Manugistics Expands Logistics Offering

Acquires Digital Freight's e-marketplace for transportation and logistics procurement

Rockville, MD  May 29, 2002  Manugistics Group this week beefed up its logistics and transportation offering with the acquisition of an e-marketplace for transportation and logistics procurement.

Manugistics said it had acquired privately held Digital Freight, a Lexington, Ky.-based provider of collaborative logistics solutions that facilitate online, real-time bids for global transportation contracts.

Manugistics' Global Logistics Management Solution will now offer buyers and sellers of transportation services an online marketplace to automate the task of requesting and processing competitive bids for transportation contracts. The software company said the solution can help shippers and carriers reduce the resources required to manage their complex business operations.

In a statement, Rich Bergmann, Manugistics' president, said: "By streamlining and optimizing logistics sourcing through closer, more timely collaboration with carriers, Manugistics is helping shippers manage their operations more effectively. The collaborative solutions we gain through this acquisition are designed to help reduce contract execution time from months to days, which can result in reducing transportation rates by as much as 30 percent."

Adrian Gonzalez, senior analyst at consultancy ARC Advisory Group, agreed that shipping is a ripe area for finding new efficiencies. "Transportation costs in the United States approach $600 billion annually, and nearly 80 percent of all shipments are moved under contract," Gonzales said. "There are many companies, however, that still rely on manual processes to manage their logistics sourcing process, despite the quick [return on investment] and benefits associated with transportation procurement solutions. This acquisition, therefore, enhances the value proposition of Manugistics' logistics management solution and allows customers to manage their procurement engagements more efficiently."

Digital Freight's e-marketplace solution has facilitated over $1.9 billion in transactions across more than 1,800 carriers and 38 shippers, according to Manugistics. Digital Freight's clients include such companies as Crown Cork & Seal, Frito-Lay, Honeywell International, Safeway and Sonoco.