UPS Forms Alliance With Manhattan Associates

By Staff -- Logistics Management, 8/1/1999

Although third-party logistics companies have often used other vendors' software packages to provide services to shippers, they generally have not formed alliances to co-develop those applications. The Atlanta-based UPS Logistics Group, however, will take the latter route under its recent pact with Atlanta-based Manhattan Associates Inc., a developer of supply chain software.

Under the new alliance's terms, UPS Logistics will include Manhattan's warehouse-management and supply chain execution and optimization software in the information-system solutions it provides its shipper clients. But the third-party provider will go a step further, working with Manhattan to develop new applications tailored to specific industries.

The two companies plan to develop "templates" that will enable UPS Logistics to deploy software applications for certain industry groups more quickly. Among the templates initially slated for development are programs for the wireless communications, health-care, automotive, e-commerce, and high-tech industries.

The partners also will jointly create special system features for UPS's operations. Kevin Land, a sales manager at Manhattan Associates, says such features would facilitate the integration of UPS's third-party logistics arm with its parcel network or its fleet operations.

UPS officials say the alliance will help them compete for shippers' business. "We have tremendous confidence that the enhanced functionality of the software, combined with Manhattan Associates' technical expertise and industry experience, will translate into the creation of a more efficient and cost-effective supply chain for our customers," said John Sutthoff, chief operating officer of UPS Worldwide Logistics, in announcing the alliance.