Demandware Gets Into Mainstream Order Management

Demandware, a provider of enterprise cloud commerce solutions, recently announced that it has acquired privately held Mainstreet Commerce, a provider of cloud-based order management solutions. The combination of Demandware’s popular cloud commerce platform (see TEC’s article for more) and Mainstreet Commerce’s distributed order management (DOM) solution is expected to simplify order orchestration between online and in-store shopping processes. It should also optimize store and Web inventory, as well as enable retailers to deliver a “buy anywhere, fulfill anywhere” and “service and return anywhere” consumer experience. These “anywhere” capabilities are critical to managing the entire order life cycle and delivering an omni-channel consumer experience.
Mainstreet BusinessFlow (MNSB) is a functional DOM solution with flexible configuration capabilities that support the complex business needs of brands and retailers such as LiveNation, Life is good, Brooks Sports, Urban Decay, and Zumiez. It includes full life cycle support across all channels and devices, from sales origination through automated payment processing, order processing, shipping management, drop-shipping, and fulfillment. Like Demandware, it is built and delivered via a cloud-based architecture, and is scalable and fairly easily adapted to meet customers needs without limiting the ability to upgrade.
In addition, Demandware and Mainstreet Commerce share approximately 20 customers, including clothing retailer Vineyard Vines, which is leveraging the two technologies to enable omni-channel shopping experiences. Mainstreet’s entire team, including founders Mike Sandler and Nick Laurie, will join Demandware. Demandware does not expect that this transaction will have a material impact on its 2014 financial results. Demandware CEO’s blog post sheds more light on the rationale behind the acquisition.
With this acquisition, Demandware aims to help retailers reduce complexity and accelerate delivery of the omni-channel experiences that consumers expect. The combined solution should help retailers improve customer satisfaction and loyalty, lower inventory carrying costs and increase turnover, enhance customer service, and increase revenue by facilitating omni-channel imperatives. IBM Smart Commerce, Oracle ATG, SAP Hybris, and others have already been offering these combined capabilities, but not necessarily everything in a multi-tenant cloud. It will be interesting to watch how Demandware’s partnerships with similar DOM providers, especially with Manhattan Associates, will unfold now with this acquisition.  
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