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E2open Leads Supply Chain-SRM SaaS Market, Deploying and Operating More Systems Than Any Other Company

6 December 2005

E2open, the leading provider of software and services for visibility and control over distributed global supply networks, today announced that it has deployed and currently operates more supply chain and supplier relationship management (SRM) systems in a software-as-a-service (SaaS) model than any other vendor in the world. E2open currently powers over 50 supply chain information hubs, sometimes referred to as "eHubs," for leading companies in the electronics, aerospace and defense, and automotive industries, connecting more than 12,000 trading partners and 45,000 users.
The supply chain-SRM market addresses both internal and external processes. Internal processes such as advanced planning and scheduling, demand shaping and factory optimization have been the realm of traditional on- premises enterprise software. There is growing evidence that external processes that give visibility and control over extended supply networks, such as vendor-managed inventory, supply-demand synchronization and procure-to-pay, can be managed more cost- and time-effectively and with higher data quality by inter-enterprise software in a SaaS model. AMR Research describes this concept as "inter-enterprise services."
"What's needed is to create a whole host of inter-enterprise services and make them available as part of a Business Process Network (BPN)," said Bruce Richardson in the AMR Research Alert, November 3, 2005. "My list includes Vendor-Managed Inventory (VMI), global sourcing, Global Trade Management (GTM), trade promotion management, campaign management, New Product Development and Introduction (NPDI), design collaboration and RoHS/WEEE compliance management."
The deployment of SaaS solutions for supply chain-SRM is a growing trend uncovered in a recent AMR study of the supply chain management (SCM) market. According to Lora Cecere in the AMR Research Alert, August 17, 2005, "In 2004, 6% of SCM applications were hosted; in this study, 26% of respondents indicate that they will be considering Software-as-a-Service (SaaS) applications."
With more than 50 customer hubs in production, E2open is the clear market leader in the supply chain-SRM SaaS market. In this position, E2open has defined the required architecture for visibility and control over distributed global networks. This architecture incorporates multiple software capabilities with their deployment and their operations as one integrated solution designed for rapid deployment and change at minimum cost and risk:
* Software capabilities include process management, analytics and
decision support, event management, any-to-any integration
infrastructure and mission-critical operations management.
* Deployment includes business performance definition, solution
definition and deployment, operating unit on-boarding, trading
partner on-boarding, operations preparation and program management.
* Operations includes service level measurement and reporting, global
support, solution management, software computing environment,
hardware computing environment, physical environment and Internet
bandwidth management.
In a separate release today E2open announced that Tyco Electronics, the world's largest supplier of passive electronic components for the automotive industry, chose E2open to enable its suppliers to have access to real-time demand. By using E2open, Tyco Electronics is providing its suppliers with a schedule-sharing process where suppliers benefit from forecast and firm delivery schedules, and Tyco Electronics obtains the suppliers' response in a closed-loop process. E2open provides Tyco Electronics with an "early warning" system that enables visibility and control over its global supply chain network, automating Tyco Electronics' communication with suppliers. E2open software is integrated with Tyco Electronics' SAP ERP software to seamlessly automate communication between the company and its suppliers.
"E2open teamed very effectively with Tyco Electronics," said Ron Vance, vice president and CIO, Tyco Electronics. "E2open's software-as-a-service approach proved to be a project accelerator and reduced both risks and resource requirements."
"E2open now leads the supply chain-SRM SaaS market," said Greg Clark, E2open president and CEO. "With the past year's doubling of our customer base and the world's most extensive experience deploying these systems, E2open has proven the value of its unique solution architecture."
About E2open
E2open is the leading provider of software and services for visibility and control over distributed global supply networks. Its largest customers include leaders such as Agere, Hitachi, IBM, LG Electronics, Matsushita Electric Industrial (Panasonic), Seagate Technology, Solectron, Tyco Electronics and Wistron. With E2open companies reduce direct materials costs, increase supply assurance, reduce buffer inventories, and improve operational efficiencies. E2open solutions are used to manage inter-company processes such as inventory management, order management, demand/supply synchronization, spend consolidation, logistics visibility, manufacturing visibility, material composition declaration for WEEE/RoHS, and multi-tier visibility -- integrating trading partners across multiple tiers of distributed global supply and demand networks. Over 12,000 companies worldwide currently use E2open. Headquartered in Redwood City, Calif., E2open is a privately held company. Further information can be found at http://www.E2open.com.