Wednesday, May 31, 2006

Downsizing in the Supply Chain Planning (SCP) Market


Vendors in the supply chain-planning (SCP) segment are looking at a dreary sales environment through 2006. And even as this market starts to rebound, vendors are facing a drastically different sales environment, one with fewer overall prospects, considerably smaller deal sizes, and very conservative technology buyers. The SCP vendors, namely i2 Technologies and Manugistics, have been forced to downsize (in i2's case), or be acquired (in Manugistics' case), in order to survive. This market is not expected to rebound to the levels of the late 1990s; in fact, the sales landscape has permanently changed. Technology buyers are being very selective and have ruled out the multi-million dollar suite-sized implementations of the past.

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