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Technology Stocks : Supply Chain Management Software
MANU 15.87-0.8%3:05 PM EST
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To: felix who wrote (50)8/1/1997 9:33:00 AM
From: Tom Smith   of 86
 
felix,

If you read Oracle's marketing propaganda, they claim that they already have SCM functions built into their manufacturing applications. I work with these apps and I can tell you that Oracle is simply blowing smoke here. What they currently offer are relatively discreet applications for purchasing, inventory tracking, and accounts receivable. There is some level of integration between these apps, but nothing that approaches the level of forecasting and transportation planning capability that a full-fledged SCM solution must provide.

Some marketing VP at Oracle apparently decided that his sales folks, with straight faces, could manage to pitch this collection of apps as an SCM solution. No way that pitch will succeed long-term. I can't say whether SAP or BAAN are attempting a similar charade or not since I don't work with their software and have not seen their marketing material. PSFT is the only ERP vendor that offers a real SCM solution since they acquired Red Pepper last year.

Companies like MANU, ITWO and AMSWA offer true SCM solutions because they have incorporated the complex algorithms necessary to produce forecasts based on historical data. They serve a growing niche that can not be easily consumed by the ERP vendors.

Tom
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