Download - Logistics Management
Download - Logistics Management
Download - Logistics Management
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
November, but this remains to be seen.<br />
Total intermodal traffic volumes should<br />
end the year with a 4 percent to 6 percent<br />
increase.”<br />
Another reason for the slower quarterly<br />
growth rate on the international<br />
intermodal side, explained Casey, was<br />
that many shippers had diminished<br />
inventories coming off of last year<br />
that may have led to inventories being<br />
replenished earlier the following year.<br />
On top of that was shipper concern<br />
SUPPLY CHAIN SOFTWARE<br />
RedPrairie to acquire JDA for<br />
roughly $1.9 billion<br />
ALPHARETTA, Ga.—Supply chain<br />
and logistics software and technology<br />
providers RedPrairie and JDA Software<br />
announced in November that the two<br />
companies and its affiliates have entered<br />
into a definitive merger agreement.<br />
Officials from RedPrairie and JDA<br />
said that RedPrairie will acquire all outstanding<br />
shares of JDA stock for $45<br />
per share, which they said represents<br />
a 33 percent premium to JDA’s stock<br />
price as of October 26. The total value<br />
of the transaction is roughly $1.9 billion<br />
and is expected to close by the end<br />
of this month.<br />
JDA CEO Hamish Brewer is<br />
expected to lead the combined<br />
over the potential East and Gulf Coast<br />
labor strike, which was given a threemonth<br />
reprieve in early October for<br />
ports and labor organizations to work<br />
out their differences.<br />
Many analysts have told <strong>Logistics</strong><br />
<strong>Management</strong> that even with a stagnant<br />
economy and flattening trucking volumes,<br />
it stands to reason that intermodal<br />
is in a pretty good spot when it comes to<br />
its future performance prospects.<br />
—Jeff Berman, Group News Editor<br />
company as CEO, and RedPrairie<br />
CEO Michael Mayoras will serve on<br />
the board of the combined company.<br />
RedPrairie and JDA officials said that<br />
the combined entity will “offer a broad<br />
portfolio of solutions and services to manage<br />
global supply chains—from raw materials,<br />
to finished products, into the hands<br />
of customers—through any channel.”<br />
Industry experts said that there are<br />
strong synergies between the two companies<br />
as RedPrairie has a strong retail<br />
presence, especially inside the four<br />
walls of the retail store, due in part to<br />
its acquisition of BlueCube Software<br />
that focuses on retail site and headquarters<br />
operations.<br />
JDA has a strong set of retail supply<br />
chain planning applications, including<br />
inventory optimization, demand planning,<br />
and network optimization. Some of<br />
that was core to JDA and some as a result<br />
of its acquisitions of Manugistics and i2.<br />
JDA also has a strong set of transportation/logistics<br />
applications, but what they<br />
don’t have is warehouse management,<br />
which RedPrairie brings to the table.<br />
An industry source estimated that<br />
combined revenues will be in the $1 billion<br />
to $1.2 billion range, which would<br />
make them the largest best of breed provider<br />
of supply chain management software.<br />
The source added that they will be<br />
as big as Oracle’s supply chain management<br />
practice, but not as big as SAP’s.<br />
RedPrairie’s Mayoras said that this<br />
acquisition creates a “fantastic blend of<br />
organizations that both have been working<br />
for a long time to improve in supply<br />
chain science and extend the idea of<br />
supply chain management throughout<br />
the organization.”<br />
JDA has maintained a strong retail<br />
heritage over the last 25 years and<br />
expanded beyond retail with a focus<br />
on the end-to-end supply chain with<br />
acquisitions of Manugistics in 2006<br />
and i2 in 2010, said Brewer. “Our customer<br />
base today is very well-balanced<br />
between retail and manufacturing, as<br />
well as distribution companies and targeted<br />
transportation services,” he said.<br />
Ian Hobkirk, president of Commonwealth<br />
Supply Chain Advisors, said<br />
that RedPrairie should be able to present<br />
itself as a credible third option to<br />
the ERP versus the fragmented bestof-breed<br />
debate. “They’ll be a super<br />
best-of-breed,” said Hobkirk, “that can<br />
manage the entire supply chain with a<br />
single interface back to the ERP.”<br />
Hobkirk also noted that retailers<br />
could benefit significantly from this deal<br />
as many are already using JDA applications<br />
for things like demand planning,<br />
merchandising, and store replenishment.<br />
“These applications would, in<br />
theory, be much more closely linked<br />
with execution applications like warehouse<br />
management, transportation<br />
management, and store operations for<br />
greater responsiveness to changes in the<br />
demand plan,” he said.<br />
—Jeff Berman, Group News Editor<br />
December 2012 | WWW.LOGISTICSMGMT.COM LOGISTICS MANAGEMENT 13
Change language