How to Keep Your Manhattan Associates Spend in Check

Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom, transportation and energy.

When it comes to supply chain efficiency, few IT vendors know more than Manhattan Associates. For the last 20+ years, MA's warehouse, transportation, inventory and logistics management solutions have been implemented by the world's best-known retailers, manufacturers and distributors.

With its comprehensive supply chain solutions, MA typically establishes a large footprint within each client's operations. Companies should be prepared to navigate the contractual and pricing sensitivities that could lead to long-term overspending with MA, including:

  • Bundling. With most vendors, bundling is a sure way to buy more offering than you actually need. But depending on your unique supply chain strategy, MA's bundled offerings often reduce costs in the long run. It's not uncommon for MA to offer free software and services to entice buyers to purchase a bundled solution.
  • Fixed Fee Implementations. Fixed fees are rarely "fixed" and typically lead to costly overages. That's because it's impossible for vendors like MA to predict the unique challenges and dynamics within a company's supply chain. Explore alternative options, like phase-based implementation fees as well as time and materials billing models, to provide clarity around pricing.
  • Professional Services Transparency. Like many software firms with sizable professional services organizations, MA is challenged with retaining its most experienced consultants – which can lead many companies wondering if they're getting the full value from MA's blended hourly rate pricing approach.

- Jeff Muscarella, EVP of IT, NPI

First Voice

  1. Andy Edwards:

    Nice article Jeff. We recently went through an evaluation of 14 vendors and selected Ebiznet over Manhattan precisely for the same reasons. With Manhattan, overall long term costs are high and the technology seems older compared to the newer products by other vendors. Also,we wanted the flexibility of SaaS because we have warehouses and suppliers spread across US and Asia, using Manhattan proved very expensive and especially integration with existing system.

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