Navy Chooses Manugistics to Keep Supply Chain Moving

By Nick Wakeman, Senior Editor




SEPT. 13 ? The Navy has picked Manugistics Group Inc. of Rockville, Md., to provide supply chain management solutions to the Naval Transportation Support Center.



The win is the latest in a series of government-related moves by Manugistics as the software developer increases its focus on the public-sector market.



In early August, the Defense Logistics Agency awarded a $390 million contract to a team led by Andersen Consulting that includes Manugistics as a significant player.



The company also received its General Services Administration schedule in June to sell its supply chain management solution.



This latest win with the Navy is part of a larger project that will be announced within the next month, said Jeff Holmes, senior vice president of strategic solutions and alliances for Manugistics.



The value of the Navy project was not disclosed because Manugistics is in a quiet period until after its earnings are announced Sept. 21.



The Naval Transportation Support Center supports Navy logistics efforts and the movement of supplies around the world.



Under the Navy contract, Manugistics will help create a global transportation network to improve customer service and cut costs. The system will allow the Navy to gain "visibility" over its supply chain by enabling Navy personnel to track where items are, Holmes said.



The system will provide better control of procurement and transportation costs as well as better interaction with suppliers, he added.



Manugistics will conduct a six-month pilot with the Navy before expanding the project.



The company sees the public-sector market as a hot one for its software.



"We are in the hunt for a lot of opportunities," Holmes said. "The demand in the public sector is pretty substantial."