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HighJump Grows in a Period of Low Growth Through Adaptable, Broad Function Products

Written By: Predrag Jakovljevic
Published On: April 14 2003

Event Summary

On February 10, HighJump Software (www.highjump.com ), a privately-held provider of adaptable, Internet-based extended supply chain execution (SCE) solutions, announced that it has lately secured significant new customer wins and global partners in its ongoing efforts to become the industry leader in providing global SCE solutions. Additionally, HighJump's International Associate Partner Program now reportedly consists of industry-leading consulting and solution providers located in key geographic regions throughout the world. HighJump believes each Associate has a proven track record of success selling and implementing SCE solutions in global markets, but with invaluable knowledge of their local markets. Associates in turn attend HighJump University, its comprehensive solution and implementation training center, and are provided with continuing product, implementation and marketing support. The Program currently includes representation in the following geographic regions:

  • Asia-Pacific: CL Solutions (Hong Kong)

  • Australia: HighJump-Australia

  • Brazil: HighJump-Brazil

  • Chile: HighJump-Chile

  • India: WIPRO

  • Italy: Datilog

  • Mexico: SCAN

  • Middle East: ePeople Consulting (Dubai, United Arab Emirates)

  • South Africa: AST

  • United Kingdom: KTP, HighJump-UK

This is Part One of a four-part note.

Part Two will discuss the Market Impact.

Part Three will analyze HighJump SCE solutions. Part Four will cover Challenges and make User Recommendations.

Background

HighJump began life as Data Collection Systems Inc. (DCSI), a provider of bar-code data-collection systems to track labor costs and inventories in manufacturing plants and warehouses. The company was founded in 1983 to develop inexpensive systems to collect, view, edit, and process shop-floor/warehouse data for existing mainframe-based applications. Although data-collection systems remained an important offering, since 1997, under the leadership of CEO Chris Heim, DCSI began to more aggressively diversify and evolve into a full-fledged SCE vendor. DCSI complemented its first SCE product, a radio frequency (RF)-based warehouse management system (WMS) named Warehouse Advantage, with applications that facilitate many aspects of Internet-based order fulfillment. Consequently, the revenue nowadays is split into a healthy 40% for license fees, 50% for services & maintenance, and remaining 10% for data-collection hardware.

In 2000, DCSI became HighJump, albeit, contrary to its competitors like Provia or Adexa (see What's in a Name for Supply Chain Vendors? ), this name has not necessarily been made up with any deliberate causal meaning.

HighJump customers include manufacturers, distributors, retailers and third-party logistics (3PL) companies, and the vendor targets the operational needs of a wide range of organizations from midsize to large companies and divisions of the Fortune 1000, with more than 700 customers at this stage. Sample customers include Verizon, Honeywell, Sony, Georgia-Pacific, Toro, Fisher-Rosemount, PepsiCo, Starbucks Coffee Company, Circuit City and NASA. Moreover, several new international customers have recently been added to HighJump's growing roster of worldwide customers. These companies span industries including retail, telecommunications, food/beverage and consumer packaged goods (CPG), and utilities. Key customer wins include Comercial Mexicana, DiMalsa Logistics and Alen Grupo in Mexico; SKF Italy; Ajover in Colombia; Hitachi and Top Shop Holding B.V. (Oke TV, Tel Sell and TV-Select) in the Netherlands; Telecommunications Services of Trinidad and Tobago; PCTEL in Hong Kong; Artysen Technologies in China; SMART Modular in Singapore; and Quebec Telephone, Hospital for Sick Children and Pauwels in Canada.

To support its international endeavors, HighJump has also extended Supply Chain Advantage, its collection of SCE solutions, with multi-lingual applications to broaden the global deployability of the product line. Thus, throughout 2003, HighJump continues to further its aggressive international expansion with ongoing partner initiatives, new customer wins and product enhancements geared toward a global audience, which it has successfully initiated a year earlier. Namely, for fiscal year 2002, which ended March 31, 2002, the company realized 40% year-over-year revenue growth as well as profitability. Fiscal year 2002 produced other significant achievements for HighJump Software, since, in addition to acquiring over 50 new customers, the vendor:

SCE Solution Suite Enhanced

First, HighJump released Warehouse Advantage Suite 5.0 in November 2001. In addition to enhancements to all of the components of the supply chain solution, this release featured an enhanced event management module called Event Advantage that measures and monitors supply chain processes for exceptions and bottlenecks, enabling an organization to proactively manage events across its supply chain. Other enhancements to HighJump's suite of SCE solutions included product innovations for wireless communications and extended Web visibility via hand-held personal digital assistant (PDA) devices, which facilitates real-time, mobile decision-making.

Later in 2002, HighJump announced the release of Warehouse Advantage Suite 5.1, which extended HighJump's inventory management and collaboration capabilities with key functionality that includes yard management and multi-lingual applications. Central to the release of Warehouse Advantage Suite 5.1 was the yard management solution, Yard Advantage, which extends the activities involved in inventory management beyond the traditional scope of the warehouse. This browser-based solution leverages real-time information exchange to increase operational efficiency by coordinating and optimizing physical product movement as it arrives in the yard and is introduced into the warehouse or distribution center. Yard Advantage can operate as a stand-alone system or can be fully integrated into SCE and/or warehouse management solutions, such as HighJump's supply chain execution suite, to increase the visibility and effectiveness of the entire supply chain.

Key Features of Yard Advantage are:

  • Dock Appointment Management provides a central point of visibility for appointment details such as date, time, dock location, carrier name, appointment type and appointment status.

  • Cross-Dock Opportunities are highlighted for the manager to maximize the throughput of the warehouse and minimize costly exceptions.

  • Gate Check-in and Check-out provides security and control over all trucks entering and leaving the yard.

  • Yard Jockey Moves are driven with radio frequency (RF) terminals, keeping the yard jockeys active and productive in the movement of trailers within the yard.

  • Metrics and Performance Tracking provide vendor compliance and yard performance metrics.

One of the possibly unique features of Warehouse Advantage Suite is the system's tools-based component architecture. Because the architecture separates business logic and underlying code, any modifications that customers have made to business logic remain intact during the upgrade process. As a result, customers have reportedly been able to add the new functionality and features included in release 5.1 and later in hours, not weeks or months, while absolutely no custom coding is required. In addition, the 5.1 release features multi-lingual applications to support multiple languages (French, Italian, German, Spanish, or English) as part of one application.

Strategic Alliance Partnerships Expanded

During fiscal 2002, HighJump created successful partnerships with a number of key consulting, technology and hardware firms working within the SCE industry. Partnerships include Tompkins Associates, IBM, WIPRO, Digiterra, KSA, KEOGH Consulting, ESYNC and SPS Commerce, all of which have reportedly led to mutually successful client engagements.

Continued Growth in International Markets

During fiscal 2002, HighJump expanded its international presence via several noteworthy partnerships with Associates in Mexico, Ireland, Italy, Hong Kong, Malaysia and the United Arab Emirates.

Outside Funding Secured

In February 2002, HighJump closed a $10 million equity investment with Gemini Investors of Wellesley, MA and St. Paul Venture Capital of Bloomington, MN. This funding, secured in a turbulent economic environment, will have demonstrated the investment community's confidence in HighJump's solutions and its ability to be a notable player in the SCE market.

This concludes Part One of a three-part note.

Part Two will discuss the Market Impact.

Part Three will analyze HighJump SCE solutions.

Part Four will cover Challenges and make User Recommendations.

 
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