Manugistics Goes after Indirects

Will resell Clarus' procurement and settlement solutions for indirect materials

Tempe, AZ  July 26, 2001  Supply chain software provider Manugistics announced this week that it will resell an indirect materials e-procurement and settlements solution from Clarus Corp., extending Manugistic's reach into the indirect materials side of purcahsing.

The two companies' new deal comes on the heels of Manugistics' announcement last week of the latest iteration of its supply chain software suite, adding supplier relationship management and pricing and revenue optimization solutions to the provider's traditional supply chain optimization software.

Now Manugistics is focusing on indirect materials with the Clarus relationship. "Our alliance with Clarus enhances Manugistics ability to provide our customers with best-of-breed solutions designed to help reduce costs associated not only with the procurement of direct, but also indirect materials," said Greg Owens, Manugistics chairman and CEO.

Steve Jefferey, chairman, CEO and president of Clarus, meanwhile, noted the deal would open up "a set of entirely new market segments for Clarus' procurement and settlement platforms."

With its string of recent announcements and alliances, Manugistics has its work cut out for it making its suite of solutions work together in harmony, according to AMR Research. AMR analyst Jennifer Kemmeter, in a research note prepared with fellow researchers Randy Weston and Bob Ferrari following Manugistics' user conference last week, wrote: "Manugistics is in a very good position, but it still has the daunting job of integrating all of these pieces together. Many of the parts are from Manugistics' recent acquisitions, and getting them into the mix is always a difficult job."

Still, AMR was bullish on Manugistics' prospects vis-à-vis it rivals in the supply chain solutions market. "Time and momentum are on Manugistics' side," AMR wrote, adding that the solution provider's new strategy has made it better equipped to go after smaller deals.