IDII Software Newsletter
March 18th 2003 - Volume 4, Number 6
For PROFESSIONALS in Software for Warehousing, Logistics, and Supply Chain.
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The Perplexing Problematic Pricing Paradox of Enterprise Software Applications

When was the last time that any of us experienced hassle-free and unambiguous pricing involved with enterprise software such as WMS, YMS, ERP, or TMS applications? For those of us who answer "never" (or seldom) - please read on.

Enterprise Software and Logistics Execution Application "solutions" have all the answers. They can run your business, automate your warehouse, manage your load sequences, optimize your transportation routes, actively maximize dock-door productivity, and myriad other logistics applications. Okay you might say, where do I sign and, by the way, how much does it cost? Do blank stares fill the room with deafening silence or does the sound of all the world's tap-dancers seem to filibuster on your desktop?

Enterprise Software pricing is as complex for shoppers as the software itself…or perhaps more so. There are numerous articles being published about the challenges of finding a software solution that is priced in a consistent and predictable fashion. INTERNETWEEK.com published their opinion, "Why Enterprise Software Pricing Is Such a Problem" last September (http://www.internetwk.com/story/INW20020927S0001). In short, the article speaks for the angry enterprise software customer. In October, TechWeb published: "Readers Slam Software Companies For Pricing Problems" (http://www.techweb.com/tech/opinion_mad/20021018_mad), which points out perceptively high prices, lack of pricing transparency, and how customers must jump through many hoops before they find out the software's true cost. Whatever the application, pricing is more difficult to find than Jimmy Hoffa. And if you find it, unlocking its secrets may produce more frustration than solving a Rubik's cube in a dark room.

Purveyors of the software face a similar conundrum.
How is it possible to have pricing models available for every industry vertical application for any given size? How can there be enough flexibility in a vendor's pricing model to appeal to the masses when they all want it priced "their way" when faced with increasingly stringent ROI requirements? What comes first, the potential customer's issues (the chicken) or the vendor's daunting challenges to suit the customer (the egg)?

While there exists no Rosetta stone to translate the varying dialects found in the collective pricing languages of the enterprise software buying and selling community, there is a solution that can help. The solution captures all the costs associated with software selection and implementation, including peripheral costs that can often be overlooked. It also incorporates rate structures and a software licensing matrix that is both user friendly and collaborative. Coming in next week's announcementr, the IDII Enterprise Software Pricing Application.

 

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Lilly Software Associates Web Seminar Series

Can Supply Chain Visibility Impact Your Company?
March 19th at 2:00 p.m. Eastern

To maintain existing customers, and capture new ones, companies today compete on their ability to successfully meet customer demands. Having access to material status and flow through all aspects of the supply chain is critical for delivering a superior customer experience. Companies need to know what suppliers are shipping, what product is in process, what finished goods are at the manufacturing facilities, as well as what is available to ship at the warehouse.

Join Lilly Software to find out how its customers have been able to satisfy a 200-300 percent growth in demand, while reducing back orders through true supply chain visibility. Sign up today!



IDII News - New Website Features


Keep Learning - Free Books - Educational White Papers - Books - Suggest A White Paper

Technology & Software Product News

  • Benetton, Gillette, and others have announced major RFID undertakings. Bennetton is going to utilize 15 million RFID tages. Did this surprise any of us? It was expected and the RFID momentum continues to move forward rapidly..

  • Demantra Introduces Demantra Spectrum® for a Collaborative and Fully Integrated
    Demand-Driven Supply Chain. Demantra Spectrum® combines a Marketing Planning and Analytics solution to increase revenue, with Demand Management and Inventory Planning and Optimization solutions to reduce costs. The new version of the suite addresses - sales and operations planning (S&OP), vendor managed inventory (VMI), and collaborative planning, forecasting and replenishment (CPFR®), in addition to other customer-facing programs.

    Promotion Effectiveness (the newest component of the Marketing Planning and Analytics solution), which raises the bar in terms of providing analytic capabilities to measure the impact of trade promotions. Promotion Effectiveness is expected to help businesses increase returns on marketing spend by helping companies measure the net lift of promotions by quantifying the cannibalization effect caused by cross brand or channel switching and pantry loading. It ensures that promotion decisions are integrated with the supply chain’s capacity and constraints, allowing the entire chain to have visibility into promotions and production plans. Other new features include: Space constraint profit optimization: The Demantra suite helps manufacturers calculate what should be shipped, packaged and shelf-stocked based upon the most profitable mix of product available in situations where space, volume or credit is being constrained.

  • Radcliffe (WMS) Acquires KEF Technologies. Fred Radcliffe, President of Radcliffe, says “We plan to utilize the project management expertise of KEF’s consultants to improve the overall project management of our own supply chain and SAP implementation projects, while at the same time aggressively targeting KEF’s current verticals to expand our market share in project management.”

    KEF Technologies, a Microsoft Project Partner and Microsoft Certified Partner, currently serves the financial services, insurance, manufacturing, pharmaceutical, technology, government and health care sectors. These industries are a compelling complement to Radcliffe’s already strong presence in the food, beverage, consumer and industrial products markets.


  • Retek (ERP, Retail) Introduces Integrated Store Operations Solution.

  • Rick Duris Newsletter #18 at http://www.rickdurisunplugged.com has a good point of criticizing Gartner. A good number of well known "research" firms have become extremely philosophical. See his article for some validation points.


Quotes to Ponder - List of Quotes to Ponder from prior issues.

  • Be slow in choosing a friend, but slower in changing him.
    - Scottish Proverb
Scripture to Ponder - List of Scriptures to Ponder from prior issues.
  • "Rulers are not a cause of fear for good behavior, but for evil. Do you want to have no fear of authority? Do what is good, and you will have praise from the same."
    - Romans 13:3
Websites to Check Out

Online Book Catalog - Intuitive Categories

Books on E-Commerce, Shipping, Warehousing, Distribution, Operations, WMS, ERP, MRP, CRM, Supply Chain, Customer Service, Logistics, Facility Layout & Design
, Metrics & Measurements. Software Providers SAP, Peoplesoft.

IT & Project Management Books: Software Project Management - IT Management - Software Testing - RFP Development - Proposal Writing.

New ERP Book

ERP Optimization: Using Your Existing System to Support Profitable E-Business Initiatives

Order From
Amazon


New Software Directory - October 2002 -

"Warehouse & Logistics Software Directory"


Order From
Amazon
or IDII

Manufacturing
IT Project Management: On Track from Start to Finish


Order From
Amazon


SAP & Supply Chain
"Supply Chain Management
Based on SAP Systems
"


Order From
Amazon

Searching for a Warehouse Management System? This answers the "Who? What? and How?" questions and Saves Time!
"ADVANCED WMS RFI Search Bundle"
Available from IDII only
Obal, Philip
Advanced Version is available only from IDII

Valuable Future Events - List Your Event or Convention

IWLA Annual Conference - March 23 - 26, 2003. Miami Beach, FL at the Eden Roc, a Renaissance Resort and Spa. For more information see http://www.iwla.com

RedShift, RedPrairie's User Conference - April 2-4, 2003 at the Scottsdale Plaza Resort in Scottsdale, AZ. Learn how you can achieve improved logistics results within your company and your extended supply chain at this event. RedShift will be packed with useful industry information, RedPrairie solution updates and plenty of time for networking and fun. For more information or to register, visit www.redprairie.com

National Conference on Operations & Fulfillment (NCOF) - April 13 - 16, 2003 - Orlando, FL. The Walt Disney World Dolphin Hotel, Exhibits: April 14 and 15 The Conference Exclusively for Direct-to-Customer Operations and Fulfillment Management.

Distribution/Computer EXPO 2003 - May 20 - 22, 2003 - Navy Pier - Chicago, IL. The largest Exposition for logistics and supply chain technology including; distribution, transportation, and warehousing. Held in conjunction is the D/C EXPO seminars focusing on the latest trends and advances in logistics and supply chain technologies. Visit our website at www.logistar.com or call our toll free number - 800-338-4112.

Material Handling & Logistics Conference - Sep 21 - 24, 2003 - Grand Summit Resort - Park City, Utah. Sponsored by HK Systems and iRista. A gathering of material handling and supply chain software industry experts and users. For more information, visit our website at www.hksystems.com.

 

Proposal Development
(Responding to a RFP, RFI, or RFQ)
 
On A Personal Note:
 
 


Valuable Future Events - Event Calendar is online!

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