November 5, 2012
New Mountain Capital, the owner of Red Prairie, the demand sensing and supply chain execution software vendor, announced last week that it would fully acquire supply chain planning vendor JDA. The merger will result in a supply-chain planning and execution solution provider with more than $1 billion in revenue with 87 of the world’s top 100 consumer goods manufacturers and 82 of the world’s top 100 retailers running either Red Prairie or JDA applications.
For some time Red Prairie has been buying assets to extend supply chain into the store, a strategy it calls “commerce in motion.” The idea is to extend beyond mere inventory visibility to better predict where inventory should be held. Red Prairie’s demand sensing and eCommerce solutions as well as its warehouse management and store execution capabilities can complement JDA’s collaborative planning to provide a platform for collaborative new product introduction and promotion investments.
This looks like an extension of the idea that applications and processes will become interenterprise or value-chain centered rather than enterprise focused and will ultimately move to the cloud to capitalize on collaboration opportunities with a whole network of value chain partners. JDA 8.0 is already delivered (together with multichannel assortment planning) as a cloud solution.
It seems to me the opportunity to think beyond "four walls" and plan demand, in the case of retailers all the way back up to sourcing, or in the case of manufacturers to plan and execute down to the shelf or the fulfilment of e-commerce orders, offers a really intriguing opportunity to deliver more effectively on private-label and branded merchandise assortments to demanding consumers browsing and buying across channels.