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Great Plains Supply Chain Series To Be Powered By Logility

Written By: Steve McVey
Published On: July 31 2000

Great Plains Supply Chain Series To Be Powered By Logility
S. McVey - July 31, 2000

Event Summary

Logility recently announced an OEM agreement with ERP vendor Great Plains Software in which some of its products will be branded and sold as Great Plains' Supply Chain Series. The first modules to be offered are Logility's warehouse management system, WarehousePRO and its logistics execution application, Transportation Management. Great Plains plans to incorporate more applications in the future, including Logility's collaborative planning products, Voyager XPS and Voyager XES. The deal brings together two companies with complementary strengths and only a small potential for conflict.

Market Impact

Great Plains has made a prudent decision in partnering with Logility. Logility offers a broad range of applications in all the important areas of supply chain management as well as state-of-the-art B2B collaborative planning solutions that allow multi-channel supplier/customer relationships to be managed effectively. In addition, Logility and Great Plains have participated together in several implementations for mid market brick-and-mortar and Internet-based retailers. The most recent of these was at Smarterkids.com, where reportedly WarehousePRO was installed in just 90 days.

We see excellent potential for the partnership and little chance of conflict as Great Plains does not currently offer its own supply chain planning products. In contrast, both Oracle and SAP have alienated past partners by developing SCM applications to compete directly with those of their partners. Possibly the only potential pitfall, Great Plains plans to offer Logility applications standalone and at a discount, which can lead to channel conflict if not handled carefully.

Of course, Logility receives a portion of the revenue generated from Great Plain's sales of its products and the risk of conflict is offset considerably by the sales opportunities afforded by the vast indirect channel that Logility gains in Great Plains. Great Plains has established very strong branding and penetration within the Small-to-Medium Enterprises (SME) segment of the ERP market and enjoys an extensive partner channel with over 1,600 experienced partners.

User Recommendations

Current users of Great Plains eEnterprise with additional warehousing or transportation management requirements will benefit from acquiring the GP-branded supply chain execution products as these are available at a lower license cost than the same products purchased directly from Logility.

In the short term, these users should be prepared for some bumpy ground since Great Plains and Logility still need time in which to polish their collaboration on delivering technical support for the products. As GP staff becomes familiar with Logility's products and the OEM partnership solidifies, these problems are likely to diminish. Prospective mid market buyers of enterprise software should look favorably on the deal and increase their rating of Great Plains in any ongoing or future evaluations.

 
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