Supply Chain Management Providers Enjoy Boost in Sales

Two recent reports show that supply chain management software grew in this first quarter of the year. Manufacturers and other businesses bought the software in growing numbers as an upstart economy freed up budget dollars for improvement initiatives.

The two recent reports were from Supply Chain Management and ERP vendors and in them JDA Software reported revenue for the fourth quarter ending Dec. 31, 2010 of $168.8 million. That far exceeds the $107.1 million it took in for the fourth quarter of 2009.

The 58 percent increase in revenue from JDA’s supply chain management products and services came mainly at the hand of its i2 Technologies’ subsidiary. They have long been a rival in the supply chain management software market until JDA acquired them in 2010.

JDA still managed to improve its supply chain management and related sales by 6 percent over the final quarter of 2009, even stripped of the i2 boost. They took in $113.9 million in revenue in the final quarter of 2009.

In announcing all of the recent results, JDA also said that it intends to grow its presence in the supply chain management market, expecting double-digit sales growth each year on its way to becoming a billion dollar company.

Total revenue in 2010 was $617.2 million for JDA and they continue to predict strong demand for supply chain management products in 2011.

On a smaller scale, CDC Software indicated that buyers in the fourth quarter purchased one of its supply chain management packages in greater numbers. CDC Software is an ERP and supply chain management provider also.

Previewing its fourth-quarter results, CDC said its TradeBeam global trade management offerings demonstrated solid growth in sales during the fourth quarter of 2010 but did not divulge the full results.

Supply Chain Agreement Reached Between Total Kenya and DHL

Recently, Total Kenya and DHL Supply Chain announced they have signed a three-year supply chain contract covering diesel, petrol, lubricants and LPG gas.

The contract also allows DHL Supply Chain personnel to use the Total Bon Voyage card for purchasing petroleum products from the network. There are more than 160 Total service stations throughout Kenya.

The supply chain card system eliminates cash payments and helps DHL Supply Chain with the tracking of movements of their vehicles and with general fleet management.

The Managing Director of Total Kenya Limited, Alexis Vovk, and the Operations Director of DHL Supply Chain, Ben Clay, signed the three year contract at a ceremony held in the DHL Supply Chain Regional Office located at the Nairobi Business Park, Ngong Road in Central Africa.

DHL Supply Chain is a full subsidiary of German multinational Deutsche Post DHL. They are the largest supply chain management and logistics service provider in Kenya providing solutions in inbound and outbound logistics, warehousing and distribution, as well as reverse logistics.

During the signing ceremony in Africa, Vovk repeated Total Kenya’s commitment to the provision of quality products and services. He stated that the company will be operating responsibly and in an innovative way.

Total Kenya will offer value to all of their partners in general and commercial business in particular, as a way of helping them grow their businesses sustainably.

This agreement between the two companies not only extends the capabilities of the supply chain, it also helps to strengthen the brand for both providers as this contract will have far-reaching implications. As long as it is handled with a quality approach to service, everyone is bound to win.

Supply Chain Excellence Results from DEX, DHL Partnership

DEX and DHL Supply Chain have agreed to a partnership deal. The merger will provide end-to-end technical services for service parts, finished goods and parts management to new and existing customers across all sectors.

DEX delivers innovative supply chain solutions to clients by leveraging expertise in consulting, engineering, software, systems, and operations.

Founded in 1980, DEX offers four types of business services addressing all aspects of supply chain management. The company has facilities in the Eastern and Western U.S., as well as in Europe and Asia.

DHL manages the supply chains for 200+technology, electronics and engineering companies. They are devoted to expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers.

The joining of DEX and DHL will give the customer exemplary customer service and technical support and will reduce turnaround time of services by as much as five days.

Sheldon Malhicoff, Chairman and CEO of DEX, says that in addition, the combination of the two companies will allow them to deliver customers a fully integrated operation of service parts, finished goods and parts management.

The expertise of DEX and the capabilities of DHL will bring customers a reduction in transportation time and costs, as well as outstanding repair capabilities to DHL’s customers on a worldwide basis.

The operation will use the DEX IT system with its suite of software modules that will give DHL customers a full vision of the reverse logistics of their operation. It will include inventory statistics engineering data, failure analysis and parts consumption data.

The companies are both eager to see results of their merger and to keep providing customers with exceptional solutions in supply chain innovations.

Brightpoint Brings Wireless Supply Chain Services to Poland

Brightpoint, the Indianapolis, Indiana-based company has re-entered the market in Poland. The company has expanded its wireless supply chain service capabilities and is now able to better serve its partners in that eastern European nation.

The move was prompted, at least in part, by the introduction of a new and more sophisticated mobile gadgets which are now available there. The combination of the new devices, along with over-the-air technology and a faster mobile network with larger bandwidth is a much needed service for those customers throughout Poland.

Brightpoint will also focus on the need to develop the mobile business for its channel and vendor partners. They will now offer expanded product and service offerings which will include an advanced E-toolbox with white-label Web shops as well as procurement services. This product will offer forecast and demand planning tools also.

Brightpoint recognizes that its customers need a broader range of value-added services and the decision to re-enter Poland is part of their global strategic plan to expand their geographical footprint. Brightpoint officials have shared that the company is aware that Poland is one of the largest markets in Europe and that they have a growing demand for wireless devices.

The company will provide its supply chain services to both vendors and the channels and thus reinforce their position as a leading provider of value-added logistics and distribution services in Europe, according to Anurag Gupta, the president in Europe, Middle East and Africa.

As the demand for innovative supply chains continues to increase in international markets, opportunities for companies like Brightpoint continue to grow. At the same time, competition demands that companies take innovation and leverage key platforms to drive visibility and success. An inability to do so will quickly render a supply chain competitor ineffective.

Apple Lines Up New Supply Chain Partners for iPhone, iPad

Now that the iPhone 4 has landed on the Verizon network, demand for the popular smartphone is sure to increase. With Apple’s dominance in the smartphone market, as well as its leadership in tablet computers, the company is focused on refreshing its products in order to maintain its strong market positioning.

As a result, supply chain sources indicate that Apple has already lined up four new component suppliers for the iPhone 5, the latest in the line of iPhones scheduled to launch summer of 2011. Considering the overwhelming demand for the iPhone 4 in June of 2010, supply chain partners will have to prove their worth.

According to the Taiwanese trade publication, DigiTimes, Apple is also bolstering its printed circuit board supply chain as it prepares for the next iPad release. Apple once relied on just three printed circuit board suppliers to meet manufacturing demand for the iPad; the company has now boosted that number to seven.

This growth in the company’s supply chain efforts shouldn’t be a surprise for the industry, given that Apple sold 14.8 million iPads in 2010. According to the DigiTimes, the company is scheduled to begin small volume shipments next month, with a full-blown launch in April. As the company sets its sights on a refresh cycle, a spring launch will be perfectly timed to meet strong demand.

Always focused on innovation and improving upon successful products, Apple has some new ideas for the iPad 2, including a thinner design. The manufacturing will be the same unibody design the company uses for the MacBook and will feature an LCD backlit display, Facetime video chat support and a front-facing camera. The iPad 2 is also expected to be powered by multimode chips from Qualcomm and to run on GSM and CDMA-based networks.