JDA Software, a leading US vendor of supply chain software, has signed a system integrator deal with China's e-Future Information Technology which specialises in supply chain solutions for Chinese businesses.
We have always thought that China holds huge potential for firms
skilled in supply chain management because of the obvious deficiencies
of supply chains in China. Now, we are starting to see the market's
potential translate into real business opportunities.
To date, JDA and e-Future have successfully implemented applications
in China at companies such as Orient Home and Homeway,recently acquired
by Home Depot — see this EngagingChina story.
In addition to JDA, e-Future already works with western vendors like
SAP and IBM. It has been an IBM Premier Business Partner since 2005 and
uses the latest IBM technologies such as Websphere to create solutions
for retailers and manufacturers that can be easily deployed over the
E-Future is still a relatively small fish with revenues last year of
just $6m but it is growing fast and there is probably a lot more to
come, as it addresses one of the biggest challenges for western firms
operating in China, namely efficiently moving goods from A to B.
I suspect that it is only a matter of time before e-Future company
is tempted into a more strategic relationship with a big western
partner or even agrees to be acquired.
JDA is strongest in the retailing sector, where more than half of
the world's top 100 retailers use its software, including Carrefour,
Tesco, Office Depot, BestBuy and China's Homeworld Group.
E-Future listed on Nasdaq last December and currently has over 600
customers in China. As well as local retailers and manufacturers, it
supplies software products and services to western mutinationals like
Procter & Gamble, Johnson & Johnson and B&Q that do
business in China.