Supply-Chain Technology Provides Excellent Growth Opportunities for Investors, According to Bear Stearns
Ed Wolfe Initiates Coverage on an Integral Link in Today's Economy
biz.yahoo.com
NEW YORK--(BUSINESS WIRE)--Feb. 13, 2001--Every industry has a supply chain and every company within that industry can benefit when the supply chain is improved. It is under that premise that Edward Wolfe, senior managing director and airfreight, logistics and ground transportation analyst at Bear Stearns, has initiated coverage of the supply-chain technology industry. Supply-chain technology companies help their customers reduce costs, optimize efficiency and maximize profits. ``As companies look to increase profits, many realize they must improve their supply chain. There is a tremendous opportunity for companies that can help them accomplish that goal,'' said Wolfe.
The Importance of Supply-Chain Technology
Supply-chain technology can help companies maximize profits in a number of concrete ways, according to Wolfe's new report. For example, software, middleware, and Internet hosted applications that help companies ship and warehouse products as efficiently as possible can be used to:
Optimize routing and scheduling applications in real time to reduce empty or ``dead head'' miles when trailers travel without a payload.
Combine partial or smaller loads into single trailers to optimize each run.
Allow small buyers to come together via the Web to achieve larger shipments at better prices.
Plan the layout and location of warehouses and track incoming and outgoing warehouse movements in order to improve inventory velocity.
Increase collaboration and visibility up and down the supply chain with suppliers, partners and customers to reduce waste, improve cash flow and improve asset turnover.
A Natural Progression
For Wolfe, covering supply-chain technology is a natural progression from his position as a top-ranked airfreight, logistics and ground transportation analyst. The companies within those industries are at the heart of the supply chain and fully understand the intricacies of supply-chain technology. ``After all,'' Wolfe asks. ``Who is better equipped to understand the direction of warehouses and transportation management systems than airfreight, logistics and ground transportation companies that collectively run thousands of warehouses, planes and trucks around the globe?''
Countercyclical Companies
Wolfe believes the supply-chain technology industry has great potential, faces little risk of a downturn and could possibly do better in times when the overall economy is forcing companies to slash expenses. ``Whether the economy is strong or weak, companies are always interested in saving money,'' Wolfe said. ``And that desire to cut costs plays right into the hands of the supply-chain technology industry.''
Stock Selections
Wolfe has initiated coverage on four companies within the supply-chain execution space. Two companies which focus on the warehouse management systems and fulfillment markets, EXE Technologies (EXEE) and Manhattan Associates (MANH), are rated buy. Two companies that primarily focus on transportation management systems, Descartes (DSGX) and Vastera (VAST), are rated neutral. |
