Archstone Communities Implements Manugistics' Revenue Optimization Software Solution
Manugistics NetWORKS Lease/Rent Optimizer(TM) Helps to Redefine Pricing in the Apartment Industry; Archstone Expects to See Revenue Impact Beginning in 2002
ROCKVILLE, Md., and DENVER, April 17 /PRNewswire/ -- Manugistics Group, Inc. (Nasdaq: MANU), the leading global provider of Enterprise Profit Optimization(TM) (EPO) solutions, and Archstone Communities (NYSE: ASN), one of the nation's largest developers, owners and operators of apartment communities, today announced that Archstone has implemented Manugistics NetWORKS Lease/Rent Optimizer(TM) (LRO) -- a revenue optimization solution developed for the apartment industry.
According to R. Scot Sellers, Archstone Chairman and CEO, Archstone believes that once the Manugistics solution is fully implemented, it will substantially improve the company's pricing and operating capabilities. "Of all our company's innovations, I believe revenue management has the most potential to dramatically re-shape our business and our industry," said Sellers. "Moreover, LRO's demand-based pricing gives our product many more dimensions, creating a new kind of flexibility that is not currently available in the apartment industry. In this new marketplace, we can accommodate customers' move-in dates and lease term needs-rather than force the customer conform to our requirements."
LRO is currently in use at six Archstone communities in Austin, Texas, Atlanta and Denver, and the initial results have demonstrated the value of a formal revenue management process utilizing LRO. Archstone expects full portfolio implementation by year's end.
LRO enables apartment operators like Archstone to forecast demand for new and renewal leases by unit type at a level of detail virtually impossible to compile manually, and to price them to optimize revenue per unit -- striking a better balance between yield and occupancy. The software also takes into account customer preferences, market conditions, competitive behavior and company-specific capacity and revenue goals.
"LRO is well-designed to bring a much more intelligent approach to pricing in our business. We are tremendously excited about its future benefits to our company -- and our customers," said Daniel A. Amedro, chief information officer, Archstone. "Manugistics' leadership in pricing and revenue optimization across multiple industries -- coupled with its solution's history of strong, rapid return on investment and demonstrated ease of integration into our online leasing system -- made them a strong choice. The success of our initial implementation of the software is compelling evidence that our choice was the right one."
"We see tremendous opportunity for Manugistics NetWORKS Lease/Rent Optimizer in the apartment industry," said Greg Cudahy, Manugistics executive vice president, Pricing and Revenue Optimization. "This is a multi-billion dollar, highly distributed industry that is experiencing rapid transformation. Our solution uses a uniform pricing model to better enable apartment owners and managers to enhance profitability."
Manugistics is an advisory member of the National Multi Housing Council (NMHC). Based in Washington, D.C., NMHC represents the nation's leading firms participating in the apartment industry.
About Archstone Communities
Archstone Communities is a leading real estate operating company focused on the operation, development, redevelopment, acquisition and long-term ownership of apartment communities in protected markets throughout the United States. With a current total market capitalization of $5.6 billion, Archstone has a strategic national presence with 228 communities representing 70,501 units, including 7,892 units in its development pipeline, as of February 28, 2001, in markets that include 31 of the nation's 50 largest metropolitan markets.
About Manugistics Group, Inc.
Manugistics is the leading global provider of Enterprise Profit Optimization (EPO) solutions -- the first solutions to simultaneously optimize a company's supply- and demand-side functions. Manugistics EPO and eMarketplace solutions help companies lower operating costs, enhance profitability and accelerate growth. The company's list of clients includes industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Ford, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Texas Instruments, Timberland, Unilever, and United Airlines. For more information, go to manugistics.com .
For additional information regarding this announcement, contact the manugistics Newsbureau Hotline at 301-984-5330.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, competition, risks related to quarterly performance, risks of system interruption, management of potential growth, and risks of new business areas, international expansion, business combinations, and strategic alliances. A decreased demand for computer software due to weakening economic conditions, particularly in the United States economy, 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 most recently the Registration Statement on Form S-3 (Registration Statement No. 333-53918.
Manugistics is a registered trademark, and the Manugistics logo, the phrase "Leveraged Intelligence," Enterprise Profit Optimization, NetWORKS Lease/Rent Optimizer, and 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.
SOURCE Manugistics Group, Inc. and Archstone Communities
CO: Manugistics Group, Inc.; Archstone Communities
ST: Maryland, Colorado
IN: RLT CPR STW
SU: PDT
04/17/2001 14:47 EDT prnewswire.com |
