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S. McVey - September 6, 2000

Event Summary

Provia Software, the Michigan-based supply chain execution software vendor formerly known as Haushahn Systems & Engineers, recently announced that it has completed the 500th implementation of the company's VIAWARE software. The milestone was accomplished at Lanier Worldwide's Philadelphia distribution facility, which recently went live with Provia's VIAWARE supply chain fulfillment product solution. This was the third Lanier facility to go live with Provia, with 3 more facilities scheduled to go live later this year. Provia counts traditional single-site installations as well as installs deployed via an Intranet to multiple sites from a central client location. The figure is probably still conservative since the company counts installations of multiple components, for instance WMS and TMS at a single location, as one site.

The VIAWARE suite of applications for fulfillment is Provia's response to a clear trend among many warehouse management software vendors to round out their product offerings by including adjacent functionality. VIAWARE is composed of Provia's flagship warehouse management system (WMS) and yard management system (YMS), an order management system (OMS), acquired in 1999 from Logistics Concepts, a transportation management system (TMS) acquired earlier this year from Pinnacle Distribution Concepts, its new visibility tool, VIAVIEW, developed in-house.

Market Impact

While five hundred is an arbitrary number, it does place privately held Provia in good company among the leading SCE vendors, Manhattan Associates, Industri-Matematik, EXE Technologies, IBS, and McHugh Software. Though its exact position is unclear (since vendors rarely report client installations the same way), the milestone is less important for ranking purposes than it is as an indication of a growing customer base - one that can be mined for additional license revenues. Provia's evolution from a WMS vendor into a multi-function, order-to-delivery fulfillment software vendor is partly responsible for its larger client base, as it has acquired clients in two acquisitions. These are important wins for the potential repeat business that Provia may gain when clients want to expand their IT coverage to support order and fulfillment activities.

Provia is by no means the only SCE vendor to offer warehouse management, transportation management, and order management. HK Systems has grown its core offering in WMS by the addition of all of these functions, as has IMI with VIVALDI and EXE Technologies with its Exceed Fulfillment Server.

Provia is distinguished rather by its unique approach to implementation services that puts the knowledge in the hands of the client. Its Knowledge Exchange Methodology allows clients to learn the nuts and bolts of VIAWARE in a two-week course that precedes the start of the implementation. Use of client resources can bring great cost savings in addition to building expertise for maintaining the solution internally. Part of the reason why this is possible is that Provia offers VIAWARE as a configurable, packaged solution and discourages customizations that can quickly ensnare project timelines.

While a packaged approach is not for all clients, those who have chosen the methodology have good things to say. "We took ownership of our implementations after the second site," said Bill Cook, VP of Logistics, for Lanier Worldwide. "With the high level of knowledge we already had on the Provia system from the training classes and 'hands-on' approach we took with our first two implementations, implementing our third site was a breeze. We plan to continue this practice for our remaining implementations."

User Recommendations

Provia has a strong value proposition for companies in third party logistics, consumer packaged goods, high tech electronics, industrial distribution, and retail. Prospective clients should keep in mind the packaged nature of VIAWARE and understand that customizations will cost more.

Users who want to host their applications internally or "rent" them from Provia via a partner ASP can sign up for VIAWARE OMS, TMS and VIAVIEW immediately. FreightLogic, the product acquired from Pinnacle that ultimately became VIAWARE TMS was built originally for the Web. Provia is replicating its technology to make the rest of its suite Internet-ready.

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