| IDII
Software Newsletter - Vol 1 No 7- May 26th 2000 |
To assist the professional dealing with software in Warehousing Distribution, Logistics,
and the Supply Chain.
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Techniques, Vision, & Educational Thoughts
Part Two--Business-2-Business [B2B]:
To B2B or not to B2B?
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In a previous issue, an article surfaced
on the Business-to-Business [B2B] craze underlining
the profuse news and contract wins that the
major vendors had recently announced. As
a follow-up to Part One, we will note the
upward revisions of the B2B space and the
early "bumps" that B2B enablers
along with their Global 500 client lists
are experiencing.
Based on revised upward estimates, the total
B2B marketplace can expect to exceed $5.0 - $7.0 trillion USD by the year 2004 according to the leading industry analysts.
What do the upward revisions communicate
to the market and industry watchers? Very
simple, the revised numbers continue to validate
the model and method of B2B as viable, high
growth sector, with a very appealing Value
Proposition for eBusiness Enterprises: (1)
Faster Time-to-Market, (2) Lower Costs of
Goods, and (3) Streamlined Processes for
greater Efficiency and Inventory turns.
The recent stock market fallout with the
Nasdaq declining some 35% over a 30-day span
has left many of the B2B early adopters losing
significant market capitalization. This decline
has led many investors and analysts questioning
the legitimacy of the B2B sector. The element
of truth within the skepticism seems to be
that many of the high-flyers with little
to no value add will not be a permanent fixture
within the B2B space. On the other hand,
there will be significant B2B winners. Companies
such as Oracle, Ariba, and Commerce One all
announced stellar earnings reports in the
last few weeks, which validated their leadership
position in B2B, both as eProcurement providers and Independent Trading Exchange [ITE] application enablers.
The foot race scurry has definitely begun
in which the established Global Enterprise
Software firms—
SAP, Oracle, J.D. Edwards, and i2 Technologies—will dominate and exploit the revenue boom
in the B2B sector during the next few years,
along with the early adopters of Ariba, Commerce One, CheMatch.com, Inc.,
and Ventro [formerly Chemdex—Nasdaq, CMDX]. What do
all of these firms have in common? Visionary
management teams who are deploying the necessary
resources with "strategic wins"
to build company and industry momentum in
the exciting B2B space. The boom has begun
and will most likely surpass the ERP boom
of the early-mid 1990’s. Why else would the
market justify a 425% market cap increase
in Oracle’s stock over the last (6) months,
or a $20 BUSD market cap for Ariba, a B2B
firm with only $63 MUSD in annualized revenues?
Finally, we need to overview some of the
key issues and factors being considered today
in lieu of the frenzy of activity and reporting
over the B2B explosion. The identified issues
are key aspects of concern for all leading
B2B vendors in respect to an ITE’s Business
Model and Functionality.
Multiorganizational Support:
- ITE Vendors must execute a Many-to-Many ITE
Support relationship.
Neutrality:
-
How do the ITE Host, Software Enabler,
and
Subscribers address the issues of ITE
neutrality
to ensure a bulletproof ITE Value Proposition
by extending and adding value to an
Enterprise’s
Supply Chain.
Saturation:
- According to AMR Research, over (600) ITE’s
began operations during the past year.
According
to AMR, these (600) ITE’s will consolidate
into a select group of (50-100) by
2001 [i.e.
see also www.amrresearch.com for further reading].
Integration:
- What level of strategic Enterprise integration
can the leading ITEs achieve within
the expanded
company’s Value-Chain to accomplish
Enterprise
Optimization across multiple Enterprise
Applications?
Expertise:
- What specific expertise does a designated
ITE vendor bring to the table in respect
to their History and Industry Knowledge?
Execution:
- The successful B2B firms in the ITE arena
will most definitely be the "crème
of the crop" in executing flawlessly
their business plan to exploit market
share
and add enormous value to their Client’s
Value Chain.
(Article by Jared S. Faellaci; jfaellaci@attglobal.net)
IDII News
- New Advanced WMS RFI - RFP contains over 700 detailed questions for warehousing tasks, 3PL functions,
TMS, EDI, Returns, Host Interfacing, Material
Handling Interfacing, and Web enablement.
The ADVANCED WMS Bundle includes (1) copy of the Advanced WMS RFI,
(1) copy of the WMS Research Report called
"What To Look For In Warehouse Management
System Software", and (1) copy of the
latest WMS Software Directory. The advanced
WMS RFP - RFI is designed for companies searching for a new
WMS. It will save them significant time and money
by clarifying WHO, WHAT, and WHERE in WMS
software industry. Many consulting firms
have purchased the Advanced WMS Bundle to
their clients.
Dennis Seipel of Action System Associates (a WMS provider) remarks to IDII "I have received a couple of RFI's that were
based on your company's WMS RFI (RFP)
and
was impressed with the thoroughness." Questions in the WMS RFI are accurate,
detailed, validated, and color highlighting
shows rapidly what a WMS solution does and
does not do. The report educates on common
WMS functional differences and common functional
deficiences. The WMS Software directory lists
North America (and some European based) WMS
& ERP providers.
Software Company News
- GOwarehouse.com (B2B, 3PL) - launches logistic network providing Internet-based
resources that enable management of logistics
& physical inventory. The network forms
a transparent hub that enables partners (merchants,
manufacturers, distributors, and all trading
partners) to automate transactions and control
inventory for maximum supply chain efficiency.
The GOwarehouse network has three key resources:
- Logistics network providing order process
automation, fulfillment data aggregation,
virtual, and physical inventory syncronization,
and no-touch, error-free order entry.
- Management portal for online order inquiry
and tracking, supply chain visibility,
inventory
analysis, trend forecasting, and
supply chain
performance reporting.
- 3rd Party Logistics (3PL) exchange for matching
buyer and sellers of logistics
and warehousing
services around the globe.
- J.D. Edwards (ERP, CRM - Nasdaq: JDEC) - Reports 22% License Revenue Growth in
2nd Qtr Ending April 30th. Total
revenue
remained steady ($231.0 million vs
$231.6
million in 2nd qtr of 1999). License
revenue
grew 22% ($81.7 million). Service
revenue
decreased ($149.3 million vs $164.4
million
in 2nd qtr of 1999). Editor's note: Increased license revenue
growth is a very good sign. In addition, J.D. Edwards has signed a number
of large customers for it's Active
Customer
Relationship Management software.
-
Logility (WMS, TMS, B2B - Nasdaq: LGTY AMSWA) - Partners with Technology Solutions Company
(Nasdaq: TSCC), a consulting & integration
company to provide B2B solutions based on
the Logilty Voyager Solutions Internet-based
product line.
- McHugh (WMS, TMS) - Standard Interface between McHugh's Logistic Suite and PeopleSoft's
e-store eCommerce solution is certified.
McHugh announces dynamic pickface slotting capability in it's Logistics Suite Warehouse
Management release 5.3 software.
The dynamic
slotting capability integrates the
slotting
execution step with normal warehouse
replenishment
activities. This eliminates the need
for
work stoppage or a separate restocking
step
while a new slotting plan is implemented.
McHugh's Slotting component optimizes
placement
of items in a pickface based on parameters
chosen by the user. Slotting can
be based
on a wide selection of criteria,
including
product pick velocity, product family
groups,
and weight and size considerations.
It also
incorporates warehouse operational
standards,
ergonomics, and special storage requirements,
such as for hazardous materials or
perishable
goods. In addition, Slotting does
operator
load balancing to maximize productivity
and
throughput, and allows for the separation
of similar products to reduce proximity
picking
errors.
What differentiates McHugh's Slotting
capability
from other slotting systems is that
it is
integrated with the Logistics Suite
WMS.
When clients are ready to execute
their slotting
plan, they simply tell the system
the date
and time to begin re-slotting. The
new slotting
plan is woven into normal stocking
and replenishment
processing. There is no re-entering
of the
new plan into a WMS, no need to bring
the
system down, no work stoppages, and
no need
for a separate restocking step.
Conferences / Trades Shows
June 13-15 - Supply Chain Expo 2000 - Rosemont Convention Center, Chicago, IL,
USA. For more information, contact (877)
665-5706 or (800) 638-6396 - Penton Media
or access the show's Web site at www.supplychainexpo.com
Websites To Check Out
www.xmljunction.net - Data Junction is giving away the Professional version of XML Junction tool for FREE (normally priced at $895) until July 31st,
2000. One must download it from their
website.
www.logistics-world.com - Educational, news, and research information
on logistics.
Quote to Ponder
"If the laws could speak for themselves
they would complain of the lawyers in the
first place.." - Lord Halifax
Scripture to Ponder
"A wholesome tongue is a tree of life,
But perverseness in it breaks the spirit."
- Proverbs 15:4 About This Newsletter
We educate and share news on software
for warehousing, transportation, shipping, packing, slotting, loading,
optimization, and enterprise wide software solutions. This free newsletter
is published twice a month and is targeted toward supply chain professionals
involved in software. Currently, it is only available electronically. Feel
free to forward this newsletter to others that you know. One may quickly
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Data & Information Inc. All Rights Reserved.. Trademarks belong to
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