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PeopleSoft revamps supply chain software

PeopleSoft will launch supply chain planning software in May in a renewed effort to win market share from rivals including Oracle and JD Edwards.

PeopleSoft had failed to integrate technology it acquired with its purchase of supply chain specialist Red Pepper in 1996, said Patrick Walravens, managing director and senior analyst at investment bank JMP Securities.

However, PeopleSoft has rewritten Red Pepper's products using its own application development tools and will launch it at PeopleSoft's Leadership Summit in Las Vegas in May.

The software will have special features for companies that outsource manufacturing tasks. It will also offer extensive analytic capabilities that link with PeopleSoft's Enterprise Warehouse business intelligence application, said Walravens.

Supply chain planning is a "significant potential growth area" for PeopleSoft, since the supplier has very little presence in the area today. PeopleSoft has set itself a goal to become the world's number-two SCM (supply chain management), behind SAP.

PeopleSoft plans to increase its sales team by 150 people this year with the US getting half, according to Walravens.

SCM software is meant to help enterprises run their supply chain more efficiently with the goal of reducing inventory and cost. The two main types of SCM software are planning applications and execution applications.

Planning applications help determine the best way to place an order, while execution applications track the flow of goods, manage related materials and equipment and handle financial information of the transactions.


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