply Chain Integration & Infrastructure/ERP). Meeting mid-market requirements for robust e-procurement functionality, capturing and managing 100 percent of non-payroll spending.

VeriSign Inc. (Mountain View, Calif.; Enables: Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Helping the consumer goods, retail and pharmaceutical industries access and manage data that translate into real-time visibility of product location, supply and demand by enabling information exchange and collaboration among global supply chain participants.

Verticalnet Inc. (Malvern, Pa.; Enables: Decision Support/Consulting, Procurement, Fulfillment/Logistics, Sourcing). Verticalnet’s greatest innovation over the past year has been the push to put into operation it’s “on-demand” service.

Vinimaya (Shelton, Conn.; Enables: Procurement). First software-based solution for enabling suppliers on e-procurement solutions much faster and less expensively than traditional methods.

Vision Chain (Washington, DC; Enables: Order/Demand Management). Supply chain managers at consumer product companies use Vision Chain for a single location to feed daily point-of-sale (POS) data into demand forecasting apps, tie purchase orders to retailer trade deductions, combine RFID read events with demand data and monitor inventory from point of shipment through the warehouse to the retail store.

Vitria Technology (Sunnyvale, Calif.; Enables: Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Fulfillment/Logistics, CRM). Solutions provide real-time visibility of inbound/outbound orders. Helps actuals vs. historical trends comparison by the hour, enabling companies to react to problems that could result in loss of business.

Vue Technology (Lake Forest, Calif.; Enables: Supply Chain Integration & Infrastructure/ERP). Offers scalable, item-level RFID solutions for retailers and their supply chain partners. Enables a small number of RFID readers to network across thousands of antennas, increasing the number of zones a typical reader can support and eliminating many cost barriers associated with item-level RFID rollouts.

WhereNet Corp. (Santa Clara, Calif.; Enables: Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP). Through its active RFID Real-Time Locating System technology, WhereNet has connected mobile assets with the people and information systems charged with managing those assets on a minute-by-minute basis.

Xign Corp. (Pleasanton, Calif.; Enables: Payment). Automates the financial flows between buyers and suppliers on the back end of the supply chain. Xign’s electronic settlement network manages working capital, helping buyers tap early payment discounts to reduce corporate spend while suppliers accelerate collections and reduce their days sales outstanding.

2006 SDCExec “Companies to Watch”

This year’s “100″ feature includes a supplemental list of “Companies to Watch” that includes solution providers implementing innovative projects to help their customers achieve new levels of supply chain performance. Among the many entries submitted for this year’s “100″ list, the “Companies to Watch” stood out for their ground-breaking work within their particular segments of the supply chain.

Acquirex (Long Beach, Calif.; Enables: Procurement, Payment) Developed innovative web service integration technology that allows customers to tightly integrate electronic purchasing to their existing technology infrastructure and MRP/ERP solutions

CDC Software (Atlanta, Ga.; Enables: Supply Chain Integration & Infrastructure/ERP, Customer Relationship Management) Case study for Wise Foods shows the company reduced inventory while maintaining a 99.6 percent service-to-sales level;, cut labor costs by predicting needs more than 24 hours in advance, saving $600,000 annually; and decreased changeovers by 35 percent across packaging and processing lines.

EntComm Inc. (Los Angeles, Calif.; Enables: Order/Demand Management, Sourcing, Procurement; Supply Chain Integration & Infrastructure/ERP Customers save over 4.5 percent of their supply chain costs within the first year by automating procurement, planning data and invoicing with over 90 percent of supplier base.

eWork Inc. San Francisco, Calif.; Enables: Procurement, Sourcing, Decision Support/Consulting) Provides vendor-neutral business process outsourcing strategies and solutions for the contracted workforce. Also integrates enterprise-class apps, outsourced managed services, and a consultant supplier network.

Global4PL SCM Consulting and Software (San Ramon, Calif.; Enables: Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Payment) Global4PL is a consulting company and technology broker that helps small to large sized companies that do not have the time or the experience to negotiate confidently with their vendors.

Infravio (Cupertino, Calif.; Enable: Product Lifecycle Management, Supply Chain Integration & Infrastructure/ERP) The creator of Service Delivery Contracts for enabling customization of Web Service/SOA style integrations. Users attribute it to a 95 percent reduction in the cost of integration and a 20-time improvement in integration speed.

InStream Financial (Huntington Woods, Mich.; Payment) Company’s product developed to integrate with B2B networks as Web-based financing solution. Requires no contractual commitment from buyers, leverages many lenders to fund its transactions and purchases supplier receivables.

Intervolve Inc. (Raleigh, NC; Enables: Customer Relationship Management) Intervolve pioneered providing on demand supply chain software using web and mobile technologies for the beverage and overall consumer goods markets.

Liaison Technologies (Alpharetta, Ga.; Enables: Supply Chain Integration & Infrastructure/ERP) Liaison Technologies’ offerings are delivered as managed services and are causing manufacturers to revaluate the competitive advantages that on-demand and managed services can bring to global businesses.

MFG.com Inc. (Atlanta, Ga.; Enables: Procurement, Sourcing) MFG.com is an online marketplace serving the manufacturing community with a focus on customer experience to help companies compete in a commoditized market with thin margins and tough competition.

National Logistics Management (NLM) (Detroit, Mich.; Enables: Order/Demand Management, Procurement, Sourcing, Fulfillment/Logistics, Payment, Customer Relationship Management, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP) NLM determines optimal shipping modes and coordinates shipments based on best price and quality. Its techniques have transformed how manufacturers order urgent shipments of components, resulting in reduced costs and improved quality of service.

Nulogy Corporation (Toronto, Canada; Enables: Decision Support/Consulting, Product Lifecycle Management, Supply Chain Integration & Infrastructure/ERP, Order/Demand Management, Sourcing, Fulfillment/Logistics) Nulogy has developed a platform of operational intelligence software tools that enables supply chain managers to make decisions more intelligently, more quickly, and with more focus.

One Network Enterprises (Dallas, Texas; Enables: Fulfillment/Logistics, Sourcing, Procurement, Order/Demand Management, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Customer Relationship Management, Payment) One Network Enterprises pioneered real-time Web-based appointment scheduling.

OnVantage Inc. (Santa Clara, Calif.; Enables: Procurement) MeetingView is about to launch the first real-time electronic marketplace for purchasing meeting rooms and associated groups of sleeping rooms that includes real-time “best practice” guidelines, enabling users to make sourcing decisions.

Precision Industries Inc. (Omaha, NE; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Payment, Customer Relationship Management,; Decision Support/Consulting) Company’s collaborative approach to expanding traditional supply chain models includes service parts management and a centralized storeroom offering.

Technology Group International (Ohio; Enables: Decision Support/Consulting, Product Lifecycle Management, Customer Relationship Management, Supply Chain Integration & Infrastructure/ERP, Order/Demand Management, Sourcing, Fulfillment/Logistics, Procurement) Provides enterprise software solutions for small to medium size companies with such features as user-specific dashboards, MapPoint, VOIP and increased functionality to allow users to remain fully compliant for the Bioterrorism Act of 2002 and 21 CFR Part 11 rulings.

Transzap Inc. (Denver, Colo.; Enables: Decision Support/Consulting, Payment, Sourcing) SpendWorks, by Transzap, is an e-payables service that simplifies the tasks involved in procuring and paying for goods and services. Transzap innovatively addresses three key issues: accessibility, mobility and simplicity.

2006 SDCExec Vertically Focused Solution Providers to Watch

This year’s “100″ feature includes a supplemental list of “Vertically Focused Solution Providers to Watch” that includes enablers implementing innovative projects to help their customers in specific industry segments achieve new levels of supply chain performance. These companies stood out for their pioneering approach to supply chain challenges in their target industries, but they are worth a look for supply chain executives in any sector.

Deacom Inc. (Wayne, Pa.; Enables: Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Product Lifecycle Management) DEACOM ERP software remains the only business software system for building component, prefabricated housing, process and mixed-mode manufacturers to integrate all functional areas of a manufacturer, thus providing a comprehensive view of the entire operation.

eSchoolMall (Horsham, Pa.; Enables: Order/Demand Management, Sourcing, Procurement, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Payment, Fulfillment/Logistics) eSchoolMall is a leading provider of online procurement software and services for K-12 Schools.

Instill Corporation (Redwood City, Calif.; Enables: Procurement) A pioneer of on-demand for the food service industry, Instill automates the collection, translation, and standardization of unit-level invoice data from distributors and presents the information in applications that identify contract price variances, order guide non-compliance, and opportunities for SKU rationalization that drive measurable reductions in food costs of 2 to 5 percent.

Provide Commerce Inc. (San Diego, Calif.; Enables: Order/Demand Management, Procurement, Fulfillment/Logistics, Payment, Supply Chain Integration & Infrastructure/ERP) Provide Commerce started Proflowers.com, using technology to eliminate warehouses and importers. The company continues to branch out into other high-quality perishable goods markets and plans to launch a new subsidiary every year.

Webb/Mason (Baltimore, Md.; Enables: Order/Demand Management, Procurement) Webb/Mason embraced the Internet providing customers with a non-traditional online print ordering solution that produces tangible and measurable results. In 1998, Webb/Mason developed Enterprise Print Management Online.

Is there a company you’d like to nominate for the 2007 Supply & Demand Chain Executive 100? e-Mail Andrew Reese: areese@sdcexec.com.
From Supply & Demand Chain Executive, June/July 2006

Oct. 12, 2006 — Sales of Enterprise Resource Planning (ERP) applications are expected to grow an average of 10 percent over the next five years according to a report released this week by Boston-based research and analysis firm AMR Research. As has been the case in recent years in the ERP market, the category is dominated by two companies, SAP and Oracle, at least in terms of revenue share, and AMR Research is forecasting that this trend will continue in 2006. The report indicates that SAP captured 42 percent of the ERP market’s revenue share in 2005 and that the software company’s share will increase to 43 percent in 2006. Oracle comes in a distant second, but still commanded 20 percent of the ERP revenue share in 2005, with it too projected to grow its share even more in 2006, to 23 percent. After those two companies, there is a sharp dropoff in revenue market share captured by other ERP vendors. For example, the company with the third highest revenue share in 2005 was the Sage Group (6 percent), and AMR Research forecasts Sage’s share to decline slightly to 5 percent in 2006. Microsoft came in fourth, with 4 percent ERP market share in 2005 and projected 4 percent in 2006.

Around the year 2000, ERP in general was considered by most analysts as offering substandard supply chain capabilities for managing such activities as complex warehouse management, order management, advanced planning, and more. The ERP concept originally came up through the manufacturing world, and many ERP packages were initially focused on financials with human resources, and basic (infinite, not capacity-based/finite) planning and scheduling and warehouse management. But since then, most ERP companies have improved their supply chain functionality, with some extending their reach into manufacturing execution, Customer Relationship Management, Web portals, and more. That meant the ERP vendors started encroaching into the domain of so-called Best of Breed supply chain software vendors such as Manhattan Associates, EXE, Provia Software, and others. “The integrated versus best-of-breed debate still goes on in some organizations, but the [ERP] suite advocates are clearly winning,” says Jim Shepherd, senior vice president of research at AMR Research.

Indeed, a report issued last month by AMR Research about the supply chain management application market shows that SAP was the top SCM (Supply Chain Management, which includes warehouse, transportation, network design, inventory control, and more) vendor in terms of revenue, with 12 percent of the market in 2005. Oracle was second in 2005 SCM revenue share with 10 percent, followed by i2 Technologies with 5 percent, Manhattan Associates with 4 percent, and infor with 3 percent.

ERP sales are also benefiting from a widespread acceptance of the idea that businesses must have integrated information systems to be competitive, and the most effective way to satisfy this need is to purchase an ERP package that features broad functionality and pre-built integration. AMR Research forecasts that the global ERP market revenue will reach $29 billion in 2006.

The increasingly global nature of consumer packaged goods manufacturing has had an impact on every supply chain link, especially the one that gets goods to market.

WAREHOUSE MANAGEMENT SOFTWARE that integrates with material handling equipment speeds fulfillment in complex, high-volume, retail distribution environments.

Roles are blurring in the retail, wholesaler, and distributor supply chain arena, and the definition of what the “distributor” now does is not so easily defined. Big retail operations—Wal-Mart naturally springs to mind—primarily use their own distribution networks, though they also use wholesale distributors.

“By the classic definition, the wholesaler/distributor sells goods. Logistics service providers do not. Manufacturers consider [wholesalers and distributors] to be a critical channel for getting goods to certain parts of the market. A wholesaler may provide delivery logistics services, but usually contracts for this service via 3PLs or carriers,” notes Greg Aimi, AMR Research’s director of supply chain research.

Apparel, food and beverage, books, over-the-counter drugs, home appliances, and industrial products such as computers, telecommunications, and automotive after-market products that are used by consumers also tend to use wholesalers/distributors who own/manage the inventory. Retailers and Consumer Packaged Goods (CPG) manufacturers are outsourcing selected distribution functions to 3PLs, transportation providers, or package delivery/logistics service providers such as UPS. All retail distributors, however, whether they own product or are responsible only for managing and moving it, have one overriding goal in common: moving it as quickly and cost-effectively as possible to the right destination.

Tools You Can Use for Basic Distribution
“Retail distributors work on a variety of push/pull models,” explained Chris Heim, president and general manager of 3M’s HighJump Software. “Historically with retail you see the push model, which is a sophisticated form of cross docking. For example, specific store distribution for a sea container from China that arrives at the DC receiving dock has already been predetermined. This ‘distro’ is in the warehouse system and is automatically referenced at receipt unloading, and the goods are conveyed and diverted to the appropriate trailers for distribution to the stores. That delivery leaves very little footprint in the DC.”

“The idea is to get product into stores and on shelves as fast as possible,” added Delbert Merritt, HighJump product manager. “Product obsolescence and time to market are a couple of the driving factors behind incorporating JIT/lean concepts to distribution.”

The tools retail distributors must have, according to Merritt, include a flexible Warehouse Management System (WMS) working in conjunction with transportation management, yard management, order management, labor management, RFID, vendor managed inventory, and supplier portals—the whole supply chain execution suite. “People are looking for best of breed supply chain execution solutions that easily integrate with their other business solutions,” Merritt says.

Dealing with Extended Supply Chains
However, with the advent of outsourced manufacturing, supply chains have become extended, in which case distribution becomes the differentiating factor, according to Heim of HighJump Software. “The 3PL market is growing, but it’s been out there for a while,” he said. “The mass advertising by major brand names like UPS has just given it higher visibility among the general population.”

Both Heim and Merritt concur that supply chain execution and supply chain management solutions probably should be deployed as enterprise solutions. “And you want all the pieces of your SCE/SCM to communicate seamlessly, in the same way that ERPs have traditionally done with sales, financials, and HR,” Heim said. “For instance, you want your WMS, LMS, YMS, and other applications working together seamlessly and across your whole corporation. You then want these solutions to easily integrate to your ERP.”

HighJump says its biggest opportunity for growth is to continue to expand its footprint into additional SCE/SCM solutions that cover the whole supply chain, from source to consumption.

Making On-Time Delivery
One HighJump customer needing sophisticated distribution capability in a hurry was Dorfman Pacific (Stockton, CA), an 80 year-old manufacturer and distributor of cowboy hats and other headwear. The company has survived and prospered based on strong customer service, product quality, competitive prices, and on-time deliveries. Healthy growth over the last decade, however, was creating some challenges at the on-time delivery end.

“Everything, pick, pack, and ship, was paper-based, and we had people driving around all over our 300,000 square feet of warehouse, chasing down orders,” said Mark Dulle, director of ITS for Dorfman Pacific. “We were paying about one quarter million [dollars] in temporary work wages. We have a two-day ship service level, and we couldn’t do this on the paper-based system. The DC needed to accommodate growth, we’re currently at 20 thousand SKUs, and get to the point where we could pick by pallets, cases, and items across multiple zones, and ship from multiple doors,” he said. “About 50 percent of our business is for the big box chains and the other half for mom and pops. We also fulfill at the item level for catalog customers.” The company selected HighJump’s Warehouse Advantage WMS.

“The big challenge was the ability to plan daily,” Dulle explained. “Now we can analyze orders downloaded from the ERP, calculate replenishment needs, and setup speed bins for picking and other operations. We also needed flexibility, because we’re doing fulfillment for two or three customers where we act as their warehouse, basically doing 3PL, as well as value-adds like custom invoicing, price ticketing, labeling, and repack.”

The automated WMS has really improved volume picks, he noted. “One touch labeling and they’re out the door. We’ve won an award for being the fastest shipper in the industry. Our target was to eliminate the temp labor—we just went through our big season and didn’t flinch, and we’re on target with our labor budget.”

Bypassing Distribution Altogether
For those companies who outsource manufacture and who lack a distribution infrastructure, UPS’s Trade Direct program will receive and consolidate/deconsolidate their product overseas and ship it direct to stores or customers for them. The service also includes customs clearance, ocean or air freight management, and port services.

“There’s a fairly aggressive move afoot among larger and mid-size retailers to deal direct with offshore manufacturers, and avoid wholesaler margins,” said Randy Strang, UPS’s vice president, retail sector. “Typically, anywhere from 10 percent to 30 percent of offshore goods are directly sourced by retailers, and that percentage is growing. Cost is driving it: savings of up to 5 percent net can be realized by sourcing directly from the manufacturer. We’re seeing mid-tier companies finding ways to direct source as well.”

From UPS’s viewpoint, the trend opens up a new group of customers for many of its SCS products including Supplier Management and Trade Direct services. “The mid-tier isn’t going to have the infrastructure to deal with global distribution. The longer the supply chain is, the more opportunity for us.” Nonetheless, wholesaler/distributors won’t disappear. “They serve a valuable niche supplying last-minute product and managing inventory and stock,” said Strang. “Retailers of lower-value goods rely on distributors.”

Wholesaler Distributors
As we move from domestic to far more complex global supply chains, however, the number of channel partners involved increases exponentially. “Wholesaler/Distributors cross retail sectors, typically industries including apparel, food and beverage, and home appliance and accessories,” says Qin Deng, a research analyst for AMR Research. “Overseas manufacture has had a significant impact on wholesalers in extending the supply chain and consequent issues such as longer lead times, floating inventory, and unreliable delivery.”

“Also, as product comes off an Asian production line costing only cents on the dollar, wholesalers are under increasing pressure to lower their prices accordingly while sitting on inventory longer,” Aimi said. “Interestingly the wholesaler/distributor has an opportunity that the manufacturer doesn’t: it can substitute lower-cost product from a different source. By doing so, the wholesaler can increase profitability or use the price break to increase market share.”

“For small and mid-size companies, wholesaler channels are more critical,” Deng said. “Also, some low-cost countries’ manufacturers don’t have direct access to retailers in western countries and depend on the wholesale channel for sales. In Europe, some chains such as Tesco and Metreo are developing their own brand in various products, and this will negatively impact wholesalers.”

Visibility in Support of Value-Added Service
“Fundamentally, the value that wholesale distributors have is making the purchasing and supply of goods easier for the retailer than if they did it themselves,” explained Julian Archer, who manages the marketing for Intentia’s distribution sector. Intentia International, headquartered in Stockholm, is soon to become the world’s fourth largest enterprise software provider after the completion of its merger with Lawson Software. The company provides end-to-end enterprise systems for mid-market manufacturers, wholesalers, and distributors primarily serving apparel, food and beverage, and asset-intensive industries such as aerospace and defense.

ave to make sure their entire supply chain is integrated—from forecast to production, to assembly houses in Europe, to global distribution centers.” Archer says Intentia’s Movex ERP system architecture is Java-based, enabling the level of interoperability that companies require.

“Two trends in wholesale distribution need to be supported,” he says. “The provision of an ever growing range of value-added services and company growth. Because margins are so extremely thin, in order to sustain margins, distributors are buying other companies and then pulling together their disparate information systems. Open architecture is critical not only for enterprise interoperability and visibility, but also agility, to ensure the flexibility to change processes and connections as business requires.” Intentia has unveiled plans for Movex 3 that will provide a business process layer to connect with other service-oriented networks and applications.

“The big retailers are only getting stronger and more powerful, forcing the big wholesalers to be more agile in the services they offer,” Archer said. “To respond quickly with new services and track attendant costs, you must have a transparent view of your organization. In this new world of global distribution, how else can you manage all the tentacles – the supplier and customer initiatives along with your entire supply chain?”

Distribution on the Road
Route distribution has its own set of challenges—lately top among them the escalating cost of fuel and shortage of reliable drivers, increasing distributor ship overhead significantly. “A big pain point for distributors is a need to optimize driver performance and routing,” said Andrew Roszko, Cube Route’s director of operations. Cube Route is an on-demand fleet management solution provider that uses GPS to provide realtime driver movement and order tracking as well as route optimization software.

“One customer, Empire Distributors in Atlanta, is a liquor, wine, and beer distributor who runs 35 to 40 trucks a day. They pay drivers by salary and had trouble locating their drivers during the day without calling them on the radio. They’re using our hosted Web-based Visibility product on Nextel cell phones. We’re platform-independent, but the majority of folks have cell phones,” he noted.

Empire Distributors already had UPS’s RoadNet Routing system, so it doesn’t use Cube Route’s routing-on-the-fly time-sequencing module. Route and delivery time data is downloaded from RoadNet to the Cube Route system, which estimates drive time—taking set up and delivery times, distance, current traffic patterns as well as realtime performance data into account. At the beginning of the route, drivers click in odometer information on the Nextel phone and then follow menu-driven routing, eliminating the need for a trip sheet. The system uses the cell phone’s GPS to audit drivers on a central screen at the home office, giving the dispatcher has realtime delivery information, which is also accessible to sales and customers.

“ROI comes quickly, from eliminating clerical work, and asset, driver, and route optimization. Typically our customers see 10 times ROI within a year,” Roszko said.

Dyrc McLeod, director of operations for Empire Distributors, has seen the number of deliveries increase from 500 to 700 deliveries over the last four years. “All of our clients have tight time windows and they want multiple stops so they don’t have to carry inventory,” he explained. We had dispatch on the radio all day trying to locate drivers to find out if they were on schedule or not. We wanted GPS to locate the trucks, but also allows us to be proactive and manage our day in order to provide better customer service.”

McLeod explained they take Cube Route’s deliveries schedule and plug the data into RoadNet. “Fuel prices being what they are, the software lets us assess the profitability of a route and allocate and sequence deliveries far more efficiently to save on fuel costs. Over the last four years, business is growing and we’re able to operate with fewer trucks.”

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Deb Navas, editor at large for Supply Chain Manufacturing & Logistics magazine, has published over 200 articles internationally in consumer, business, and trade magazines. She has been writing about supply chain and data collection technologies for fifteen years.

DALLAS–(BUSINESS WIRE)–In the new world order the customer is king, and has become smarter and more demanding. Customers expect precise delivery and price quotes, perfect order execution, demand visibility to any potential issues with delivery and fulfillment, and they expect a clean, consolidated invoice regardless of your internal system challenges. Faced with these rising customer expectations, the order management and fulfillment process is now where the “rubber meets the road” for a company. The Customer Order Management suite from i2 Technologies, Inc. (Nasdaq:ITWO) can help companies overcome these obstacles and achieve unprecedented levels of customer service while serving as the engine to drive performance, accelerate cash flow and fuel growth.

“i2 best suits customers who seek an order hub among disparate systems and require complex order fulfillment processes,” writes R “Ray” Wang with John Ragsdale and Ian Schuler in the Forrester Wave Vendor Summary, Q2 2006, “i2 Is a Very Strong Performer in Order Hubs.” Among the 12 solutions evaluated, the solution scored the highest in order capture to order fulfillment processes. “Availability to promise and the complex fulfillment processes stand out as best in class.”

The Customer Order Management suite enables companies to better manage the complexities of the complete order to fulfillment business process. The solutions are packaged to address the major process areas of order management including: quote-to-order, order-to-fulfillment and order lifecycle visibility.

Business Challenge

Increased complexities in products, configurations, channels, and ever changing supply chains present significant roadblocks to archive excellence while presenting a unified customer experience. This is compounded by a lack of coordination, limited visibility and difficult collaboration across the myriad of partners, systems and solutions typically involved as an order progresses through its lifecycle: quoting, configuration, pricing, validation, scheduling, sourcing, fulfillment, service, invoicing and returns.

Acquisitions, process and product differences, varying customer preferences, regional nuances and a legacy of regional or specialized point-to-point fulfillment solutions create an environment where global order, capacity and inventory visibility with coordinated multi-enterprise fulfillment becomes an impossibility. A company’s extended supply chain should be its most strategic customer service weapon to address this challenge, but the legacy of enterprise resource planning (ERP) installations has left most having to sacrifice order management and supply chain integration in favor of internal alignment with a financial set of books. While this speeds month-end financial consolidation, it offers nothing to the customer when asking the question “Where is my order?” i2’s Customer Order Fulfillment Suite cuts through this maze by simplifying and coordinating complex interactions and processes, while bringing the full capabilities of the extended supply chain into the order quote to fulfillment process.

“As a company attempts to keep up with global trade growth, mergers and acquisitions, outsourcing and increased competitive pressures, they inevitably find they need more flexible, integrated processes and systems that focus on coordinating operational activities to sustain, and even drive new levels of customer satisfaction and revenue growth,” said i2 Vice President of Solutions Strategy Jim Caudill. “i2’s Customer Order Management suite allows companies to deploy strategic order management and fulfillment solutions to meet its unique and frequently changing business needs.”

Benefits of the i2 Customer Order Management suite include:

ability to allocate, promise and source to configuration, capacity and availability;
global visibility into demand, supply, capacity and capabilities across the supply chain;
shortening of the quote-to-cash process to increase revenues and accelerate cash flow;
an answer to the question, “Where is my order?” by providing a process-centric, 360 degree view of each order – even when serviced by other divisions, intermediaries, interdependencies, and across multi-echelon value chains;
support an “order from anywhere, fulfill from anywhere, return to anywhere” strategy to meet the dynamic multi-channel selling models;
ability to leverage existing systems and solutions investments.
Additionally, by offloading complex processes to the i2 Customer Order Management suite, an organization can more rapidly realize the promised financial benefits of ERP rationalization and standardization. This is a key characteristic of all i2 new-generation solutions, allowing companies to better leverage their existing technology investments without facing a lengthy, expensive and risky rip-and-replace strategy.

Built on the i2 Agile Business Process Platform

The i2 Customer Order Management suite was built from the ground up with the i2 Agile Business Process Platform offering a state-of-the-art service-oriented architecture, enabling companies to rapidly tailor order management to respond to new opportunities. Pre-defined templates and workflows offer rapid, reduced time-to-value implementations. The solution’s visual design environment allows users to rapidly tailor all order management business processes, business rules, data models and integration touch points, to deploy highly specialized role-based user interfaces, and to speed integration with legacy systems and trading partners. The i2 ABPP brings greater speed, agility, quality, and cost-efficiency to any order management or supply chain process.

About i2

i2 helps business leaders make better supply chain decisions. i2’s flexible new generation solutions are designed to synchronize demand and supply across ever-changing global business networks. i2’s innovative supply chain management tools and services are pervasive in a wide cross-section of industries; 20 of the AMR Research Top 25 Global Supply Chains belong to i2 customers. Learn more at www.i2.com.

i2 Cautionary Language

This press release may contain forward-looking statements that involve risks and uncertainties, including forward-looking statements regarding i2’s New-Generation SCM solutions, a customer’s ability to implement or integrate those solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to i2 solutions. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors which could impact i2’s financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2’s recent filings with the SEC, particularly the Quarterly Report on Form 10-Q filed November 7, 2006 and the Annual Report on Form 10-K filed March 15, 2006.