Logility Inc.'s recent acquisition of Demand Management Inc. may be just the first in a series, says Logility president and CEO Mike Edenfield.
"We're still in the acquisition business," said Edenfield in an interview. "The opportunities have increased and they're going to continue increasing. There's too much technology out there for the demand and only the companies with strong financials and great customer service will survive. Demand Management wasn't in desperate straits, but there are some out there that are, and there will be more consolidation."
With the acquisition, Logility adds a product line similar to its own, focusing on supply chain forecasting and distribution requirements and operations planning. But, unlike Logility's Voyager suite, which is targeted at mid-size and Fortune 1000 companies, the Demand Management product line is sold to small and medium-size businesses (SMB). And, unlike Logility, which uses a direct sales force, Demand Management sells through value-added resellers.
Edenfield said Logility will continue to market the Demand Management products to the SMB market through its 23-company VAR network. In fact, Demand Management's reseller network was a big attraction for Logility. "In order to play in [the SMB] market, you need a distribution strategy. Demand Management has a very strong, established channel." Edenfield said Logility may attempt to strengthen and expand the reseller network in Asia.
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