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).
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
enhancement of the relationship between the two vendors has the following effects:
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.
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.
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).
SynQuest gains a much needed boost to their indirect channel
to increase revenues and gain wider visibility in the enterprise software
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.