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— February 28, 2006

Execution Technology

The Market for European Warehousing Software Is Going Global
Big changes are afoot in the European market for warehouse management systems (WMS) software. According to a new report from Capgemini B.V. in the Netherlands, what has traditionally been a local market is increasingly becoming international in scope. At the same time, individually tailored systems are giving way to packaged software. In Spain, for example, companies appear to prefer doing business with local vendors, largely because of cost. But a small group of growing providers is starting to muscle in throughout Europe, exerting their strongest influence in the United Kingdom, Switzerland, Austria, Germany and the Benelux countries. Some of these global vendors hail from North America and have been steadily picking up market share through mergers and acquisitions, such as the marriages of RedPrairie and LIS, and SSA and EXE. Others, such as Manhattan Associates, have carved out space in Europe through geographical and organic growth.
Further consolidation of Europe's WMS market is in the offing, Capgemini says. The biggest players will continue to strengthen their market positions while expanding in central and Eastern European countries as well. Companies with an international presence will opt for international partners, who can offer coherent systems that operate easily across borders. Smaller suppliers will be left to focus on niche portions of the WMS market, or to compete through price on a local basis.
Meanwhile, keep your eye on those ever-present vendors of enterprise resource planning (ERP) software. The biggest are continuing to develop their own WMS packages, striking at the “best-of-breed” philosophy that allows for niche vendors to exist alongside the enterprise giants. ERP providers are attracting lots of market attention on the WMS side, Capgemini says, “and have grown market share relatively faster than others.” Their broad customer base and well-established infrastructure provide effective tools for competing with smaller vendors of discrete applications. “The market share of the ERP providers is likely to continue its growth,” Capgemini says.
Request report: ernest.van.klaarbergen@capgemini.com
http://www.capgemini.com

Republic Plastics Switches Over to Web-Native TMS Package
Republic Plastics has overhauled its transportation-management function through the acquisition of a Web-native software package from LeanLogistics, Inc. Headquartered in McQueeney, TX, Republic is a mid-sized manufacturer of disposable tableware, including private-label plates, bowls, saucers and lunch trays. The products are sold by some of the nation's largest retailers, including Wal-Mart Stores, Kroger and Winn-Dixie. With shipping volumes projected to triple over the next three years, the company needed a better view of shipment status. LeanLogistics' On-Demand TMS application allows authorized staff, carriers and customers to view the transportation process directly, eliminating the need to contact Republic's transportation department first. On-Demand TMS is designed to support collaboration among trading partners, monitor carrier performance, automate procurement and settlement, and optimize shipping processes. To get the system up and running quickly, Republic took advantage of LeanLogistics' Accelerated Benefit program, under which it was allowed to use the software for up to 60 days with minimal risk and obligation. Following expiration of the trial period, Republic opted to continue with the system, with plans to add such features as settlement and volume allocation.
http://www.leanlogistics.com

Freight-Payment Company Acquires a New Messaging Platform
Williams & Associates, Inc., a transportation-consulting and freight-payment firm based in Bloomington, Minn., has adopted a new software platform for its logistics messaging and connectivity services requirements. The company chose the Global Logistics Network (GLN) of the Descartes Systems Group, Inc. More than 1,400 North American motor carriers are already hooked up to the GLN, which promises quick access to freight bills and other transportation-related messages. The end result, Descartes claims, is higher-quality audit and payment services for Williams' shipper customers. The two companies have a relationship dating back 14 years. A. Gil Williams, president of Williams & Associates, said the firm selected Descartes for the additional functionality because of the vendor's extensive links to the transportation and logistics community. Williams needed the ability to exchange electronic logistics documents with carriers, regardless of their size or level of technological sophistication. Founded in 1921, Williams is a privately held company offering pre- and post-audit services, as well as freight-invoice payment, to shippers and carriers through both paper reports and Web-based tools. The firm also provides software programs for rating all modes of transportation, and ranking carrier costs.
http://www.descartes.com/

Carousels Help London Drugs to Boost Warehouse Productivity
London Drugs, the Canadian pharmaceutical retailer, recently installed new equipment at its distribution service center (DSC) in suburban Vancouver, B.C. The result was a major increase in warehouse productivity. With headquarters in Richmond, B.C., London Drugs operates 63 stores across Alberta, Saskatchewan, Manitoba and British Columbia. It was founded in Vancouver in 1945. At its single distribution center, London Drugs had been picking product from shelving and flow racks into totes on carts, a system that eventually became too time-consulting, labor-intensive and mistake-prone. With its store network growing at a rapid rate, the retailer was running out of warehouse space, racking up delivery problems and incurring additional costs from repacking split-case quantities of merchandise from 8,000 product lines residing at the DSC. To fix the problem, London Drugs purchased a split-case picking system from Remstar International, Inc. The equipment includes 24 horizontal carousels which provide high-density storage, as well as greater accuracy in split-case picking. The carousel system is surrounded by flow racks and shelving for reserve product, to support replenishment and storage of full-case quantities. An average of 510 SKUs are picked at each workstation each hour, according to Remstar. The number of carousels at each workstation can be dynamically adjusted to meet current workflow requirements, and changes in seasonal demand. The new system allowed the DSC to assume distribution of an additional 4,000 SKUs of merchandise that had previously been delivered by suppliers directly to retail outlets. London Drugs was able to double the warehouse's capacity for split-case orders while quadrupling work productivity, Remstar said.
http://www.remstar.com/

Oracle Puts Its Name on Former G-Log Transport Software
Oracle has integrated into its product offerings the transportation-management system (TMS) software package that it acquired through the purchase of G-Log last September. The application is now known as Oracle Transportation Management. According to Oracle, the development signals the vendor's continued support for G-Log's multi-industry customer base, including logistics service providers and Fortune 1000 companies such as DuPont. Building on G-Log's Global Command and Control Center (GC3) software, Oracle Transportation Management will provide a broad range of services, including optimization, order entry, procurement, supply-chain event management and visibility, track and trace, freight payment and historical analysis. The newly named tool can be purchased as a standalone product. Oracle said it plans to extend the offering's integration capabilities through the use of its BPEL Process Manager, a component of Oracle Fusion Middleware. BPEL Process Manager is intended to help customers implement the products quickly. Oracle Transportation Management supports all domestic and international transportation, including inbound and outbound, from point-to-point to multimodal, multi-leg and cross-docking operations. Specific business rules and logic can be applied in conjunction with algorithms and engines designed to optimize shipments based on cost, service level and asset utilization.
http://www.oracle.com/

Smaller Shippers Get New Software Shipping Tool From DHL
EasyShip Professional is the name of new shipping software from DHL, designed for use by small and medium-sized business shippers. The new tool automates the entire shipping process for customers that prefer to use their own computer hardware, DHL said. The standalone application can be installed on a PC to process shipments offline, without the need for a constant internet connection to DHL servers. Features of EasyShip Professional include easy storage and retrieval of address information, connectivity options to interface with the user's computer system for import/export shipments and address data, rating and service estimates, tracking of shipments by waybill number or customer reference number, sending of automated e-mail notifications to customers at the time of shipment, enhanced reporting for viewing and printing of summary and detailed activity reports, and round-the-clock technical support. The new software provides batch integration via data import/export utilities and real-time integration through DHL's DB Connect utility.
http://www.dhl-usa.com/

JPMorgan Chase Vastera Updates Global Trade Management App
The global trade management software suite of JPMorgan Chase Vastera now includes new versions of three key applications: TradeSphere Exporter 8.1, TradeSphere Importer 3.5, and TradeSphere Restricted Party Screening 2.4. Taken as a whole, the updated suite of Web-based software provides enhanced international shipping and trade compliance functionality, the vendor said. TradeSphere is JPMorgan Chase Vastera's flagship suite for the automation and support of critical global trade functions. Components include automated shipment documentation, export and import compliance, customs entry filing and restricted party screening. Version 8.1 of Exporter offers enhanced export management and compliance capabilities. The all-Java version includes several enhancements in the areas of restricted party screening, export determination and resolution, invoice consolidation, license management and content logging. Country support has been enhanced for China, India and Singapore. Importer 3.5 provides entry-management capabilities before, during and after the filing process. New functionality includes tools for post-entry management, to help with post-entry filings and liquidation processing. Restricted Party Screening 2.4 offers screening technology and multi-list management to prevent illegal domestic and international transactions.
JPMorgan Chase acquired Vastera in early 2005.
http://www.jpmorganchase.com/vastera

Robocom Mergers With Radcliffe Following Purchase by Avantce
Robocom Systems International has merged with Radcliffe Inc. Both are vendors of supply-chain management software. Robocom's specialty is in systems for managing warehouses and distribution centers. Radcliffe is a vendor of applications for the third-party logistics, food, beverage, consumer and industrial product markets. The newly merged company will continue to operate under the name of Robocom Systems International, with double the resources and a broader array of supply-chain execution software and services, the principals said. Robocom was acquired by Avantce Software in October, 2005. At the time, the parent announced its intention to make additional investments in the supply-chain software industry. Robocom will now offer products to support engineered labor standards, voice-recognition systems, a Web store for order-taking, a transportation management system, and radio frequency identification technology. Robocom was formed in 1982; its flagship product for warehouse management is Robocom's Inventory Management System (RIMS). Avantce Software is a private investment company focused on the information technology sector.
http://www.robocom.com/

RedPrairie Boosts Global Presence in MARC Global Acquisition
RedPrairie Corp. has acquired MARC Global Holdings, Inc., a former competitor in the business of supply-chain execution software. The combined companies, operating under the RedPrairie name, will have an expanded customer list and deeper functionality across key verticals and geographical regions, the companies said. According to RedPrairie company leader John Jazwiec, the two companies operate from similar technology and software platforms. In addition to its flagship warehouse management system (WMS) software, the vendor will continue to offer an Extended Supply Chain Execution service, providing end-to-end allocation of resources. A business intelligence analytics engine gives customers interactive data on a real-time basis. Also included in the RedPrairie product menu are build-to-order capabilities for the automotive industry, home-delivery technology for grocery and perishable-goods retailers, and duty-management services for the United Kingdom and Europe.
http://www.redprairie.com/


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