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MGI 360 Ratings: Logility in Supply Chain Management MAY 22 2017

MGI 360 LogoINITIAL RATING: We are initiating coverage of Logility in Supply Chain Management market at 54 with a NEUTRAL outlook.
OPINION: After 21 years, Logility continues to win large on-premise deals with clients such as Husquavarna. Logility’s revenue consistency, market focus and seasoned salesforce position the company to maintain its 12% growth rate. Addition of an Integrated Business Planning (IBP) solution, while late to the game, enhances Logility’s demand, replenishment, and advanced-inventory portfolio. The firm’s merchandise and allocation capabilities continue to differentiate it in apparel. Clients cite time-to-value as a Logility advantage underscored by the acquisition of the SAP plug-in developer AdapChain. Rating details and peer benchmarks are contained in the attached research note.
USE CASE: A traditional, mid-to-large sized, distribution-intensive multi-echelon enterprise seeking to regain control of its inventory, replenishment and customer service levels, to whom an easy-to-use interface and an uncomplicated implementation will work. Incumbent toolset include spreadsheets, an ERP/MRP or a single-function desktop planning program.
COMPANY DESCRIPTION: Logility is the largest component of the American Software (NASDAQ: AMSWA). Logility, known for a high-touch style of sales and customer service notched large wins against industry leaders, enjoys high renewal rates, and has a 10-12% growth rate. Logility has expanded its direct sales team in North America and Europe, formalized its partnership with Deloitte and invested in Logility-badged sales in Australia, Brazil and India. MGI will be closely observing this firm’s performance to determine how the release of new IBP capabilities and its CEO’s new role helming Logility’s parent, American Software, impact the firm’s ability to execute.
COMPETITORS: JDA, e2open, ToolsGroup, SAP, and Oracle. The general availability of Integrated Business Planning expands Logility's playing field versus Steelwedge (E2open), JDA, ToolsGroup and Kinaxis.
MGI 360 Ratings is a comprehensive system for evaluating technology companies. IT organizations use MGI 360 to track suppliers, assess purchasing risks and identify promising new vendors. Vendors utilize MGI 360 to track their markets and evaluate partners. Institutional Investors use MGI 360 for independent assessment of tech companies. MGI 360 ratings help lower costs, save time, reduce risks, and identify new opportunities.
The MGI 360 ratings are on a scale from 0 to 100 and reflect company opinions of MGI analysts in five key areas on a scale of 0 to 20:
  • PRODUCT: How strong is the product competitive position
  • MANAGEMENT: How competent and experienced is the management team
  • CHANNELS: Does the company have a sales capability and channels needed to bring products to market
  • STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success
  • FINANCE: Is the company growing and profitable.
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