Background
The early years for Click Commerce (founded in 1996) centered on extranet enablement, and in particular, on demand chain solutions for business-to-business (B2B) and business-to-customer (B2C) e-commerce. Click Commerce's early channel management software allowed manual and dynamic creation of relationship hierarchies and online communities within a distribution channel, through the use of membership rules. The intent of this functionality was to help enterprises establish B2B distribution portals and B2B-to-consumer portals. In these portals, the relationships and business process rules between the enterprise and its channel partners are transparent to the consumer. Enterprise channel management strategies gradually gave way to the potentially explosive private trading exchanges (PTXs), leaving Click Commerce and competitor Comergent in a leading position for the sell-side PTX market. This market, however, never materialized.
Click Commerce also ventured into product information management (PIM), acquiring PIM vendor Requisite Technology in late 2005. Flagship client Delphi Automotive worked with Click Commerce to move its entire aftermarket catalog online, as the first step towards aggressively driving its aftermarket e-business. Large tier one suppliers looked to Delphi as a model for how to manage an aftermarket e-business strategy without rubbing distributors and original equipment manufacturers (OEMs) the wrong way. Delphi's initiative also continued Click Commerce's successful run at extranet implementations in automotive and heavy equipment channel management.
Click Commerce's Version 4.0, dating from early 2000, featured layered architecture consisting of the Relationship Manager platform and a suite of more than eighty application modules. Version 4.0 featured extensible markup language (XML) for communication between its application modules and an enterprise's legacy, enterprise resource planning (ERP), and other back-end systems, in order to streamline implementation and integration processes. Click Commerce licenses Relationship Manager and Application Suite at enterprise or divisional levels. The enterprise then authorizes its channel partners, and in some cases the consumer, to access the modules, including the enterprise's ERP software and other legacy systems, via an Internet connection and a browser.
More recently, Click Commerce has ventured into warehousing and service supply chain execution solutions, with the acquisitions of Optum Software in early 2005 (which had in turn previously acquired World Chain) and Xelus, Inc., a leader in services parts management, in June 2005.
Optum was an established supply chain execution (SCE) vendor with over 750 implementations of its MOVE WMS product; clients included Grainger, Federal Mogul, GE Aircraft Engines, and Pier 1 Imports. Like many SCE vendors, Optum realized that its core competency of complex, high volume warehousing and distribution systems could be transformed if the classical four walls and enterprise-constrained boundaries in SCM could finally be broken. Optum invested heavily in its TradeStream product; this was a collaborative integration and aggregation application which provided centralized visibility of order and inventory information. This was an ambitious undertaking, and a more difficult project than it seems, given the difficulties of connection technologies and critical mass participation within a specific supply chain community. TradeStream was piloted and implemented by Lucent Technologies, which brought credibility to the initiative.
The company which for three decades was known as LPA, renamed itself Xelus in mid-2000, to exemplify its new zeal. Xelus, a leading service parts inventory management application vendor, survived by dominating the market for best-of-breed service parts inventory and demand planning technology—first with customized systems, and then with software applications. After a difficult period from 2002 to 2004, the company emerged with new technology, leveraging its installed base of clients like Delta Airlines and British Airways.
Click Commerce's supply chain solutions, while diverse, find synergy and balance through Network Logistics.
Network Logistics
Click Commerce's supply chain solutions spectrum now spans three segments:
- demand chain solutions, which regroup B2B and B2C e-commerce, product information management (PIM), and channel management
- supply chain solutions for warehouse management, order fulfillment, and supplier relationship management
- service supply chain solutions, with parts forecasting, planning and optimization, repair depot management, and reverse logistics.
Network Logistics combines the strengths of the (acquired) parts, coupled with existing and newly developed technology:
Integrated service supply chains require the connection of demand, supply, and service, to power high performance supply chains that are lean, extended domestically and globally, agile and flexible, and demand-driven. Supply chain execution can be more complex in the service supply chain, as parts and assemblies have multiple and varied part identities, workflow, and assembly and disassembly processes. Service supply chain optimization is the key message and strategic thrust of Click Commerce. Service supply chain complexity is inherently plagued by critical issues of disconnected and error-prone manual processes, suboptimal fill rates and service levels, high inventory and cycle times, forecast inaccuracies, and limited flexibility. Click commerce is proceeding with its solution strategy based on the premise that time is the common metric across all links in the service supply chain. A tight coupling between decision support and execution systems is required in order to reduce cycle times, which translates into increased performance.
Network Logistics 4.1, the current generally available suite, addresses the critical service supply chain issues via rapid trading partner integration; n-tier supply chain coordination; global supply and demand visibility; order and forecast collaboration; real-time sense and respond capabilities; predictive, exception-based event management; and supply chain analytics. More specific to service parts management than previous releases, this release also offers subinventory tracking of inventory details, attribute and rule specifications based on part group, parts substitution, user level configurability, replenishment based on inventory condition, and enhanced serial number tracking.
Click Commerce has an ambitious product evolution roadmap that includes the technical progression of its Network Logistics and next-generation warehouse management system (WMS), towards a J2EE n-tier architecture, pure Java code base, with multiplatform support and database independence. The next generation WMS solution, WMX, scheduled for release in the fourth quarter of 2006, will be based on service-oriented architecture (SOA), and will be deployable as a service-and-use standard open source tool. Salient features will include voice identification and radio frequency identification (RFID) with compliance. Click Commerce is partnering with Vue Technologies for RFID, and pilot projects with Ryder and HP are under way.
Click Commerce recognizes that the playing field is highly competitive and fragmented with IT behemoths, best-of-breed operators, and B2B platform players. It is imperative for Click Commerce to differentiate via the provision of strategic business process-centric solutions, with technology and solutions that compliment ERP, designed for the extended enterprise. These complimentary solutions need to be flexible, adaptable, and efficient. Click Commerce believes that it will remain competitive because its composite applications will create true business process solutions that follow the current market trend toward integrated suites of best-of-breed applications. ERP has traditionally not been equated with highly agile performance, and Click Commerce believes it can provide process-centric solutions faster and cheaper, with an on-demand or license deployment model.
While manufacturers tend to perceive a conflict between best-of-breed and ERP suites, actual deployments indicate that coexistence is the norm. Recent analyst studies find that companies that implement a framework of leading functionality with strong integration between application solutions can achieve best-in-class operating results.
Manufacturers have dramatically improved inventory turns, and effectively positioned their service parts operations as a key profit center for the future. This coexistence between service planning and enterprise transaction application solutions has enabled service-oriented manufacturers to optimize their resources while supporting increasing demands and complexities with agreements at the level of customer service. Manufacturers have traditionally leaned towards best-of-breed functionality. However, until recently, the lack of acceptance of best-of-breed applications has been a key barrier to technology integration. Applications and integration technologies such as SOA are now evolving so that companies can obtain the best overall solution to their business problems.
Summary
Recently announced revenues of $58.7 million (USD) for fiscal year 2005 represented an increase of 128 percent over fiscal year 2004 results. Revenues appear to be evenly split between the three solution segments of demand chain, supply chain, and service parts. The balance of solution offerings appears to be achieving a positive result where the sum of the parts translates into a well-balanced whole. Given its head-to-head competition with major ERP vendors (SAP, Oracle, SSA Global, Infor, and Epicor) and Manhattan Associates, the largest best-of-breed supply chain execution (SCE) vendor, Click Commerce realizes that it will require focus, leverage, and near flawless execution. They are honing in on industry verticals like high tech, electronics, automotive, and aerospace, where they can leverage existing assets as well as its product strategy of an integrated and agile B2B suite delivering more for less. There may also be new opportunities in consumer goods and retail, with its WMX product attributes for RFID and voice identification coupled with strong value-added processing capabilities and next-generation architecture
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Edwards Names SynQuest Preferred Solution | Manugistics Takes Another Hit on Earnings as CFO Resigns | Descartes Systems Group Makes D&T Growth List | Catalyst International Secures French Connection with Steria | i2 Announces e-Business Strategy | Oracle Integrates Front and Back Office with Applications 11i | PeopleSoft's CEO Steps Down | SSA Seeks Support from Synquest | Catalyst International Bit by Y2K Bug | SAP sets up Apparel and Footwear team | Geac and JBA Join Forces to Form New ERP Giant | Optum Gets a Hand From Categoric | Computer Associates, Baan Japan and EXE Announce Strategic Alliance to Provide Total Supply Chain Management Solutions | New Management at Manhattan Associates | Oracle to Enlist BPA Systems in its Mid-Market Quest | SAP Lowers Revenue Expectations | i2 Technologies Garners Semiconductor Award | Aspen Technology Posts First-Quarter Loss but Beats Estimates | Symix Maintains Consistent Profitability Despite Y2K Market Conditions | Software Leasing Trend Slams Baan Earnings | Hershey's Halloween Nightmare All Too Common for Supply Chain Implementations | Intentia Americas Gains Momentum with 10 New Deals Inked During Last Two Weeks | MAPICS Reports Solid Profitability Despite Dismal Fiscal 1999 4% Growth | Baan Releases New Supply Chain Products | French Government awards ERP contract to Peoplesoft | Business Software Firms Sued Over Implementation - Lawsuits Bring ERP Problems to Light | Geac Metamorphosises JBA Into Gear, but Cuts 20% of Staff | SAP Details CRM Plans | Deloitte & Touche Alliance with SynQuest Largely Symbolic | Logility Surges on Second Quarter Earnings Announcement | More Than 600 Customers Live on J.D. Edwards OneWorld. Dot.Com and Brick & Mortar Customers Alike Select J.D. Edwards to Achieve E-Business Agility | SAP Announces Investment in Catalyst International | Fortune Smiles on i2 Technologies | Baan Acquisition Expands Product Set and Integration Issues | J.D. Edwards Incurs Further Losses In Third Quarter | Intentia and Dash Associates Team Up | Key Product Delays Take a Toll on Oracle Users | Descartes Evolution Yields Revenue Growth But No Profits | ERP Packages For Midsize Firms in the Works | QAD Reports Third-Quarter--Revenue Rises 56 Percent | Cap Gemini Eyeing Ernst & Young Business Unit | Industri-Matematik Posts 2Q00 Loss But Sells CRM | Pronto ERP 'Coming to America' | Andersen Consulting to Grab a Piece of the Internet Pie | System Software Associates Announces Fiscal Fourth Quarter Results - The Agony Continues | Aspen Technology Signs Pact with PWC | J.D. Edwards Closes Out Millennium on an Up Note | Boeing Expands Baan Licensing Deal | SAP Highlights Supply Chain Management Tools | Oracle Reports Strong Profits | Manugistics Posts Third Quarter Loss But Sees License Growth | QAD Offers Improved E-Commerce Applications with Greater Flexibility and Customization Capabilities | PeopleSoft, Lawson To Resell Integration Tools | Heads Roll at Consulting Giant in Wake of SEC Investigation | Is Baan Clinically Dead? | Manhattan Associates Partners with Intentia | PeopleSoft Completes Acquisition of Vantive; Vantive CRM Applications Integrate with PeopleSoft and Other ERP Systems | Analysis of Manhattan Associates' New Partnership with CommercialWare | SAP, PeopleSoft Earnings Look Brighter; ERP Strikes Back | Great Plains on a Shopping Spree | Geac Upgrades Accounting And Human-Resources Apps -- SQL Release 6.0 Simplifies Purchasing And HR Services For Midsize Companies | Logility Signs First ASP Deal with ebaseOne | Aspen Follows Good Quarter With Internet Launch | EXE Latest Vendor to Join IBM Supply Chain Club | AspenTech Launches e-Business InitiativeFinally | MAPICS, Inc. to Acquire Pivotpoint, Expanding e-business Offerings for Mid-Sized Manufacturing Establishments | PeopleSoft Takes Aim at Foods Industry | ERP Vendors Moving to Aerospace and Defense Markets | SCT Corp Previews New B2B Planning, Execution, and eProcurement Suite | PeopleSoft Recuperating Slowly, Hoping to Sink 1999 into Oblivion Quickly | Baan Posts $236 Million Loss and Sells Off Coda for Nearly $40M Less Than It Paid | Symix Expands Its Product Offering While Remaining Profitable | Company Makes Good On B2B Collaboration | IFS Continues to Blossom | Siebel Sees Farther on Shoulders of Giants | SAP Declares Victory Over Manugistics, Takes Aim at i2 | G-Log Offers New Start For CEO, Management Team | Food Producer Files $20m Lawsuit Against Oracle | Oracle Loses Again | PeopleSoft Programs Cause Headaches at Number of Universities | Hummingbird Announces Extraction and Portal Strategy for ERP | The New Manugistics Debuts eBusiness Products | SAP Posts Solid Q499, but Warns of Q100 | Analysis of Lawson Delivering New Retail Analytic Capabilities | What's in a Name for Supply Chain Vendors? | i2 Technologies: Is the Boom Over? | ERP Vendor Lawson Software Extends to IBM's DB2 Universal Database | J.D. Edwards Teams with FRx Software to Improve Reporting Solutions | SAP and HP on the Web Together | Analysis of SAS Institute and IBM Intelligence Alliance | E-Commerce Lesson: Success Gets a Yawn, Failure Takes a Beating | Oracle is Word One at Ford | SAP's New Level of e-Commerce: mySAP.com | Intentia Floats Vaporware Agent to Replace Business Planning | BAAN Announces "Open World": Business-To-Business Collaboration Over The Internet | Lawson Plays Well With Others | B2Big Deal for IBM, Ariba, and i2 | IBM Announces Netfinity 4000R Super-Thin Server | Compaq Buys a Chunk of Inacom - But Will It Help? | The "S" in SAP Doesn't Stand for Security (that goes for PeopleSoft too) | i2 Technologies at the Front of the Supply Chain | AspenTech Searching for Definition in FY2000 | Manugistics Faces Uncertain Future | Oracle Co. - Internet Paradigm Boosts Applications Growth | SAP AG - ERP Leader with a "New Dimension" | Baan Company N.V. - Is the Worst Over? | J.D. Edwards and Numetrix Ponder the Future as One | SAP APO: Will it Fill the Gap? | Symix Sytems: Shifting SME's Focus to Their Customers | MAPICS: Will Customer Satisfaction be Enough? | Intentia: Java Evolution From AS/400 | SSA: Evolving into systems integrator to survive | JBA: Will it remain "@ctive Enterprise"? | Industri-Matematik Faces Uphill Climb | Advanced Planning and Scheduling: A Critical Part of Customer Fulfillment | Marcam Solutions: Shifting its Focus to MES | Industrial & Financial Systems, IFS AB: Thriving on Product Flexibility and Incremental Deployability | Enterprise Resources Planning (ERP) Market - Dismal 1999, the New Millennium to bring Relief (for Some) | Descartes Systems Group: Small Company With Large Ambition | Logility: Voyager in B2B Collaborative Commerce | Lawson Software: Self-Evidently Thriving on Innovations | QAD Inc.: The Art of Vertical Focus | Great Plains: Strong Channel and Microsoft focus for Dynamic(s) Growth | SAP's Dr. Peter Barth on Client/Server and Database Issues with SAP R/3 | PeopleSoft on Client/Server and Database Issues | Baan E-Commerce: a Wing, a Prayer & a Single Platform | J.D. Edwards - Creating OneWorld of Mid-sized ERP Users | PeopleSoft - Are Business Intelligence and e-Commerce Enough? | Catalyst International Ties Fate to SAP | Q: Who Wants to Marry a Multi-Billionaire? A: Baan -- Foster Care for Its Orphans Needed As Well | Geac Computer Corporation: Mastering Growth by Acquisitions | Surf's Up at Akamai |