Expert View

August 6, 2003
Manugistics eyeing Indian SCM market

Geetanjali Wadhwa & Pradeep Chakraborty

NEW DELHI & UNITED STATES -- Manugistics Group Inc. is a leader in delivering innovative supply chain and pricing software solutions. Over 1,200 clients trust Manugistics to help them reduce costs, increase revenues and enhance margins. The company provides comprehensive solutions for supply chain management (SCM), service and parts management, pricing and revenue optimisation, and supplier relationship management. Its clients include industry leaders such as AT&T, Amazon.com, Boeing, Caterpillar, Cisco Systems, Circuit City, Coca Cola Bottling, Compaq, etc. Convergence Plus met up with Ashish Pujari, regional sales director -- South East Asia, Manugistics Singapore Pte Ltd., to learn more about the company and its activities. Excerpts from the interview:

Convergence Plus: What are the implications of your agreement with Datamatics and MegaVisa?

Ashish Pujari:
Our recent agreements with Datamatics and MegaVisa clearly emphasises upon the fact that Manugistics is extremely focussed in its approach in the Indian market, very much in tune with our global market strategy. Both partners have their core domain expertise in certain industry verticals, and hence they have been chosen to represent Manugistics in those specific verticals. We have already seen significant market traction in our focus industry verticals.

CP: Have you entered into any revenue sharing arrangement with these parties?

AP:
Datamatics and MegaVisa are value-added resellers of Manugistics in the Indian market. The revenue sharing model thus, covers areas of license, training, consulting and support.

CP: What sort challenges are facing the Indian SCM environment, and how is your solution equipped to meet those?

AP:
We feel that the Indian market is dominated by four key vertical industries -- fast moving consumer goods (FMCG), oil/gas/chemicals, automotive and life-sciences. All of these industries have a mix of local giants and MNCs, either by way of Joint ventures or direct presence. The battle of the Indian turf leads to intense price competition and thus leads to cost containment through improved efficiencies and revenue maximisation through smart pricing and revenue management.

Manugistics is uniquely positioned to handle this two-pronged approach to market leadership and profitability. Our EPO (enterprise profit optimisation) solution offering combines the power of smart pricing and revenue management with SCM solution suite that fits in very well in the Indian context. Moreover, most of the large business houses have gone through the ERP curve and are looking for solutions beyond that for achieving real business value out of their IT investments. SCM solutions address exactly that.

CP: What industry verticals have you have identified in India to go after?

AP:
In the initial phase, Manugistics has decided to work with Datamatics and MegaVisa to address the needs of organisations in FMCG/retail, oil/gas/chemicals, automotive and life sciences/pharma. The future focus will include 3PL/transport and communication/high tech/electronics.

CP: Logistics is a problem in several areas of India. How is your solution going to overcome those challenges? You seem to be looking at opportunities in the logistics area as well.

AP:
Our point of view is that the logistics business area in India is going through a huge change with new infrastructure being created to support the local industry growth. Our approach will be to get the house in order, first with SCM tools, and then look beyond the enterprise for further optimisation. Our relationship with MegaVisa is significant in this context due to its experience and domain knowledge in this arena. Our solutions for global transportation management, collaboration, and order management are designed to address the specific needs in the area of logistics. These are proven solutions and have been used in numerous companies globally. The Indian market will benefit with the industry best practices that have been deeply incorporated in our solutions.

CP: How does your solution compare against say, MatrixOne, or even Ariba?

AP:
They are in a completely different space and their solutions complement ours. We have common global clients.

Contact:
Manugistics Group Inc.

Tel: +1-301-255-5330
Email: ljanes@manu.com
www.manugistics.com



Ashish Pujari, Regional Sales Director -- South East Asia, Manugistics Singapore Pte Ltd.

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