ROCKVILLE, Md. - June 10, 2003 - Manugistics Group, Inc. (Nasdaq: MANU), a leading global provider of supply chain and demand chain optimization solutions, today announced a powerful new Markdown Optimization solution, designed to help leading retailers develop optimal markdown pricing strategies - moving inventory as profitably as possible, and generating maximum value from end-of-life and end-of-season inventory. By providing a web-based, enterprise-wide view of the projected impact of markdown plans, retailers can gain a strategic advantage that helps enhance profitability by setting optimal markdown price schedules for every stage of the inventory lifecycle.
According to Greg Girard in an AMR Research Report, May, 2003, "Predicting how pricing decisions affect revenue, gross margin, and sell-through is typically guesswork."
Manugistics` powerful Markdown Optimization solution is designed to bring rigor to that process by helping automate the highly sophisticated demand and profitability modeling required by today`s leading retailers. This functionality can enable clients to obtain a holistic view of their business with a better forecast of the impact of markdown plans prior to execution. The Markdown Optimization solution allows highly competitive retailers to perform `what-if` analysis to gauge customer demand response to potential markdown plans.
"With Manugistics` Markdown Optimization solution, Circuit City is able to better understand the impact of our markdown plans prior to execution," said Doug Moore, assistant vice president of merchandising operations for Circuit City Stores. "We are able to efficiently evaluate trade-offs between excess inventory costs and margin attainment."
"Facing intense competition and razor-thin margins, retailers need the ability to make the most of every markdown program. Until recently, markdown management depended primarily on estimations using sound business judgment and it was difficult for decision-makers to scientifically project and quantify expected effects of a markdown strategy," commented Neil Hooper, Manugistics` Group vice president of demand and revenue optimization solutions. "Now we can help enable industry-leading retailers to take business objectives and constraints into account in markdown strategies, capturing the maximum value from their fast-moving inventories."
An embedded market response modeling (MRM) algorithm can enable clients to build a precise and holistic view of consumer anticipated response, projecting sales down to the SKU/store level. The unique, powerful algorithm will incorporate complexities including consumer price elasticity, seasonal demand variations, inventory costs, product life cycle, and vendor funding.
Manugistics is now leading the way in the integration of pricing solutions with supply chain solutions. A key component of Manugistics` powerful Demand and Revenue Optimization suite, Markdown Optimization can help clients achieve the full benefits of improved markdown management. The solution is built on a flexible architecture for leveraging existing transaction and inventory systems, offers a reporting and alerting system to keep performance on track, and boasts groundbreaking scalability – reliably handling tens of millions of SKU/store combinations.
About Manugistics Group, Inc.
Manugistics is a leader in delivering innovative pricing and supply chain software solutions. Today, more than 1,200 clients trust Manugistics to help them reduce costs, increase revenues and enhance margins. The company provides comprehensive solutions for supply chain management, service and parts management, pricing and revenue optimization, and supplier relationship management. Its clients include industry leaders such as AT&T;, Airgas, BMW, Boeing, Brown & Williamson, Caterpillar, Cisco Systems, Circuit City, Coca-Cola Bottling, Continental Airlines, Diageo, DuPont, Fairchild Semiconductor, Ford Motor Company, Harley-Davidson, Nestle, RadioShack, Smith & Nephew and Unilever. For more information, go to http://www.manugistics.com.
FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301-255-5330.
Manugistics Group, Inc.
Ogilvy PR (For Manugistics)
FORWARD LOOKING STATEMENT
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, continuing economic and political uncertainty, the timing and degree of business recovery, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, unexpected competition, risks related to quarterly performance, risks of new business areas, international expansion, business combinations and strategic alliances, lengthening of sales cycles for software products and services, and the effectiveness of the cost reduction efforts undertaken by Manugistics and their impact on the company`s ability to operate its business. A decreased demand for enterprise application software due to weakened economic conditions could result in decreased revenues or lower revenue growth rates. More information about factors that potentially could affect Manugistics` financial results is included in Manugistics filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended February 28, 2003. Manugistics assumes no obligation to update the forward-looking information contained in this announcement.
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