Edge Dynamics, a maker of B2B commerce software, today unveiled product enhancements that it said doubles the functionality of its application platform and adds an analytical engine that enables real-time in-line analysis of transactional activity.
Called Edge Dynamics 3.0, the new release is aimed primarily at the pharmaceutical industry, which is undergoing fundamental changes to the structure of its distribution channel. Wholesalers, for instance, have implemented new fee-for-service agreements to generate revenue from the services they provide. As a result, pharmaceutical makers need more effective ways to manage product distribution, Edge Dynamic said.
Enter Release 3.0, which Edge Dynamics calls as a channel commerce management solution to complement existing ERP, SCM and CRM applications. The software is designed to help drug manufacturers anticipate channel commerce activities and respond to them proactively, said John McGrory, president and CEO of Edge Dynamics. (See company profile.)
"Basically we ... sell an enterprise software product to manufacturers so they can manage and optimize their incoming order streams in order to control their channels, enforce regulatory compliance and help with patient safety issues," McGrory said in an interview with Managing Automation.
The analytics engine -- the biggest addition to the platform -- is said to be unique in that it provides business intelligence based on the user company's proprietary data models. There are more than 100 preconfigured reports that users can use to understand the channel historically as well as position the pharmaceutical maker to take proactive action.
Four other key elements include:
- Continuous scorecarding, which provides a real-time view of every transaction received. It is updated constantly and is based on 50 new scorecarding performance metrics to determine compensation;
- A transaction dispositioning component, which is a consolidated interface to help users review orders and make adjustments;
- A 300% capacity increase to ensure downstream channel data along with other information sources such as RFID or point-of-sale data can be included in transaction evaluations;
- An SAP connector with pre-built integration scenarios for specific channel commerce processes such as order management. More than 80% of pharmaceutical companies have SAP in the backoffice, McGrory said.
Beta testers have found the software allows them to manage inventory agreements better. Clint Burrus, executive vice president of managed markets at King Pharmaceuticals (Blountville, TN), said his company is using the technology as part of a proactive initiative. "King previously experienced highly variable inventory levels in our distribution channel. By enabling us to continuously analyze and monitor our transactions in real time, the Edge Dynamics ... solution should provide us better channel visibility and should enable us to more effectively review compliance with our inventory management agreements," he said, in a statement.
Effective channel management has become a mission-critical capability for pharmaceutical as well as industries that rely on multi-tier distribution, according to a research brief by Aberdeen Group (Boston). The root cause of up to 50% of supply chain and channel inefficiencies is inferior decision-making at the time of the initial order, Aberdeen's research found.
"Edge Dynamics has developed and deployed a solution based on accessing all relevant real-time orders and EDI-and web-accessible information from customers and trading partners across the value chain -- prior to accepting an order," the report noted. "The solution's key differentiation is its ability to access all historical and current data to take a concise 'picture' of the state of the channel in all its demand and distribution attributes and to determine the optimal course of action for the manufacturers -- prior to commitments made to the customer or supply operation."
Pricing for Edge Dynamics 3.0 was not disclosed. However, company officials claimed that companies using the software can expect to boost revenues by 1% and profits by 5%. Versions for other life science industries as well as consumer goods and technology manufacturing sectors are expected to roll out in the next few years.