The tie-up seems to be a tactical move on both vendors’ parts, to address persistent concerns about the integration of complex supply chain applications with rapidly evolving legacy IT. As integration and supply chain vendors attempt to gain mindshare and expertise, more such deals can be expected.
Integration vendor Tibco has partnered with logistics resource management firm Arzoon.
Tibco, the integration vendor, and Arzoon, a leading provider of logistics resource management (LRM) solutions, late last month announced an alliance to deliver enterprise-wide integration, facilitate implementation and increase real-time access to logistics information.
Many companies want to build end-to-end supply chain connectivity and synchronized trading networks, but do not have the resources to invest in complete solutions – especially as integration with legacy IT is still a problem. They hope that implementing supply chain applications gradually will give them the flexibility to address immediate problems.
Last year’s terrorist attacks have also increased the pressure to invest in supply chain fulfillment solutions that deal with security, customs clearance and trade compliance issues. Enterprises need to track goods and provide audit trails at short notice, while still maintaining their ability to process orders quickly and efficiently so they can remain competitive.
The Tibco/Arzoon deal shows how vendors can address these problems. Arzoon’s online logistics solution unifies international trade, transportation management and inventory visibility on a single platform. In addition, it is significantly cheaper than larger rivals such as i2 and Manugistics. This appeals to companies that cannot afford the more expensive applications.
As well as using its larger client base to sell Arzoon’s technology, Tibco should be able to integrate Arzoon’s LRM applications seamlessly with its back and front office systems. Integrating modular supply chain solutions is complex, and as disparate trading networks (with increased collaboration and synchronization) are created, the premium on integration capabilities gets higher.
The deal also shows the importance of building vertical market-specific capabilities, to show vendors do not have a ‘one-solution-fits-all’ attitude. If Tibco’s rivals want to gain mindshare, they will have to package their products in similar ways.
This points to a vibrant market for vendors in the supply chain technology space and better deals for end-users. The development of web-native solutions, such as those offered by Arzoon, will give customers the breathing room to focus on the development of synchronized supply chain networks.
