PeopleSoft Touts SCM Momentum

Points to Q3 customer wins for supply chain management apps in face of "nightmare" 2002 software market

Pleasanton, CA  November 21, 2002  Enterprise software überprovider PeopleSoft this week touted recent successes for its supply chain management (SCM) solutions, pointing to third quarter customer wins in a variety of sectors despite an anemic software market this year.

The solution provider said that more than 90 organizations had licensed PeopleSoft SCM in the third quarter and more than 60 customers had deployed the solutions.

The customer wins ranged from the universities of California and Florida, Cedars Sinai Health System and the state of Oklahoma to Safeway Stores, Commonwealth Bank of Australia and Pernod Ricard.

"The year 2002 has been a nightmare for the supply chain technology market," said Tim Minahan, vice president of supply chain research at technology consultancy Aberdeen Group. "PeopleSoft is one SCM application supplier that has been able to buck that trend. While the SCM market was sleeping, PeopleSoft moved to center stage, investing heavily in research and development for its SCM products, including Supplier Relationship Management (SRM)."

Customers signing up for the provider's SRM solution include PETCO Animal Supplies, a pet store chain with 600-plus outlets in 42 states. The company licensed PeopleSoft solutions to manage its procure-to-pay cycle. The solutions provide PETCO with a single, Web-based, spend-management solution that creates purchase orders and reusable purchase order templates. In addition, PETCO can use workflow rules to create purchasing checks and balances, and build consistent reports on supplier metrics to improve negotiation.

Russ Stover, director of expense management and special projects for PETCO, predicted that the PeopleSoft solutions would help the company reduce cycle times and cut costs by consolidating purchase orders and sourcing more effectively.

PeopleSoft overall saw revenues and profits fall in the third quarter compared to the year-ago period, but the company still reported profits of $44.6 million for the quarter  nothing to sneeze at given the pressure on software spending budgets this year.