Latest "Real ROI" Report From Nucleus Research Provides Customer Insight Into Effectiveness of Supply Chain Management Solutions

Nucleus Research (NucleusResearch.com), the leading provider of bottom-line focused technology research, today announced the results of an independent study of Manugistics Group, Inc. (Nasdaq: MANU), a company focused on supply chain management solutions. According to the results, eighty percent of customers interviewed by Nucleus Research achieved a positive return on investment (ROI) from their Manugistics deployment. The report is available at NucleusResearch.com.

The Real ROI from Manugistics

The report is the latest in Nucleus Research's "Real ROI" series, which most recently has included reports on i2, Siebel and Cognos. As is Nucleus normal practice, Real ROI reports are based on in-depth interviews with customers of a specific technology solution – without the vendor's knowledge. The reports provide Nucleus clients with a clear, unbiased view of the benefits, costs, deployment challenges and best practices associated with deploying a particular technology solution.

In the Real ROI from Manugistics, Nucleus explored the key benefit drivers of the solution – as well as deployment factors. Nucleus found that sixty-five percent of Manugistics customers completed their deployments on time, and sixty percent met their initial implementation budget.

Study Methodology

Nucleus reviewed the Manugistics Web site, online technology publications and discussion forums, and print journals to identify companies having deployed Manugistics software. Nucleus identified 100 customers and contacted each one:

• Twenty companies agreed to participate in interviews.
• Twenty-two companies declined to participate for various reasons.
• Fifty-eight companies did not respond to repeated requests for interviews.

Nucleus has included the data from all customer interviews in this report. The majority of companies provided details of their deployments on condition of anonymity. As part of its research, Nucleus found five primary areas of benefit for customers using Manugistics solutions: reduced inventory, reduced order-to-fulfillment cycle time, increased productivity, increased revenue, and savings in operational costs.

Reduced Inventory

Significant returns to organizations have resulted from efficient management of inventories. The introduction of automated planning capabilities led to sharp improvements in the accuracy of demand and supply forecasts, and sixty-four percent of companies reported significant net reductions in inventory costs from 9.5 to 50 percent. The majority of these companies were confident that more efficient management of inventories led to a positive ROI for their deployments.

Reduced Order-to-Fulfillment Cycle Time

Many companies could increase customer service levels or maintain existing standards of customer service while aggressively adding products to their catalogs after they began using supply chain management and planning software from Manugistics. Transitioning from a monthly forecasting cycle to a weekly cycle using the software also provided strong benefits.

Increased User Productivity

Workers were able to improve the quality of their analysis and forecasting because they had faster access to standardized data. Numerous companies were able to achieve a direct reduction in headcount or reassign workers to different roles within the supply chain organization.

Increased Revenue

A majority of Manugistic's customers experienced improvements in revenue for the division or business segment using Manugistics since deployment. Net improvements in revenue management and profit optimization ranged from 2.5 to 7.5 percent of net revenue

Savings in Operational Cost

Companies using Manugistics either reduced or eliminated costs of different processes or engagements at different points along the supply chains and practiced cost management in areas that couldn't be scrutinized before

This report is available at no charge at www.NucleusResearch.com.

About Nucleus Research

Nucleus Research is an independent global research and advisory firm that provides CFOs and CIOs with the financial and technology insight they need to make clear, accurate assessments of the returns from their technology investment. The company is the first firm of its kind to blend financial analysis with comprehensive technology expertise to deliver 100% impartial return-on-investment (ROI) information to organizations worldwide. Nucleus Research uses an uncompromising set of processes and tools to evaluate the financial return on IT assets throughout a technology's life cycle, from selection and deployment to upgrade and retirement. Nucleus Research's ROI assessment methodology can be applied to virtually any technology investment.