October 2002

Manhattan Associates, the leading global supply-chain systems supplier and one of the UK's front runners, is acquiring the assets of US-based Logistics.com in a deal expected to cost it $20 million. The company says this will extend its capabilities in the transport management field, augmenting its already strong presence in warehouse management and supply-chain execution systems.

Speaking from Atlanta, senior vice-president Eric Peters told e.logistics Magazine: "It's an excellent fit with Manhattan, and will help push us firmly into the transportation management space." Analysts agree; AMR Research reckons that Manhattan "will now have a competitive TMS system with historically strong sales execution that will require competitors to reassess their strategies."

Eric Peters says Manhattan will probably retain strong Logistics.com brand names such as OptiBid (a procurement solution), OptiYield (a decision support solution for carriers and own-account fleets) and OptiManage (a planning and execution system), although the business itself will be assimilated into Manhattan's.

Logistics.com dates back ten years, and has an established portfolio of transport management solutions and a strong customer base that includes blue-chip US-based companies such as Bridgestone/Firestone, Compaq Computer, Colgate-Palmolive, Menlo Logistics, Schenker/BTL and Wal-Mart.

There is good platform compatibility between the companies' ranges; Logistics.com's range is built round an Oracle database and has Unix architecture, echoing Manhattan's open approach. It has evolved as an outsourced ASP solution, which differs from Manhattan's, but a licensed option was added this year. Peters says the ASP model will also be retained, since it is ideal for customers on the AS/400 (I-series) platform.

As Logistics.com the company sprang to prominence at the height of the dotcom boom, acquiring QuoteShip.com, which had an established presence in ocean, air and "spot market" freight transport provision. But latterly, under ownership of the Internet Capital Group, it struggled to maintain profitability as US IT spending dipped.

John Lanigan, Logistics.com's chief executive, says he believes "our people, products and customers will enhance Manhattan's leadership position."

Like many IT suppliers emerging from the WMS market, Manhattan has been moving steadily out into mainstream supply-chain management, partly by internal growth and partly through acquisition. The Logistics.com business will boost its presence in this market significantly, as well as providing opportunities to accelerate the development of an enhanced end-to-end supply-chain offering.