Through 2007 and early 2008, the market for supply chain planning (SCP) technology enjoyed a healthy period of growth. Through 2007, the SCP global market saw increases over 2006 of 19% (the best year's growth since the beginning of the decade. SCP spending now represents nearly 40% of all supply chain management (SCM) spending — the biggest sector of SCM. Prior to the recent economic downturn, Gartner was projecting approximately 11% compound annual growth rate (CAGR) through 2012, based on companies' needs to drive more efficiency and, in some cases, more effectiveness out of their supply chains. With the impact of the downturn, we are currently forecasting a 7% CAGR to 2013 for SCP technology, which illustrates the importance of SCP technology to support supply chain efficiency.

Some ERP vendors (for example, Oracle and SAP) have made significant investments in their SCP applications and provide solid foundations for SCP process automation initiatives, as separate suites to their core ERP offerings. Some best-of-breed vendors have evolved to support SCP from a more-integrated perspective, and have recognized that a sizable proportion of the market is looking for "good enough" process SCP automation functionality, with an easy-to-deploy and easy-to-use framework that will support fast and targeted return on investment (for example, Logility, OM Partners and JDA Software). Often, for SCP process automation implementations to work and be successful, the user organization needs to find a way to quickly accept and adopt the necessary business model changes, rather than customize the SCP solution to meet its exact process needs. Typically, the deployment of the software is not the rate-determining step alone; however, unusual requirements and/or endless changes will take longer.

Other best-of-breed companies (for example, AspenTech, i2 Technologies and Quintiq) are evolving into what Gartner calls "SCM innovation partners" — vendors focused on providing innovative SCP solutions for companies looking for competitive differentiation from their supply chains in complex supply chain environments. Some of these vendors (for example AspenTech and Quintiq) are aiming to satisfy both aspects of the market (automation and innovation). This is a tall order and, as yet, we haven't seen any vendor do this successfully, because the business models, strategies and technologies required are so different for the two extremes.

The SCM innovation partners have focused heavily on supporting SCP process innovation. Some vendors that have traditional strengths in SCP innovation are rated as Caution in this SCP process automation research, while they continue to provide very good SCP process innovation solutions and are strongly growing companies. Although they are active in the process automation market, they do not offer the strength of SCP process automation solutions for a higher rating in this MarketScope to date. SCP process innovation is not a single market, because each organization will derive its source of competitive advantage and, hence, innovation along different lines. We anticipate that some of these vendors will improve their process automation credentials during the next few years. We also note that some ERP vendors do not have sufficient depth in SCP process automation capabilities to warrant a higher rating, but may provide a suitable SCP process automation adjunct to their ERP solutions (for example, IFS, Lawson, Epicor and IBS). For users of these ERP solutions, the incumbent SCP capability may be enough to get started in SCP process automation, or the value proposition may come from tight integration through a single ERP data model. However, enterprises need to understand that these ERP solutions are vertically focused and should only be considered for the relevant target markets.

Gartner has observed a bifurcation in the SCP market for the past several years. Increasingly, we have seen user requirements polarize toward the ends of a continuum spanning automation to innovation, with SCP process automation requirements for different industries becoming substantially similar.

In "Supply Chain Planning Market Is Bifurcating Into Process Automation and Process Innovation Markets," we highlighted the distinction between these two sets of requirements.

SCP process innovation is a series of programs focused on changing how the enterprise does SCP. It focuses on:

• New ways of doing SCP (for example, evolving from a push-based to a pull-based or hybrid response model), and where a best practice does not currently exist
• Effectiveness, rather than only efficiency (for example, developing new collaborative processes with trading partners)
• Disruptive, revolutionary approaches, as opposed to evolutionary cost management approaches
• The supply chain as a potential source of competitive advantage for the company

SCP process automation is a series of programs focused on achieving best practice in SCP. It focuses on:

• Incremental improvements to the current way of doing SCP
• Integration and automation of SCP processes
• Process efficiency, rather than effectiveness
• Evolutionary cost management and risk-averse programs
• Industry competitive parity, rather than true competitive advantage

This MarketScope focuses on the market for solutions that support SCP process automation. To that end, we evaluated the vendors on the basis of how their capability supports only SCP process automation. Called out separately in this research is where vendors have specific capabilities to support SCP process innovation. However, the vendor rating does not, in any way, relate to a vendor's capability to support SCP for process innovation or the vendor's viability, unless explicitly identified.

Some vendors that are active in the SCP market, with notable SCP for process automation functionality, did not meet all the inclusion criteria. Therefore, they are not rated in this MarketScope, but deserved "honorable mention" (see Note 1).

Gartner defines an SCP suite as a multiproduct SCP software application that includes at least four of the following key functional areas: demand planning, inventory planning, replenishment planning, available to promise (ATP), manufacturing planning and scheduling, and collaborative planning. SCP for process automation denotes part of the market that uses SCP technology for best practices that streamline and make more efficient the SCP business processes. This differs from SCP for process innovation, which seeks to change or evolve specific SCP business processes for unique competitive advantages.

We define the key criteria for SCP for process automation from two perspectives:

• First, from the perspective of the technology provider:
  • SCP process automation solutions tend to be integrated suites (single, unified data and process model) composed of demand, inventory, replenishment, and manufacturing planning and production scheduling.
  • SCP process automation supports standardized, repeatable and formalized business processes.
  • Functionality is mainly targeted at nondifferentiated business processes, but of sufficient depth to support best practices.
  • Increasingly, there will be common attributes of complexity and capability across different vertical markets, with minimal industry specialization.
• Second, from the perspective of the end-user organization:
  • Established business processes in the enterprise are integrated and automated; new innovating processes are not developed.
  • Common SCP practices are implemented, striving for standardized, often packed or off-the-shelf, best practices.
  • Process-automation-focused organizations do not typically view supply chain business processes as a primary source of meaningful competitive advantage.
  • Benchmarking and performance management are prevalent, to help institutionalize best practices.
  • Supply chain improvement activities are in the context of an evolutionary development model, as opposed to a revolutionary approach. Six Sigma in the supply chain may be a common approach to drive the evolutionary development.
  • SCP process automation projects will seek clear, fast and demonstrable returns (less than 12 months payback) in a more risk-averse SCP development environment.
  • SCP process automation tends to favor a single-vendor sourcing model, rather than best-of-breed sourcing (for specialized or differentiated functionality), with tight integration with the transaction systems.

The key value propositions for end users of SCP process-automation-focused implementations are:

• Reducing costs versus customer service improvements
• Improving process efficiency and performance
• Providing a capability foundation for further supply chain development activities, which may include more process innovation capabilities
• Adapting the company's business processes to meet the solution, rather than tuning the solution to meet 100% of the company's processes

The bottom line is that SCP for process automation supports the necessary or sufficient SCM processes of the business at the lowest operating cost from the vendor's perspective (cost to build, deploy and support), as well as from the end user's perspective (for example, cost to deploy, sustain and staff).

The inclusion criteria for this SCP process automation market analysis are:

• Annual total revenue of $20 million, at the minimum
• Annual license and maintenance revenue (of SCP solutions) of at least $10 million
• Global coverage, defined as at least 5% of SCP license revenue reported outside the headquarter region (the Americas, Europe/Middle East and Asia/Pacific)
• Presence in multiple vertical industries
• SCP functionality presence should cover four of the six key functional areas for SCP for process automation:
  • Demand planning
  • Inventory planning
  • Replenishment planning
  • ATP
  • Manufacturing planning and scheduling
  • Collaborative planning (mainly enterprise-centric or internally focused)

If a vendor doesn't match the above criteria, but Gartner receives a reasonable number of end-user client inquiries for the vendor SCP solutions, then the vendor also is considered for inclusion in this market analysis. For a full description of the key functionality characteristics of each of these six areas, see "Supply Chain Planning Market: Process Automation Characteristics."

Overall Market Rating: Positive

The market for SCP process automation capabilities is rated a Positive, because Gartner still sees good, solid growth for SCP applications during the next five years (7% CAGR; see "Forecast: Enterprise Software Markets, Worldwide, 2008-2013, 1Q09, Update"). Although this is a composite growth rate for SCP for process automation and innovation applications, the automation part is the biggest slice (around 80%). The functionality required to support SCP for process automation is robust, mature and increasingly commoditized and, as such, will contribute to shorter-term business objectives, as companies look to reduce costs and drive more efficiency in their supply chains in the current economic climate. More than 70% of end-user companies seeking SCP solutions are looking predominantly for SCP process automation solutions. The market is mature and characterized by a highly competitive vendor landscape, near commoditized solutions, deflationary pricing pressures, and solid and quick return on investment. Vendors providing capable SCP process automation are able to provide integrated functionality across most of the key functional areas that an end-user organization needs to implement robust, SCP business processes.

Globalization challenges also are pushing more companies to examine how they run their supply chains and what appropriate investments in SCP technology might be. The increase in the volatility of an enterprise's supply chain environment, and general poor economic conditions for some companies, may well change the level and direction of SCP spending during the next 12 to 24 months. We expect SCP spending to remain robust for 2009, although growth will be lower. Additionally, companies will be switching some of their investments into performance management, optimization and modeling tools to help them manage their way through the turmoil of the next few quarters. This means that if end users' incumbent SCP vendors cannot support these additional functionality requirements, then the users may consider sourcing from other vendors.

Several key factors will maintain the momentum of this market during the next few years:

• Short-term needs of users to reduce operational and supply chain costs, in terms of trade, inventory and resource utilization, while needing to optimize and streamline their supply bases.
• Globalization efforts by end-user organizations requiring more-robust SCP solutions across more-complex networks.
• ERP vendor SCP solutions becoming more sophisticated.
• End-user focus on the efficiency of supply chain operations.
• Product development efforts in assimilating what was innovative capability into integrated SCP solutions.
• End users building an SCP process foundation as a means to leverage more-innovative technology as their supply chain strategies mature and evolve.

The majority of end users deploying, or looking to deploy, SCP applications are using SCP process automation solutions; this makes up approximately 80% of the total SCP market. These users are characterized by looking for repeatable, even packaged, best practices and supply chain efficiency. They are not as interested in process innovation aimed at creating differentiating business processes. See Table 1 for the evaluation criteria for this MarketScope.

AspenTech is a U.S.-based software vendor. It has a range of solutions focused on the more complex process industries, including solutions for process control, manufacturing execution, and planning and scheduling. The SCP product set is known as aspenONE Planning & Scheduling, and is part of the aspenONE suite. Target vertical industries include chemicals, specialty chemicals, polymers, olefins, petroleum refining and marketing, process consumer packaged goods (CPG) and pharmaceuticals, and AspenTech is a strong candidate in respect to complex SCP problems associated with these markets. aspenONE has a broad SCP functionality footprint that meets most of the SCP process automation functionality criteria, including demand planning, supply and inventory planning, and production scheduling, and some limited collaborative planning capability, which can be sold as stand-alone products, as well as part of the SCP suite.

The current release of aspenONE Planning & Scheduling is v.7, which became available in September 2008; AspenTech claims to have approximately 500 customers for SCP modules of the aspenONE solution set. AspenTech focuses on the process industries, which often require a higher degree of SCP process innovation, or what would be innovative in other, less-complex industries. To support this requirement for more-complex SCP support, AspenTech has traditionally provided a more customizable set of components, and users had to work to "configure" the solutions they required for their specific environments. However, AspenTech is aiming to automate some of this innovation, while developing its functionality for complex process supply chains. It claims to be developing best practices, workflows, templates and packaged standard implementations aimed at improving implementation timelines and, therefore, time to benefit. As yet, Gartner has seen few examples of these packaged solutions in use, and could only find public references to two implementations during 2008.

Process manufacturing users that are looking for deep and innovative SCP capabilities should always consider AspenTech, because this is the vendor's "sweet spot." However, SCP users that are looking for process automation should evaluate AspenTech carefully and seek detailed proof of concepts, references and pilots before purchasing, to help build confidence that the best-practice process templates will support smoother, less-complex implementations.

We gave AspenTech a Caution rating. The vendor is attempting to build out a process automation focus from its heritage of process innovation; however, references do not yet adequately demonstrate that it has achieved sufficient success with SCP process automation implementations. The vendor has narrowly focused on the complex process industry with innovative and highly configurable solutions, and users who need this level of capability should evaluate AspenTech.

Gartner research has concluded that AspenTech's solutions qualify as part of this market. AspenTech declined to participate in the research process for this MarketScope. Secondary research sources and Gartner client interactions have been used to supplement existing information on AspenTech.

Rating: Caution

Barloworld Optimus is part of the Barloworld group of companies (covering areas such as industrial equipment and distribution, vehicle solutions and logistic services), which is headquartered in South Africa. Barloworld Optimus is the SCP division, headquartered in the U.K. and with operations in the U.S., United Arab Emirates and South Africa (it also has partners in France, Holland and Australia). The SCP product set is known as Optimiza and offers a competent SCP process automation footprint. Inventory Optimiza is the replenishment planning and inventory planning product, combining basic demand forecasting with replenishment capability and some single-node inventory optimization. For companies requiring more-advanced demand planning capability (for example, hierarchies and aggregate forecasts and some basic S&OP support), Optimiza Demand Planner adds deeper demand-planning features. Both products have ForecastPro embedded to provide the forecasting algorithms.

Barloworld Optimus claims to have more than 370 customers for the Optimiza products, and is active in industries such as automotive, industrial, and wholesale and distribution. The Optimiza functionality is focused on finished goods, and parts inventory management and distribution. There is no manufacturing planning or scheduling capability. Collaborative capability links the demand planning to a spreadsheet front end for forecast modifications and approvals. The SCP functionality is robust, but not complex. Optimiza is aimed at companies that are interested in SCP process automation, but need to start at a basic level with simple-to-use tools. In the Optimiza product, there are no constraint-based planning or optimization capabilities, for example. Barloworld Optimus launched a new product, CINO (Combined Inventory and Network Optimization) in 2008; CINO incorporates more optimization of constrained resources and inventory in a multiechelon distribution network. To date, Barloworld Optimus has only offered the CINO product as part of a service engagement, while it develops the skill base to support the product in the market. Barloworld Optimus has developed good training, education and services to support the implementation of its solutions, which are valued by its customers.

We gave Barloworld Optimus a Promising rating for SCP process automation. Its capability is improving across several criteria, but it does not have a full functional footprint.

Rating: Promising

Epicor is a U.S.-based, global ERP vendor focused on the midmarket. Epicor focuses on vertical markets, such as manufacturing and distribution, retail and hospitality, and professional and financial services, through a portfolio of ERP products. The Vantage ERP solution, Epicor's manufacturing and distribution-focused ERP solution, contains its SCP functionality. The release evaluated in this research is Vantage 8.03.400, which became generally available in September 2007. Epicor has since released Epicor 9, a more global product with improved functionality, particularly in the financial area. Vantage users can expect an upgrade to Epicor 9.

Epicor has 60 offices globally, with a presence in all the major regions of the world. The Vantage ERP product is .NET-based (current release is the third-generation .NET product), and the SCP functionality is an inherent part of the Vantage solution. SCP process automation functionality includes demand forecasting, inventory management, materials management and scheduling. More-advanced demand forecasting (over the inherent ERP functionality) is available via an agreement with Smart Software to use its SmartForecasts module as an add-on (about 10% of users take up this option). Vantage ERP is sold as an integrated ERP/SCP solution; the SCP solutions are not available separately from the ERP solution. As with some ERP solutions, the Epicor SCP solutions are not functionally deep, but are tightly integrated into the ERP data and process models.

Target vertical markets for Epicor Vantage include light to moderate distribution companies, and discrete and mixed-mode manufacturers in the midmarket, which account for 65% of Epicor revenue. Epicor has a strong background in support of configure-to-order manufacturing environments. One scheduling engine is used to drive the different planning levels in the solution from global multisite planning to finite scheduling. With the tight integration between the planning and transaction processes in Vantage, full ATP checks are available through the bill of material. Also available are various lean manufacturing and Kanban-based production and purchasing strategies.

As with some ERP solutions, the Epicor SCP solutions are not functionally deep, but are tightly integrated into the ERP data and process models. Companies that are using or are prepared to use Epicor ERP solutions, and that require SCP process automation as an inherent part of their ERP deployments, and favor a one-stop shop for business applications, should evaluate the Epicor SCP capability. Additionally, the new .NET architecture supports a flexible, unified user interface (UI) across all the functional modules. Also, having the execution and planning processes closely tied together with the same data and process models has advantages in integration and speed of processing.

We gave Epicor a Caution rating. The SCP solutions are only available as part of the Epicor ERP solution. Although the SCP functionality is reasonably broad, the depth of functionality is relatively light, compared with many other SCP solutions on the market. The value of Epicor SCP solutions is in using them in combination with the ERP solution, and taking advantage of tight integration with the transaction and execution processes.

Rating: Caution

A U.S.-headquartered global SCP vendor, i2 Technologies is one of the SCP specialists supporting mostly SCP process innovation requirements, and is an SCM innovation partner vendor capable of delivering differentiated capabilities for process innovation. It is a leading SCP vendor for delivering a service-oriented architecture (SOA) and has executed on a strong vision for its Agile Business Process Platform. The vendor is bringing to market industry next-practice templates centered on industry-based customer segments. This approach is attractive to customers with complex SCP problems that want an SCP innovation partner, rather than a more-traditional, process-automation-focused, packaged-application vendor. It offers a broad and deep portfolio of individual products that targets various SCP processes (for example, S&OP, demand planning, supply planning, factory planning, inventory strategy optimization and network design), as well as a platform-based SCP capability, if required, to assemble composite SCP applications. The vendor's strength is not in mass-selling packaged SCP applications, but is in using its domain expertise and architecture to assemble differentiated business processes and workflow templates.

Its newest strategy is to leverage its new-generation SCM solutions and technology stack to configure/build/construct/assemble/architect holistic solutions, such as its Sales and Operations Management solution, from individual product components (for example, Demand Planner and Factory Planner). The adoption of business process management, master data management, integration services and spreadsheet integration makes it a highly adaptable architecture, although this inherent flexibility adds implementation, support and deployment complexity. Thus, i2 Technologies is best-suited for sophisticated SCM practitioners with complex supply chain problems that want/need differentiated capabilities. It is not for companies needing commoditized SCP process automation, as they would find i2 Technologies solutions overly complex and difficult to get value from.

We gave i2 Technologies a Caution rating, as SCP process automation is not its focus. Although i2 Technologies has some of the most-capable SCP applications in the market, its current strategy is firmly focused on process innovation.

Rating: Caution

IBS is a global ERP vendor headquartered in Sweden. IBS has more than 5,000 ERP customers and focuses on the midmarket, primarily in industries such as distribution and wholesalers, publishing, light discrete manufacturing and automotive, across Europe, the U.S., the Nordic countries and the Asia/Pacific region. IBS is a significant midmarket ERP player in Europe, but more than one-third of its SCP/ERP deployments are outside Europe. It has offices worldwide, including in the U.S., Australia, South America and China. The current ERP solution is called Enterprise 6.0 and is Report Program Generator (RPG)-based, and became generally available in January 2006. A new Java version is in beta release, and should be generally available sometime in 2009. IBS has SCP modules that cover demand planning, inventory control, S&OP, supply planning and finite production scheduling. IBS does not sell these SCP modules separately from the base ERP solution, because they are run off the single ERP database. IBS claims to have approximately 470 customers using its SCP functionality as part of their ERP deployments.

The IBS SCP solutions are not functionally deep but are tightly integrated into the ERP data and process models. Companies that are using, or are prepared to use, IBS ERP solutions, require SCP process automation as an inherent part of their ERP deployment, and favor a one-stop vendor for business applications should evaluate the IBS SCP capability. By having the execution and planning functionality closely tied together, using the same data models has advantages in terms of process integration and speed of transaction processing. The IBS solutions are also used in some light manufacturing environments (they have some finite scheduling capability), although their sweet spot is in distribution and wholesale, where they demonstrate the ability to handle very high volumes of order lines.

We gave IBS a Caution rating. The SCP solutions are only available as part of the IBS ERP solution. Although the SCP functionality is reasonably broad, the depth of functionality is light, compared with many other SCP solutions on the market. The value, however, is that companies can use IBS SCP solutions in combination with the ERP solution and, thus, can take advantage of tight integration with the transaction and execution processes.

Rating: Caution

IFS is a global, midmarket ERP vendor headquartered in Sweden. IFS has a good customer base of ERP and manufacturing resource planning (MRP) customers, mainly in discrete manufacturing (for example, industrial engineering, automotive and defense industries), and has a strong presence in project-based manufacturing. When IFS customers need SCP for demand and supply planning, the IFS SCP solution is a reasonable process automation solution when used in conjunction with its ERP and MRP installations. Gartner finds that the IFS SCP solutions are rarely implemented without the IFS ERP solution in place; one exception is IFS Demand Planning, which IFS sell as a stand-alone solution. The IFS SCP functionality covers the main requirements for SCP process automation (demand planning, supply and inventory planning, manufacturing planning and scheduling, ATP, and collaboration). However, the level of capability, even at an SCP process automation level, is relatively light (for example, there is no constraint-based replenishment planning, and single-node inventory optimization has only just been addressed, outside of Sweden, in a new product released in 2008). IFS' SCP development is influenced by its current user base, which is predominately midmarket, although IFS has a number of customers in aerospace and defense, and its project-based planning capability is second to none. Traditionally, the midmarket segment has not pushed its vendors on SCP functionality; however, this is changing, and IFS has started to develop more-capable SCP solutions.

IFS is doing some good work across all its applications (including SCP) to improve the user experience. It announced its IFS Enterprise Explorer UI, which is a positive step in incorporating some rich Internet capabilities into the UI. Of particular note is IFS' work in complex, project-based make-to-order applications, where it has added specific capabilities for project-based manufacturing planning. Consider IFS SCP solutions if you are an IFS ERP user and have simple SCP requirements.

We gave IFS a Caution rating. Its SCP products are not seen outside its ERP base, and should be considered only by current IFS ERP users. Although it can check all the functional boxes for SCP process automation, the depth of capability is not deep enough to warrant a higher rating.

Gartner research has concluded that IFS' solutions qualify as part of this market. IFS declined to participate in the research process for this MarketScope. Secondary research sources and Gartner client interactions have been used to supplement existing information on IFS.

Rating: Caution

Infor is a large, U.S.-based, global software vendor that has grown significantly in recent years through numerous acquisitions. Infor has assembled a large, diverse customer base and a broad portfolio of individual solutions targeted at many industries and product lines beyond SCP — including ERP, enterprise asset management, corporate performance management, warehouse management systems and transportation management systems (TMSs). The Infor SCM Demand Planning solution (acquired from Finmatica in 2005) provides demand planning, distribution planning and optimization capability. The SCM Advanced Planning and SCM Advanced Scheduling solutions provide process manufacturing planning and scheduling capability, while the SCM Planner and SCM Scheduler (acquired from SSA Global in 2006) provide discrete manufacturing planning and scheduling capability. SCM SupplyWeb has been added to the product responsibilities of the SCM group at Infor. This solution adds supplier collaboration capabilities. Infor focuses on manufacturers and distributors in food and beverage, consumer goods, pharmaceuticals and specialty chemicals.

The portfolio is focused on process automation, with some strands of process innovation present (for example, the discrete and process scheduling applications, and visibility solutions). Infor SCM Demand Planning, the distribution-orientated SCP solution (demand, inventory and replenishment planning), is well-suited to multitier distributors, and for manufacturers where production optimization and complexity are less critical. Infor has built some constraint-based optimization logic into this product (taken from the advanced planning solution) to cater to increasing customer sophistication. Infor Advanced Planner provides a strong and differentiated process manufacturing capability (which can be teamed with the Demand Planning product for finished goods and demand planning) to support food/beverage, consumer goods, chemicals and pharmaceuticals supply optimization. In July 2006, Infor acquired SSA Global and added to its SCP portfolio with the SSA Global scheduling and planning applications, which are discrete-manufacturing-focused. This gives Infor separate discrete and process supply planning solutions. SCP solutions cover demand planning, replenishment planning, manufacturing planning and scheduling. Infor has a supply chain performance management solution that can be used alongside any of the SCP products.

Infor is selling its discrete manufacturing SCP offerings mainly into the Infor ERP installed base, and its distribution and process manufacturing SCP offerings are being sold as point solutions to non-Infor ERP users, as well as to current Infor ERP accounts. All SCP products have Unicode capability, and Infor has been successful in selling its SCP solution across all three major regions. Infor claims approximately 750 customers for its stand-alone (not part of ERP) SCP solutions.

Companies should look to Infor when they have reasonably complex SCP problems focused in specific areas. They should review each module or product as a stand-alone product; there is little leverage among the Infor offerings, which should change when the SOA strategy for integration becomes available toward the end of 2009 for the SCP components.

We gave Infor a Positive rating. Although it is working on its SCM integration strategy across its application portfolio, it can support the functional requirements of SCP process automation in a stand-alone mode and has good geographic coverage. We believe that Infor currently carries at least $4.5 billion in debt, used primarily to fund acquisitions (Infor has indicated that this figure is materially overstated but has not provided additional information). This is a highly leveraged company by enterprise application software vendor standards. Gartner suggests that users bear this in mind in discussions with Infor and seek assurance that it has the wherewithal to execute on the components of its strategy that are relevant to their specific strategic requirements.

Rating: Positive

Inform is a German software vendor that focuses mainly on advanced optimization decision support for planning and near-real-time scheduling with an operational and tactical time horizon. It has several business units marketing its industry-specific solutions. The SCP solutions are called add*ONE Inventory Optimizer, add*ONE Demand Planner, and FELIOS (which supports production scheduling). Since 1995, Inform has accumulated approximately 230 SCP customers across a range of industries, including purchased and manufactured finished goods distribution (for example, electronics and electrical), automotive, building materials and aftermarket, with another 250 customers for its scheduling solution. The add*ONE products provide a focused set of SCP functionality that includes demand planning, supply, network and capacity planning, and inventory planning, and sales and operations planning. FELIOS addresses master production planning and scheduling, but is mainly only sold in countries where German is spoken, although it is also available in French and English, and is sold through a separate division from the add*ONE solutions.

add*ONE Inventory Optimizer is the most commonly deployed SCP solution and functionality includes stock-keeping unit (SKU) level forecasting, replenishment planning, inventory planning, purchase planning and exception management. For companies requiring more-advanced demand planning capability (for example, hierarchies and aggregate forecasts, and some basic S&OP support), add*ONE Demand Planner adds deeper demand-planning features. However, each module has a database, and the databases are synchronized via interfaces. The current release of the add*ONE products is 7.1, which became generally available in March 2009. Inform has also repackaged the add*ONE Inventory Optimizer solution for the midmarket, under release SME 4.0 (there is no SME add*ONE Demand Planner solution). The SME add*ONE Inventory Optimizer solution is a derivative of the main product, with some restrictions on some of the functionality. The SME version has a pricing model targeted at the small or midsize business (SMB) market, and enables users to upgrade to the current add*ONE product when they need access to additional functionality.

There is reasonable depth in the functional areas covered in the add*ONE solutions, and customers report good use of the tool and good support from Inform. However, some functional gaps exist. There is no constraint-based optimization in the planning solution, although network planning is available as an option in the latest release of add*ONE to support multisite planning and replenishment. Rough-cut capacity planning is also available in add*ONE Inventory Optimizer, again as an option to the base functionality. Most of Inform's sales activity are centered in Europe, but Inform has some opportunistic sales in the rest of the world; however, companies need to evaluate Inform's ability to support projects outside Europe, the Middle East and Africa (EMEA). Customers report a high level of satisfaction with the product (it scores very well for ease of use and its clear exception management approach) and support from the vendor.

Companies should consider Inform if they have process automation requirements in manufacturing, purchasing and distribution planning, and inventory planning, and are centered on Europe. The solution provides a clear and simple approach for classifying inventory items based on forecast accuracy. However, companies looking to migrate from process automation to areas of innovation may well have to supplement the product with additional capability from another vendor.

We gave Inform a Promising rating. For the markets and areas it targets, this is a good product; however, for more-extensive SCP process automation deployments, there are functional gaps. The vendor is also European-focused, although it has plans to expand.

Rating: Promising

JDA Software is a U.S.-based global software vendor. In June 2006, JDA Software acquired Manugistics. This acquisition brought together JDA Software's retail solutions with Manugistics' CPG and manufacturing solutions. JDA Software had stated that its long-term goal is to standardize the applications using JDA Enterprise Architecture, which is a technology portfolio based on what was the Manugistics WebWorks platform and is predominately Java Platform, Enterprise Edition (Java EE; see "JDA's Focus 2007 User Conference Updates Its Customers"). The original JDA Software retail products are architected across a collection of technologies, including AS/400, Java EE and .NET, and Manugistics' products are based on Java EE. JDA Software's industry focus for its SCP solutions will be on consumer goods and process manufacturing, distribution/wholesalers, transportation/logistics and retail.

The Manugistics offerings (now known as part of the overall JDA Software solution suite of supply chain planning, execution and optimization) form the basis of the JDA Software SCP product set. The current release is 7.5, which has been generally available since December 2008. JDA Software is working on upgrading the UI for the SCP solutions (TMS, demand and promotions are done), and the new UI will ship with the other solutions through 2009. Full SCP process automation functionality is well-covered, including demand planning, supply and inventory planning and optimization, ATP, manufacturing planning and scheduling, and strong collaboration capability. Additionally, Manugistics had solutions that were more in the process innovation area (for example, inventory policy optimization and demand classification), and JDA Software has developed daily forecasting/allocation capability with its Dynamic Demand Response solution.

Since the Manugistics acquisition, JDA Software has made some tactical developments that moved some E3 replenishment logic into the Manugistics fulfillment solution, as well as some strategic developments, such as the new S&OP solution, which became generally available in December 2008. On the professional service side, some customers remain concerned about the availability and consistency of service resources — something that JDA Software is working on by investing in its service offerings and appointing an overall head of services. The overall direction of providing an integrated SCP environment is sound and supports a strong SCP process automation focus, and users like the SCP solutions.

Companies should consider JDA Software for its SCP process automation needs if they want to adopt a platform-based offering or to complement an initial process automation focus with some process innovation components. Across all its SCP products, JDA Software has approximately 800 customers. Companies in retail or consumer goods manufacturing/distribution or the service industry should consider JDA Software; companies outside these core industry segments should be specific about how JDA Software will support them long term.

We gave JDA Software a Positive rating. Although it is vertically focused on consumer goods manufacturing, distribution and retail, it needs to clarify its product, architecture and technology development plans and improve its professional services. JDA Software offers a full functional footprint and good SCP process automation support.

Rating: Positive

Lawson is a U.S.-based ERP vendor with operations in the U.S., Europe and Asia/Pacific. The Lawson SCP capability falls under the M3 product set, formerly the Movex product portfolio from Intentia. A European-based, ERP vendor with headquarters in Sweden, Intentia was acquired by Lawson in 2006. The target vertical markets for M3 include food and beverage, fashion (apparel, footwear and accessories), wholesale distribution, and equipment service management and rental, although it also sells into manufacturing and asset-intensive companies. The Lawson SCP capability is a blend of capabilities in the ERP solution (for example, basic statistical forecasting, ATP and capable to promise, distribution planning and material planning) and integrated add-on modules that use the M3 data model. These cover areas such as collaborative demand planning, SCP, multisite planning and detailed scheduling. The solutions (in ERP, plus the additional modules) can cover all the SCP process automation functionality areas, including supply planning, demand planning, inventory planning, multisite planning and ATP. Lawson's SCP development has been shaped by its midmarket and industry focus. Although it is making progress, it still lags behind some other vendors in the depth of some SCP functionality. Lawson has been active in developing specific and promising capabilities for its target vertical markets. For example, its Fashion Planner Workbench, Supply Chain Planner, Assortment Replenishment Planner and Stock Build Optimizer are examples of good, capable functionality, although industry-specialized. The Supply Chain Planner module is a capable constraint/optimization solver that supports tactical (longer term), as well as operational (shorter term), planning cycles. It has also launched an M3 Analytics product.

Lawson primarily sells its SCP offerings into its ERP installed base, but has a small number of non-Lawson M3 ERP customers. Lawson has more than 2,100 customers for its M3 ERP solution, and the add-on SCP components have approximately 500 customers. The latest version of M3 is 7.1, which was released in May 2007; a new, rich UI, called SmartOffice, was released in May 2008. For faster implementations, Lawson has been providing templates and methodologies encapsulated in its preconfigured, industry-specific QuickStep programs. Lawson's SCP will be of particular interest to companies in the M3 target markets, and that require SCP process automation and some industry-specific process innovation. Where Lawson lacks functional depth, it has the opportunity to capitalize on the tight integration between the transactional (ERP) processes and the SCP processes. For example, its supply chain order functionality offers potential as a strong postponement strategy support.

Companies should evaluate Lawson's SCP when they are using or considering Lawson M3 ERP, and when their SCP requirements are focused on the vendor's core industries. Outside of its target vertical markets, Lawson has some capable SCP point solutions, but limited options for supporting development to a more-process-innovation-based SCP strategy; companies would need to complement Lawson SCP with another vendor for these innovation requirements. North American customers have been slower to adopt Lawson's SCP due to the smaller market presence of Lawson M3 in that region, although its presence is increasing there. Lawson is building up specialist resources in Europe and the U.S. to support SCP deployments, which is welcome, because Gartner still hears of professional service issues, particularly on the M3 side.

We gave Lawson a Promising rating. It has capable SCP process automation components, but is not normally seen outside the M3 ERP installed base, because the ERP-based capability is often needed in addition to the SCP modules to provide a complete solution. M3 users in Lawson's key vertical markets (for example, fashion, and food and beverage) can leverage promising ERP/SCP solutions and should evaluate Lawson. However, on their own, the Lawson SCP solutions are best-suited for point SCP requirements, and should be evaluated as such. For a full, integrated SCP process automation footprint, the ERP solution and the SCP add-on modules will be required, which offer opportunities in the tight integration between the planning and execution processes.

Rating: Promising

Logility is a U.S.-based SCM vendor. It sells two SCP solutions: Demand Solutions (from the acquisition of Demand Management) is sold mainly via an indirect channel and is targeted at the SMB market. The Tier 1 solution set, Logility Voyager Solutions, is sold direct from Logility and is the subject of this analysis. The current release of Voyager Solutions is 7.6 (released in March 2007), and the vendor is planning a major new release in 2009. Logility has approximately 1,300 customers across the two solution sets. Voyager Solutions covers the key SCP functional areas of demand planning, inventory and replenishment planning, manufacturing planning and scheduling, and ATP. Voyager Solutions has a strong multienterprise collaboration capability to support collaborative demand and supply planning processes, as well as a supply chain performance management solution. Industries (such as discrete, process, retail and distribution) are well provided for by the Logility products' capabilities and a demonstrated ability to support medium- to highly complex SCP environments.

Logility is a small vendor, compared with Oracle and SAP, but has been able to provide adequate geographic coverage for its solutions, with 25% of its revenue coming from outside the U.S. Its focus on helping companies obtain a complete and usable SCP footprint, with an emphasis on fast return on investment, has helped it return a good growth rate in previous years. Customers report a high level of satisfaction with the products (and professional services) where the focus of their supply chain strategies have been oriented toward the process automation domain. Although Logility supports some aspects of process innovation (for example, sales and operations planning, and multienterprise collaboration), areas such as inventory optimization currently need a best-of-breed add-on from an alternative vendor. To close this gap, Logility is planning to launch a multiechelon inventory optimization solution in mid-2009, as part of Voyager Solutions 8.0.

Companies should consider Logility when they require strong SCP process automation with a full functional footprint. Most industry sectors are well-provided for, and Logility can support the SMB and Tier 1 markets through Demand Solutions and Voyager Solutions, respectively. With the Voyager products, moderate-to-complex supply chains are well-supported, from a process automation perspective.

We gave Logility a Strong Positive rating because of the strengths in its functional footprint, customer support, multiple industry support and SCP process automation market understanding.

Rating: Strong Positive

Manhattan Associates is a U.S.-based global software vendor, known predominately for its strength in supply chain execution (SCE) solutions (including warehouse and transportation management). However, Manhattan Associates' planning, forecasting and inventory optimization solutions (added through its acquisition of SCP vendor Evant in 2005) adds strong SCP capability. The focus of the SCP solution set is on consumer goods/wholesale distribution and retail-demand-focused industries. The SCP footprint does not cover all the SCP process automation functionality areas; it is a strong demand, inventory, and distribution or supply planning product. Because Manhattan Associates has focused on finished-goods industries, there has been no need to develop manufacturing planning and scheduling capabilities, and ATP is offered via another application in the Manhattan Associates' portfolio, Distributed Order Management. SCP solutions include Demand Forecasting, Item Planning, Multichannel Planning, Replenishment, and Vendor Managed Inventory, and each can be licensed separately. The current solutions are on Release 2007.2, which became generally available in December 2007. These SCP solutions apply several more-advanced capabilities (for example, demand data cleansing, forecast model blending, automatic parameter tuning, product clustering and inventory segmentation), making the solutions stronger in some aspects of SCP process innovation than in others. Manhattan Associates has enhanced some templates and automatic tuning capabilities to help users digest some of the more-complex capabilities of the products. The products are Java-based. The SCP solutions eventually will be integrated with Manhattan Associates' Supply Chain Process Platform, offering the opportunity for companies to drive convergence of SCP and SCE processes via the Supply Chain Process Platform, which likely will be available in 2009.

Manhattan Associates has more than 100 customers for its SCP products, with the majority in the U.S. Companies should consider Manhattan Associates when they have SCP requirements in distribution/wholesale or retail market. Companies should look to Manhattan Associates when their SCP requirements are mainly process-automation-oriented, but when they plan to add process innovation requirements, particularly for demand planning and distribution planning. If the integration of SCP and SCE is a focus, and companies use Manhattan Associates for their SCE needs, then they should look closely at Manhattan Associates' plans to integrate these solutions on top of its evolving platform.

We gave Manhattan Associates a Promising rating. The vendor has strengths in its product strategy, but does not offer a full functional footprint and is more narrowly focused, from a vertical perspective.

Rating: Promising

OM Partners is a European SCP vendor that specializes in complex-process-oriented vertical industries, such as chemicals, metals and paper. Due to the nature of the planning requirements of these process industries, OM Partners has developed a robust optimization capability that can handle these more-complex supply chain environments. The OM Partners product set covers the key SCP process automation functional areas, including demand planning (OM Partners has developed a forecasting solution to replace the one it was licensing from a third-party software vendor, Aperia, based in France), supply planning and replenishment, as well as detailed manufacturing planning and scheduling, and a comprehensive available-to-promise capability. OM Partners also has developed the functionality to include some capabilities in more process innovation areas, such as inventory strategy policy, and S&OP. The latest version is a completely integrated suite, called OMP Plus, which leverages in-memory integration of the different planning modules with all functionality in place. As users license more of the functionality, the functionality is just switched on in OMP Plus, with no additional implementation. The current release, 5.25, became generally available in October 2008. The OM Partners solution should appeal to companies that need SCP process automation support in a complex-process-oriented environment and want a progressive supply chain strategy to drive process innovation initiatives as their supply chain strategies mature.

OM Partners has focused on companies in Europe and has a strong European installed base, but has been expanding to other regions, particularly the U.S. and Asia/Pacific, and plans to open an office in China in 2010. Most of this expansion has been indirect — that is, OM Partners' solutions are implemented in these other regions as part of a global rollout. OM Partners has approximately 392 customers. Companies should consider OM Partners when they have a requirement for a full SCP footprint, and a process industry orientation with moderate-to-complex supply chain environments. Additionally, companies looking to develop their supply chains from process automation to process innovation (in some keys areas) should consider OM Partners as a sound platform to make that transition.

We gave OM Partners a Positive rating because of its strengths in its full functional footprint and its vision to integrate all these components into a single process model. Challenges for OM Partners, compared with other positively rated vendors, include its geographic coverage (it is European-focused, but is evolving into other regions, especially the U.S., where it is building its customer base) and its narrow industry focus (more-complex process industries). Customers have had positive experiences with the product and professional services.

Rating: Positive

Oracle is a U.S.-based global software and technology vendor. Its SCP process automation functionality comes under Oracle's Value Chain Planning Release 12.1 (the new name for Oracle Advanced Planning), and Demantra Demand Management and Real-Time Sales and Operations Planning (both shipping as Release 7.2). We estimate that Oracle has more than 1,800 customers for its Value Chain Planning suite or components of this suite. Oracle Value Chain Planning has a significant SCP functional footprint, including supply planning, inventory optimization, S&OP, ATP and collaboration, and the production scheduling and strategic network optimization products from Oracle's PeopleSoft/JD Edwards EnterpriseOne/Numetrix. This gives Oracle a mix of SCP process automation and process innovation capabilities. Oracle Value Chain Planning has strong demand planning and S&OP centered around the best-of-breed, process-innovation-oriented Demantra product, which Oracle acquired in the first half of 2006. Demantra's solutions focus on advanced demand planning, trade promotions management and S&OP, supported with analytics and strong collaboration and workflow capabilities.

Oracle has been executing a two-track sales strategy, following its best-of-breed acquisitions in the supply chain space. It can provide an integrated SCP suite (more process automation focus), most of which are tightly integrated into an Oracle ERP instance, or stand-alone functional components (more process innovation focus; for example, Oracle's Demantra Demand Management or Oracle's Strategic Network Optimization). Oracle Value Chain Planning components are often seen alongside Oracle E-Business Suite ERP implementations, due to the tight integration between the Oracle E-Business Suite data sets and the SCP planning tables, and the capability to evolve planning processes in a stepwise fashion from an ERP-based MRP model to a constraint-based SCP model (thereby supporting SCP process automation initiatives). Oracle Value Chain Planning applications (Demand Management, Production Scheduling, and Production and Distribution Planning) also are integrated with Oracle's JD Edwards EnterpriseOne and World ERP solutions. Overall, Oracle Value Chain Planning provides a competent set of process automation capabilities across all SCP functional areas, and brings process innovation into a couple of these areas (for example, demand planning, inventory optimization, and sales and operations planning). In May 2008, Oracle added the Oracle Advanced Planning Command Center to bring supply chain performance management to all the Value Chain Planning components, with summary, drill down and planning process automation capabilities through a single UI. Oracle provides a good SCP process automation base for end users to evolve and develop their SCP strategies. Oracle Value Chain Planning is implemented in process, discrete and distribution-intensive industries (including high-tech, industrial manufacturing, consumer goods, automotive, aerospace, medical devices, and chemicals and metals).

Companies should consider Oracle for their SCP process automation needs when they are Oracle business application customers. Additional requirements can be met by adopting more process innovation solutions from the Oracle SCM suite, or even from non-Oracle vendors. Non-Oracle ERP users with a stronger process innovation orientation should consider the Oracle Value Chain Planning components.

We gave Oracle a Strong Positive rating because of its strength across a number of criteria for SCP process automation. Its product strategy, geographic coverage, functional footprint and customer experience are all strong.

Rating: Strong Positive

Quintiq is a European-based software vendor experiencing growth significantly above overall SCP market growth, and is expanding from its European base to other countries (it has offices in the U.S., China, Malaysia and Australia). Quintiq provides a flexible and configurable planning and optimization solution. The same software is templated into various vertical solutions. Quintiq focuses on three sectors for which to provide templated planning and optimization solutions: logistics and transportation, workforce management, and SCP for the metals and complex process industries (for example, packaging, and food and beverage). Its SCP solutions are primarily focused on the metals industry, providing specific scheduling and planning functionality for various complex process steps (for example, melt cast, hot mill and cold mill), as well as functionality to manage complex order allocation and ATP processes across supply chain networks. Quintiq currently does not provide functionality in the area of demand planning and management.

On the SCP automation/innovation continuum, Quintiq is positioned strongly toward the process innovation end (more than many other vendors, based on its toolkit-like flexibility and templating approach, and its focus on more-complex scheduling and optimization environments). It is able to leverage its platform to provide specific packaged point solutions, tailored customer solutions and templated solutions with a strong vertical orientation. Through its efforts to make the solutions highly configurable, Quintiq has managed to make them relatively easier for end users to "consume," and it gets good customer feedback on the fit of the configured solutions to complex supply chain environments. Quintiq has been implementing solutions via consulting partnerships with several system integrators, such as Accenture, Capgemini and Ordina; it favors deployment of its solutions via its partnership network. The current release of the product is 4.2, which has been available since October 2008. Quintiq claims approximately 85 customer organizations across all sectors, of which 33 are using the solution in a complex process SCP setting.

SCP users in heavy process industries (such as metals and paper manufacturing) with complex supply chains and/or a need for deep process innovation should include Quintiq in their SCP evaluations. Companies looking for more-general process automation SCP functionality or a packaged set of SCP for process automation functionality should be more cautious, or include Quintiq as part of the overall footprint (for the process innovation portion or for specific, complex scheduling and planning requirements).

We gave Quintiq a Promising rating. Quintiq is entering the process automation market (particularly for the complex process industries) and building more "packaged" products, although it is still early in this effort, with few references or demonstrated successes in SCP for process automation. However, the vendor's process innovation SCP is strong, and companies should continue to evaluate the vendor for that capability.

Rating: Promising

SAP is a European-based global software vendor. Its SCP process automation functionality is centered in its Advanced Planner and Optimizer (APO) product, which ships as part of SAP SCM 2007; SCM 2007 became generally available in May 2008. The next release will be SCM 7.0 (in ramp-up in 4Q08, and likely will be generally available in 2009), which will become the stable core SCM version. Subsequent to this release, SAP will be applying enhancement packs (that is, the same model as ERP 6.0) on a yearly basis to SCM 7.0. APO is a capable SCP product for all major industry segments (process, discrete and distribution-intensive), and is one of the most implemented SCP products (in the SAP ERP installed base) on the market today, with more than 1,900 customers. APO covers the main SCP process automation functional areas of demand planning, distribution and inventory planning, production planning, and factory scheduling. Also offered in APO is an ATP capability with enhanced functionality (such as multilevel or rule-based ATP), compared with the more basic ATP calculation in its ERP system. Traditionally, APO has been best-suited for supply chains of low to moderate complexity, although SAP is attracting increasing numbers of customers using APO in more-demanding and complex SCP environments. However, we still hear of customers reporting APO's inability to cope with some forms of more-complex supply chain conditions. Consequently, best-of-breed vendors remain an occasional complement to some SAP ERP and SAP SCM implementations to cope with these more-complex requirements or to cater to some of the users' process innovation needs. However, there are examples of extensive implementations of APO in support of large regional deployments.

SAP SCM is sold almost exclusively to the large SAP ERP installed base, and almost all users of APO also use SAP ERP, with the most implemented module of APO being demand planning, which has seen the development of the Duet capability supporting the integration of demand planning data directly into Microsoft Excel, in support of collaborative demand planning initiatives, as well as customer forecast management capabilities. Supply Network Planner, SAP's inventory planning and replenishment solution, comes with three flavors of network planning, ranging from none to full-constraint-based, and so enables a stepwise approach to leveraging more-advanced constraint-based planning concepts. SAP also announced the launch of a supply chain performance management solution to complement its SCP offerings for 1H09. SAP solutions are industry-focused, and SAP SCM is purchased as an industry solution. In support of a user's progression toward process innovation capabilities, SAP tends to look to its partner network to provide this capability (for example, inventory strategy optimization). Overall, SAP has excellent global coverage through partners.

Companies should consider SAP when they are an SAP ERP customer, and their requirements for SCP fall mainly in the low- to medium-complexity band, or are focused on streamlining best practices.

We gave SAP a Strong Positive rating because of its improving functional footprint, global support and industry focus. Despite some criticisms about the usability of SAP SCM, it is the most installed SCP application in the market, and some of the largest companies in the world use it to plan their supply chains.

Rating: Strong Positive

Syncron is a European-based software vendor that has focused on vertical markets, including automotive aftermarket, industrial, aerospace and defense, and durable consumer goods, with a strong presence in the service parts planning market. Syncron launched its Web-based SCP solutions in 1999, following years of supplying a client/server-based forecasting and inventory management solution. The latest version (Release 8, launched in December 2008) uses SOA and is based on Java code. The Syncron product set covers some of the SCP process automation functionality (demand planning, inventory and replenishment planning, ATP and collaboration), but does not cover manufacturing planning and scheduling. Therefore, the key focus for Syncron SCP is in finished goods, and service parts planning and distribution. Syncron has leveraged its SOA to provide an SCP platform on which the individual modules sit, and that provides some useful supply chain data management, business rules and workflow capabilities that support fairly quick implementations and adaptable business solutions. The focus of the Syncron solutions is firmly in SCP process automation, but with some process innovation elements specific to their target vertical markets — for example, functionality specific to spare parts planning, and vendor-managed-inventory capability for dealer parts management.

Syncron claims approximately 74 customers for its SCP solutions, 39 of which are using the new SOA-based solution. The vendor has offices throughout Europe, and in the U.S. and Japan. Syncron is also experimenting with a managed service offering for some sizable SCP customers. This recognizes that some users appreciate having a vendor manage not only the SCP software, but also the SCP processes, as part of their process automation efforts.

Companies should check references to ensure they are using the most-recent Syncron SCP products. Companies should evaluate Syncron if they are demand planning and distribution-focused with no manufacturing planning requirement, and have slow-moving finished goods and/or spare parts to manage.

We gave Syncron a Caution rating. It lacks a full functional SCP footprint, is in the process of moving from a European focus to a global focus (and, therefore, has some limitations in terms of global coverage), and has a low number of SCP users, outside its core vertical market of service parts planning, using its SCP platform and solution set.

Rating: Caution

TXT e-solutions is a European software vendor headquartered in Milan, Italy, with a strong presence in the European luxury goods, fashion and apparel industries. The vendor also delivers offerings into the CPG, and food and beverage sectors. TXT e-solutions has been successful in selling in its target vertical markets and where it can add value through its specific SCP functionality and deep industry knowledge. The TXT e-solutions SCP footprint covers the key SCP process automation application areas, including demand and merchandise planning, distribution and inventory planning, and manufacturing planning and scheduling. The current release of the product is TXTPERFORM 2008 1.1, which has been available since July 2008. This is a new, integrated product that will eventually cover all the functional areas (only demand planning is available today, the other modules are scheduled to move over by 2010), and it has embedded workflow and analytical capabilities based on Microsoft technology. TXT e-solutions has a strong relationship with Microsoft, which resells the TXT e-solutions demand planning solution (renamed as Microsoft Business Solutions Demand Planner). TXTPERFORM 2008 is now resold as the new Advanced Demand Management solution for Dynamics AX. The TXT e-solutions products have a strong Microsoft Office look and feel, as TXTPERFORM 2008 has an Excel-based UI.

Companies that want integrated demand and supply planning, but without constraint-based optimization, should find a good level of capability in the TXTPERFORM 2008 product. If constraint-based planning, detailed scheduling or ATP is required, then the additional modules of TXTPlan and TXTMake will be required. TXT e-solutions claims approximately 400 customers across all the modules, and another 250 via the Microsoft Dynamics customer base. TXT e-solutions is expanding from Europe, has offices in the U.S., and is working to reduce its dependence on consulting resources in Italy to support implementations. Customers are satisfied with TXT e-solutions services and the domain expertise of its consultants in the luxury goods, fashion and apparel industries. However, there are only 10 live customers on TXTPERFORM 2008 so far.

We gave TXT e-solutions a Promising rating. On many of the criteria, TXT e-solutions has a promising position, although its vertical strategy has tended to be heavily focused on the retail/fashion sector, and its local support for global implementations needs to be strengthened. TXT e-solutions is building its partner network to help address this issue.

Rating: Promising