Logistics tech vendor JDA Software Group Inc. will focus more on its relationships with partner firms that supply complementary software, hoping to sooth what it admits has been a point of friction by setting more transparent terms for sharing training, leads, product development, and revenue.
Scottsdale, Ariz.-based JDA rolled out more details about its "Partner Advantage" program it launched in February, saying it was now offering streamlined templates to replace the complex contracts it had previously used to define the terms of its relationships with its 150 certified partners, Greg O'Sullivan, JDA's group vice president for partner alliances, said today in remarks at the firm's annual user conference in Las Vegas.
The partner program is a fast growing source of revenue for the firm, which said that the portion of JDA's overall revenue generated by its partners grew by 30 percent from 2015 to 2016, O'Sullivan said. He did not supply specific numbers. JDA partners include MacroPoint LLC, TransVoyant Inc., and FourKites Inc.
Sharpening its focus on partner relationships is an important step to allow JDA to capitalize on trends in the digital transformation of the supply chain, such as omnichannel fulfillment and the spread of radio frequency identification (RFID) and Bluetooth networks for tracking retail inventory, JDA CEO Girish Rishi said in a keynote address at the show.
"Looking forward over the next five to 10 years, there are going to be billions of digital meteors striking across your supply chain, and JDA can use the reach of its enterprise software platform to help our customers weather that impact," Rishi told the keynote crowd.
Rishi is a recent addition to the JDA executive team, having joined the company in January after serving in logistics leadership posts at Tyco and Motorola. He replaced former JDA CEO Baljit Dail, who stepped down after JDA received a $575 million bailout from private equity groups New Mountain Capital and The Blackstone Group.
A stronger relationship with vendors could help JDA and its clients weather rising market challenges such as the growth of same-day shipping, three-dimensional printing, predictive analytics, and mobile computing platforms, the company said.
Rishi cited a partner relationship unveiled today with dunnhumby Ltd., a London-based consumer science company that combines deep customer insights with actionable merchandising strategies and decisions. The company's algorithms mine retail databases to predict customer preferences.