Oracle yesterday announced that it intends to expand its capabilities in supply chain planning by acquiring Demantra, the demand-driven planning applications developer.
Demantra, which provides systems for forecasting, demand management, sales and operations planning, and so-called trade promotion planning and optimisation, has been growing in prominence in recent years.
In fact, most recently the firm exceeded its first quarter license revenue goals by 45% making Q1 2006 its best quarter ever. License revenue grew by 178% over Q1 2005. Total revenue for Q1 2006 grew by 67% over the same period last year.
The reason: Demantra’s algorithms and analytics have been growing in sophistication and falling in cost with the general improvements in IT. So it’s been appealing to increasingly savvy potential users in a range of global markets faced with supply chain competition, cost and performance issues – and wanting better end-to-end collaboration.
Oracle says that, when combined with its existing supply chain and ERP applications, users can expect to be able to “more proactively manage complex, global supply chain operations.” It also suggests they will get reduced ‘cost of ownership’, while “increasing their ability to operate an integrated, information-driven enterprise.”
Says Oracle Senior Vice President of Applications Development Rick Jewell: “Oracle and Demantra’s complementary products will deliver information-rich, adaptive business processes to enable an effective, demand-driven supply chain. We are giving customers access to proven, best-in-class demand and supply chain capabilities, combined with comprehensive ERP applications and technology infrastructure.”
The deal, details of where were not disclosed, is expected to close this month.