Homepage Manugistics Australia newsroom

Demand and revenue management to assist customers in Australia and New Zealand

Announcement posted by Manugistics Australia 13 Sep 2003

Cap Gemini Ernst & Young and Manugistics partner to meet growing customer demand for supply and demand chain solutions
Cap Gemini Ernst & Young and Manugistics Group, Inc. (Nasdaq: MANU), today announced a strategic alliance to provide customers with Demand and Revenue Management (DRM) and Supply Chain Management (SCM) technologies in Australia and New Zealand (ANZ).

Under the alliance, Cap Gemini Ernst & Young will implement both Manugistics' DRM and SCM technologies to the growing market of ANZ enterprises looking to invest in supply and demand chain management solutions.

In using DRM, enterprises can influence demand through optimal pricing decisions. Using customer data gained though projects such as Customer Relationship Management (CRM), they are able to determine the desired level of demand, align supply to it, and then optimise around the contribution that the sales make to margins.

In March 2003, Nucleus research found that US companies using components of Manugistics' DRM solution reported net revenue can increase by 2.5 - 7.5 percent. In the US, DRM is commonly implemented as a complementary technology to SCM and CRM.

"Together, Supply Chain Management and Demand and Revenue Management solutions can improve the efficiency of both an organisations' supply and demand chain," said Tim Moylan, Managing Director, Manugistics, Australia and New Zealand.

"Combined with Supply Chain Management, Demand and Revenue Management gives organisations a tool to drive revenue, and most importantly, to do this without too much further investment. Through this alliance, customers can reap a significant return on investment from Demand and Revenue Management, often in less than one year," he said.

"Many companies realise that in order to grow the business and increase revenues, there are limits to expenditure reductions. Leading companies are now placing a great deal of focus in the area of revenue and margin management and are investing in analytics and technology solutions which provide this decision making capability," said James Hunter, Vice President, Cap Gemini Ernst & Young, Australia.

"Many companies are recognising that if they do not do this, they will run the risk of finding themselves lagging behind their competitors. Adopting Demand and Revenue Management enables organisations to fully leverage their customer information, build multiple pricing scenarios and rapidly model a series of pricing decisions which result in optimal and profitable pricing decisions."

Hunter added, "Working in partnership with Manugistics in other regions, we have been able to undertake detailed DRM analysis for large companies in a period of four-to-eight weeks. The outputs from the analysis include very clear revenue increases, margin impacts and timeframes or plans to realisation."

Originating in the airline industry, Manugistics' DRM technology has been adopted globally across a range of industries and includes many leading companies such as: Continental Airlines Cargo, Delta Airlines, DHL Aviation, El Al Israel Airlines, Fairchild Semiconductor, Ford Motor Company, Omni Hotels, Princess Cruises, Thomson Holidays, and United Parcel Service.

-ENDS-


About Cap Gemini Ernst & Young
The Cap Gemini Ernst & Young Group is one of the world's largest providers of Consulting, Technology and Outsourcing services. The company helps businesses implement growth strategies and leverage technology. The organisation employs approximately 52,700 people worldwide and reported 2002 global revenues of 7,047 billion euros. More information about individual service lines, offices and research is available at www.asiapacific.cgey.com.

About Manugistics Group, Inc.
Manugistics is a leader in delivering innovative supply and demand chain optimisation software solutions. Today, more than 1,200 clients trust Manugistics to help them reduce costs, increase revenues and enhance margins. The company provides comprehensive solutions for supply chain management, service and parts management, demand and revenue optimisation, and supplier relationship management. Manugistics has offices in Australia, Belgium, Brazil, France, Germany, Hong Kong, Japan, The Netherlands, Singapore, Spain, Sweden, The People's Republic of China, the United Kingdom and United States. Its clients include industry leaders such as AT&T, Airgas, BMW, Boeing, Brown & Williamson, Caterpillar, Cisco Systems, Circuit City, Coca-Cola Bottling, Continental Airlines, Diageo, DuPont, Fairchild Semiconductor, Ford Motor Company, Harley-Davidson, Nestle, RadioShack, Smith & Nephew and Unilever. For more information, please go to www.manugistics.com.au

FORWARD LOOKING STATEMENT
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, continuing economic and political uncertainty, the timing and degree of business recovery, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, unexpected competition, risks related to quarterly performance, risks of new business areas, international expansion, business combinations and strategic alliances, lengthening of sales cycles for software products and services, and the effectiveness of the cost reduction efforts undertaken by Manugistics and their impact on the company's ability to operate its business. A decreased demand for enterprise application software due to weakened economic conditions could result in decreased revenues or lower revenue growth rates. More information about factors that potentially could affect Manugistics' financial results is included in Manugistics filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended February 28, 2003. Manugistics assumes no obligation to update the forward-looking information contained in this announcement. USE UPDATED LANGUAGE
Manugistics is a registered trademark, and the Manugistics logo, the phrase "Leveraged Intelligence," Enterprise Profit Optimization and Manugistics NetWORKS are trademarks of Manugistics, Inc. All other product or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.