Sterling: SCM applications to drive regional growth

(BNamericas.com Via Thomson Dialog NewsEdge) US-based business integration solutions provider Sterling Commerce expects 40% of its Latin American revenue to come from supply chain management (SCM) applications by 2008, Sterling South American general director Marcelo Ramos told BNamericas.

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Applications in 2006 will represent just 5% of Sterling's Latin American revenues, he said. The company, a subsidiary of US telco AT&T (NYSE: T), does not publish hard figures.

The growth in applications is part of Sterling's plan to develop its multi-enterprise services architecture (MESA), a service orientated architecture (SOA) based system.

Sterling chose to expand its architecture through acquisitions of strategically important companies, Ramos said.

In May this year, Sterling acquired Minnesota-based logistics solutions company Nistevo to complement its available business-to-business services and software solutions.

Nistevo has an on-demand, web-based network that allows optimization of logistics and supply chain operations. The network is used by more than 60 shippers, spanning a community of over 6,400 carriers, and manages approximately 65 million transactions annually, according to the acquisition statement.

"Nistevo will bring to Sterling a full set of transportation system solutions. It's available to North American customers and it will be available to the world," Ramos said.

Large retail, manufacturing and wholesale corporations account for the bulk of Sterling's Latin American clients. The company has some 610 corporate clients in total, whose logistical systems require other trade partners to use Sterling's applications.

The value-added network (VAN) services handle many of its larger corporate client transactions and also requires client trade partners to use the system. Currently some 5,000 SMEs use the VAN services for this reason, Ramos said.

Despite the advancements, Ramos emphasized there is still plenty of room to grow in the area of SCM.

"There are so many needs right now in terms of logistics and transportation," he said.

Ramos sees other growth opportunities in the migration of current companies to more comprehensive hosted services. Only 10% have the comprehensive set of services and solutions offered by Sterling.

Additionally, Sterling aims to increase deployment of its hosted services, which account for 11% of the company's revenues.

Sterling's MESA combines business integration, business intelligence, business process management and business application logic with service-oriented architecture in the government, finance, insurance, retail, telecom and utilities sectors, the company says.

Copyright 2006 BNamericas.com


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