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To: Bill Harmond who wrote (13640)	8/26/2002 12:28:44 PM
From: Lizzie Tudor	Respond to of 57684

re: "spend management" There's something I don't get about all these additions to the original ariba purchasing software (thats what this spend management sounds like, the same with supplier enablement, more things to help you qualify vendors for the purchasing process). I thought we learned that companies have LT relationships with some suppliers and those are hard to quantify with technology so the notion of global sourcing didn't have the bite it needed to be a major space. Besides you have the logistics issues of delivery of the widget so some vendors are eliminated just on the basis of proximity. Otoh, pricing optimization as a space, which is the manugistics EPO suite, is something everybody needs now. This is just deciding how far down you can chop prices before taking a loss (or hitting your GM targets to the up or downside) on the transaction or specific fiscal period. Manugistics was able to sell this even in an awful mkt and they aren't the sales engine that even ariba is. Why don't these companies move away from purchasing and hit pricing? All I can conclude is that they don't want to develop the analytics expertise which is a bunch of mathematicians, bur resistance is futile. I won't be buying any more software companies that only do purchasing. L