Wednesday, October 08, 2003

PeopleSoft strengthens its manufacturing offerings by acquiring Demand Flow

At the APICS International conference this week, PeopleSoft (PSFT) announced it has acquired JCIT's patented Demand Flow software, a product based on lean manufacturing concepts. PeopleSoft will integrate Demand Flow with PeopleSoft's supply chain offerings. The acquisition is consistent with PeopleSoft's intent over the past year to become a serious player in manufacturing and supply chain management, by hiring industry experts such as Patrick Quirk out of i2 and Carol Ptak, past president and CEO of APICS. Ptak in particular has been positioning PeopleSoft's manufacturing offerings in the larger context of demand-driven planning and execution. She says, "Companies that focus internally on inventory and cost can no longer compete. Manufacturers must become demand-driven to survive." Acquiring Demand Flow puts more muscle behind that message.

PeopleSoft's press release does not indicate whether that means Demand Flow will be integrated with the J.D. Edwards products as well as with PeopleSoft Enterprise, but that would surely make a lot of sense. JDE has more current clients in the manufacturing sector, which would provide quicker cross selling opportunities for the Demand Flow offering.

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