JDA Completes Manugistics Integration

published: cw 04, 2007 in Supply Chain Software

JDA Software Group, Inc., a developer of supply-chain optimization software, completed its final integration initiatives related to its July 2006 acquisition of Manugistics. The Company adopts Manugistics? open and scalable architecture platform, and lays off 100 employees from its product development team.

JDA has adopted Manugistics’ open and scalable architecture platform as the underlying foundation for its suite of advanced planning and optimization solutions. JDA expects to realize additional annualized cost savings in excess of $15 million from adopting this platform, re-branded the JDA Enterprise Architecture.

By making possible one view of customer demand across all enterprise planning and optimization activities, JDA Enterprise Architecture reportedly helps users to make faster, smarter decisions in manufacturing, sourcing, supply chain planning, distribution, merchandising, logistics, promotions, replenishment and shelf optimization. Already able to deliver 20 solutions on the new architecture, the company will reportedly demonstrate a time-to-market advantage by delivering its first new application on this platform as early as the second quarter of this year.

“We have spent the past six months analyzing the Manugistics platform and the outcome has surpassed our expectations,” said Hamish Brewer, JDA CEO. “We are convinced that this architecture provides by far the most scalable and proven architecture for advanced planning and optimization solutions. Additionally, this decision has dramatically accelerated our time to market for a fully integrated suite, which is deliverable today on a platform that is proven in over 100 major customers.”

JDA today also released preliminary, unaudited results for the fourth quarter of 2006. JDA anticipates total revenues of approximately $89 million and software revenues of approximately $17.7 million for fourth quarter 2006, compared to total revenues of $89.2 million and software revenues of $13.7 million for third quarter 2006.

With the synergies achieved by adopting the JDA Enterprise Architecture, JDA laid off 100 employees within its new product development team. With this reduction, JDA will employ approximately 1,600 associates worldwide, including 440 in new product development.

“The decision to reduce our workforce was a very difficult one to make. We have long viewed our global associates as our greatest competitive advantage,” said Brewer. “However, the advantages of standardizing on one platform made this decision compelling. We will now be able to reduce our research and development spending so that it is more in line with industry norms,” said Brewer.

Source: Logistics Today


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