J.D. Edwards Names SynQuest Preferred Solution

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J.D. Edwards Names SynQuest Preferred Solution
S. McVey - September 10th, 1999

Event Summary

J. D. Edwards has named SynQuest, Inc. a preferred solution for scheduling and execution in discrete manufacturing environments. As part of the agreement, the two companies will share in revenues generated from joint engagements. Michael Schmitt, senior vice president of worldwide sales and marketing at J.D. Edwards, touts the move as further evidence of JDEdward's commitment to the supply chain management needs of their customers. JDEdwards acquired Toronto-based SCM vendor, Numetrix, in June 1999 for $80 million (USD).

Market Impact

An alliance between J.D. Edwards and SynQuest is nothing new. In fact, a key development that fostered their ongoing relationship was announced in April of 1998. This was SynQuest's Manufacturing Manager application for shop-floor execution that links to their advanced planning and schedule (APS) engine. Shortly thereafter, SynQuest announced a standard interface between their new execution system and JDEdwards' SCOREX solution for supply chain optimization and real-time extended execution.

The recent enhancement of the relationship between the two vendors has the following effects:

  1. J.D. Edwards supplements their ability to deliver supply chain management solutions to their customers. If successful, the partnership should result in more joint installations, leading to better integration of the products.

  2. J.D. Edwards obtains better coverage of the supply chain management market by strengthening an arrangement with a vendor strong in planning and execution in discrete parts manufacturing. In constrast, the Numetrix suite is geared primarily toward process manufacturing.

  3. J.D. Edwards gains a better foothold in the SME (Small-to-Medium Enterprise) marketplace, SynQuest's primary focus. This move is in line with our recommendations (see the TEC note, "J.D. Edwards - Creating OneWorld of Mid-sized ERP Users", 10/1/99).

  4. SynQuest gains a much needed boost to their indirect channel to increase revenues and gain wider visibility in the enterprise software market.

User Recommendations

Current and prospective customers of J.D. Edwards and SynQuest should exercise caution when evaluating one or the other vendors as providers of complementary solutions. Improved technological integration is never guaranteed by joint marketing arrangements, and only comes after the arrangement yields considerable implementation experience.

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