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Editorial from the March 2001 issue of Managing Automation

Ariba Says Planning Doesn't Create Value for Exchanges

Posted on Saturday, March 22, 2008 4:58:37 PM                                  Digg This Article   Add to Delicious

Lest competitors argue-and they will-that Ariba says supply chain planning shouldn't be done in exchanges because it doesn't have an SCP solution, Marcus Ryu, Ariba's vice president of corporate strategy, points out that Ariba could have easily purchased a planning tool vendor instead of Agile Software Corp. (San Jose, CA).

Pending shareholder approval, Ariba will acquire Agile for $2.5 billion. Agile makes software that allows companies to communicate and collaborate via the Internet about new or changing product content and then source and buy the required components to make the product.

"For that price we could have bought three or four of the next-generation collaborative supply chain planning tools," Ryu says. "It was a very calculated decision not to [buy a planning vendor]. We don't believe that that is where the real value gets created."

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