Manugistics acquires Western Data Systems

Here’s an interesting one. Manugistics, which puts itself about as the ‘enterprise profit optimisation’ software firm, but in our world is the supply chain and advanced planning and scheduling (APS) systems developer and Theory of Constraints (TOC) specialist, has acquired Western Data Systems (WDS), another APS/TOC specialist. The deal was for cash and stock. APS/TOC is gathering momentum. And with this scale of expertise, software and near global support now ranged before them, manufacturers have an excellent opportunity to drive very significant WIP and inventory cost reductions, profitability increases and customer service improvements through these technologies and initiatives. WDS, based in California, but with offices over here and with revenues last year of $28 million, was privately-held. It brings Manugistics a substantial aerospace and defence client base with more than 135 organisations and 33,000 users world-wide. Major users include BAE Systems, Boeing, GKN Aerospace, Lockheed Martin, Norshipco, Northrop Grumman, Sikorsky and Smiths Aerospace. But it also brings industry expertise as well as wide additional functionality specifically for optimising complex service and parts management. The latter features everything from predictive system failure forecasting and parts optimisation, to finite capacity and labour resource scheduling, as well as full MRO (maintenance, repair and overhaul) shop planning and execution, and direct materials purchasing. We’re looking at an overall suite capability from the firm that should allow you to do everything from optimising machine availability, to spares and direct materials purchasing and on out again to inventory management and production scheduling and ultimately demand and logistics management, all with TOC thinking. As Greg Owens, chairman and CEO of Manugistics, says: “The acquisition of WDS brings Manugistics important clients, deep expertise and proven technology... This will also help to drive our service and parts management suite across automotive, aviation, communications, high technology, transportation and other asset-intensive sectors.” All that remains is for Manugistics to buy an ERP system vendor and this could be an organisation with a very full set of cards.