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Catalyst International Secures French Connection with Steria

Written By: Steve McVey
Published On: September 21 1999

Catalyst International Secures French Connection with Steria
S. McVey - September 21st, 1999

Event Summary

Catalyst International, the $34 million Supply Chain Execution (SCE) vendor based in Milwaukee, Wisconsin, has further strengthened its relationship with Steria, a large systems and services integrator in France. Steria will be the exclusive VAR for Catalyst's WMS (Warehouse Management System) solutions in France, providing sales, marketing, and implementation services. The agreement follows Steria's signing of French electrical wiring manufacturer Legrand, a new Catalyst account, earlier this year.

Market Impact

Catalyst's move is consistent with its strategy to expand foreign sales revenues by utilizing a network of local Value Added Resellers (VARs). International sales for Catalyst WMS have remained largely flat over the last three years, in part due to an undersized direct sales force (at 14 percent of total headcount, somewhat below the industry average of 22 percent). Deciding that further European direct sales expansion would expose the company to high cost and risk, Catalyst has now committed to a course that has proved effective for other vendors, especially in the ERP market. Local resellers are able to not only sell and implement the product, but also provide translation services (manuals, marketing materials, etc.) and exposure to additional customer bases. In addition, developing a broad indirect channel in the form of VARs may enable Catalyst to wrest market share from rivals EXE Technologies and Industri-Matematik, both of whom have experienced declining European revenues over the last two years.

User Recommendations

Prospective Catalyst clients should benefit from the Steria alliance, particularly those in France. For France, Steria is an experienced, well-established mid market integrator and brings a proven implementation methodology to the partnership, now formalized by the recent agreement. For users elsewhere, Catalyst's use of local VARs enables them to divert more attention (and funds) to software development and less on consulting, a strategy that should strengthen their Catalyst WMS product over the long term.

 
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