Dassault Systèmes Gets into Supply Chain via Quintiq

Dassault Systèmes announced its intent to acquire Quintiq, a Netherlands-based provider of supply chain management (SCM) and operations planning and optimization software, both cloud-based and on-premise, for approximately €250 million. This acquisition extends Dassault Systèmes’ 3DEXPERIENCE platform with new capabilities (i.e., optimize workforce utilization, plan logistics, and define resource allocation and delivery), and in particular its DELMIA brand’s value proposition beyond digital manufacturing and production to the optimization of business processes.
The acquisition is expected to diversify DELMIA into business operations planning, a domain that goes beyond supply chain to encompass full operations planning, logistics, and optimization. In addition, it should strengthen Dassault Systèmes’ industry coverage in metals, mining, oil and gas, rail, delivery, and freight with new capabilities and offerings. Quintiq is set apart by it optimization technology and a platform approach to covering long-term strategic to day-of-operational planning.
With 800 employees, Quintiq’s offerings include production, logistics, and workforce planning applications, and its solutions are used by 250 customers, at 1,000 sites, in more than 90 countries. Its customers include Novelis, ArcelorMittal, Walmart, DB Schenker, and KLM.
It’s logical for Quintiq to be integrated with DELMIA, but what about ENOVIA product lifecycle management (PLM)? As cycle times shrink and one can make almost anything anywhere, modeling supply chain alternatives in PLM can reduce the risk of shortages and/or compliance issues. If manufacturing moves to a fast fashion or configure-to-order (CTO) engineer-to-order (ETO) world, PLM/SCM suites could be more relevant than big enterprise resource planning (ERP) suites.
In the short term, Dassault Systèmes is looking at several mining opportunities for some quick wins to help learn the SCM business, which will then provide a foundation for its future product roadmap. Increasing customer and market expectations for quick responses based on real-time alerts, highlight the need for adaptability to be extended to supply chain and business operations. The Quintiq acquisition could be a way for the giant to build a best-in-class solution for the future.
But for now, this looks like this an assault on Siemens PLM Software’s digital manufacturing strategy (since its acquisitions of IBS, Preactor, and others). I might be a little ahead of the herd, but I believe that integrating PLM to SCM and PLM to manufacturing execution systems (MES) and customer relationship management (CRM) could back ERP into a corner. In the future, ERP may become a black box, with CRM, SCM, MES, human capital management (HCM), etc. owning most of the users. When will other large PLM vendors accelerate their move into SCM and then CRM? I could see one of them even picking up Plex or NetSuite to embed cloud ERP into their suites.
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