Manhattan Associates, Inc. (Manhattan or Manhattan Associates) develops, sells, deploys, services, and maintains software solutions designed to manage supply chains, inventory and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations.
The company’s customers include many of the world’s premier and most profitable brands. The company runs its Manhattan Active applications in the cloud and delivers them as subscription-based software as a se...
Manhattan Associates, Inc. (Manhattan or Manhattan Associates) develops, sells, deploys, services, and maintains software solutions designed to manage supply chains, inventory and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations.
The company’s customers include many of the world’s premier and most profitable brands. The company runs its Manhattan Active applications in the cloud and delivers them as subscription-based software as a service (SaaS), and its architecture is highly differentiated among enterprise application providers, particularly within the Omni Channel and Supply Chain categories. The company’s application architecture delivers a versionless yet highly extensible experience for the company’s customers. The company offers its customers access to new innovation on a quarterly basis, ensuring all customers are running on a single fully up-to-date codebase. Manhattan Active also provides zero downtime updates, so the company is able to deliver innovation seamlessly into customer environments without the need for planned maintenance windows.
Manhattan Associates develops modern commerce solutions that help its customers in three distinct areas of their business:
Supply Chain Execution - The company provides companies the tools needed to manage distribution and optimize transportation costs throughout their entire commercial network. Manhattan’s Warehouse Management solutions are widely regarded as industry-leading systems designed to optimize productivity and throughput in distribution centers and warehouses around the world. The company’s software helps optimize fulfillment models to support the company’s customers across a wide range of channels and fulfillment methods. Likewise, the company designs its offerings to provide shippers and carriers the most comprehensive transportation management solutions in the market. This includes software to help them move freight via the most cost-effective means possible while also meeting service-level expectations, to model their transportation network, and to automate the procurement-to-pay process.
Omnichannel Commerce - Meeting ever-evolving consumer expectations of service, inventory availability, and delivery convenience is a challenge every merchant must meet head on. Manhattan’s Omnichannel solutions provide an operating platform for digital commerce, retailers, and wholesale businesses. Comprising Order Management, Store Inventory Fulfillment, Call Center, Point of Sale (POS), and Customer Engagement as their core applications, Manhattan Omnichannel solutions provide CRM capabilities for contact center agents; end-to-end process enablement for store associates, and enterprise-wide inventory availability determination, order fulfillment optimization, and POS capabilities.
Supply Chain Planning – Manhattan’s solutions provide distributors of finished goods (apparel, food, auto parts, pharmaceuticals, etc.) the ability to forecast demand, determine when, where and how much inventory is needed, and translate this into profitable inventory buying plans. These areas are ever more complex and critical to profitability as more wholesalers and retailers engage in omnichannel operations. Through the use of advanced science and sophisticated analytics, customer service level is maximized with minimum inventory investment. Industry changes driven by omnichannel retail, pharmaceutical regulations and other trends make this an area of particular need for many retailers and wholesale distributors.
Manhattan Associates’ Software Solution Portfolios
The company’s portfolio of solutions is built around holistic-based, technology platform, which provides customers with two major benefits:
Industry Leading Feature Function – Manhattan solutions are consistently rated by customers and industry analysts alike as providing the most comprehensive and innovative feature functionality in the market. From warehouse management to POS, the company’s solutions are consistently at the top of the market with respect to configurability, capability and usability. Customers choose Manhattan applications to solve the industry’s most complex supply chain problems. The company’s combination of deep domain expertise, an in-house data science and operations research team, and a specialized user experience team combine to differentiate Manhattan solutions.
Solution Unification – Manhattan solutions are organized into three groups: omni-channel, supply chain, and inventory. Each one of these groups are engineered to provide cross-application benefit that simplifies and improves operations within those three areas. This approach significantly reduces complexity, maintenance and application risk for the company’s customers, providing an expanded set of end-to-end capabilities. As complexity continues to grow for the company’s customers, Manhattan provides value by eliminating the need to design, build and maintain complex system to system integration.
Manhattan’s Supply Chain Solutions are focused on the distribution and transportation operations of the enterprise. There are two main components of Manhattan’s Supply Chain Solutions:
Distribution Management - These applications comprise Manhattan’s Warehouse Management Solutions (WMS) commonly used to manage the complexity of the modern distribution center. WMS manages the flow of goods and information across the distribution center. WMS is delivered for new and upgrading customers in the form of Manhattan Active Warehouse Management (MAWM), a cloud native and versionless application that delivers new innovation on a quarterly basis. Manhattan Active WM runs on Google Cloud Platform, is offered exclusively via subscription, and includes state of the art fulfillment optimization technology, a consumer grade mobile app experience for the associate, and embedded gamification capabilities to improve associate engagement and performance. Manhattan Active WM is fully configurable and technically extensible, meaning customers can build their own componentry to work alongside the company’s base application. Manhattan Active WM also embeds labor management and slotting optimization capabilities. Manhattan’s WMS customers benefit from its embedded warehouse execution system that coordinates the interaction between automation, robotics and labor for maximum efficiency. Manhattan’s WMS also enables the efficient utilization of a single distribution center for direct-to-consumer, retail replenishment and high-volume wholesale fulfilment. The company’s WMS provides the customer the most productive operation that can scale to meet the highest demands during peak season while operating effectively and profitably throughout the course of the year.
Transportation Management - Organizations today face a complex transportation environment with ever-changing demands driven by macro-economic trends and governmental regulations. Manhattan’s Transportation Management Solutions (TMS) are designed to help shippers navigate their way through these demands while meeting customer service expectations at the lowest possible freight costs. TMS components include procurement and modeling tools to setup a successful network, along with planning, execution and settlement tools to manage day-to-day transportation requirements. The company’s TMS can also connect shippers with a network of partners that can increase shipping capacity on an as-needed basis. Manhattan Carrier is a suite of solutions built specifically to help motor carriers optimize load assignments, minimize fuel costs, manage drivers’ hours of service and accommodate demand fluctuations.
Manhattan SCALE (SCALE)
SCALE is the company’s portfolio of logistics execution solutions built on Microsoft’s .NET platform. Purpose-built for rapid development and a value-based total cost of ownership, SCALE is targeted toward companies with execution-focused supply chain needs that require speed-to-value, resource-light system configuration and maintenance, and the ability to quickly scale their logistics operations up or down in response to market fluctuations or business requirement changes. SCALE combines the features of Trading Partner Management, Yard Management, Optimization, Warehouse Management and Transportation Execution.
Because SCALE solutions leverage a common platform, they share common data elements, and each user can access all applications through a single sign-on. Users also can set up ‘dashboards’ that enable easy access to real-time information most relevant to their jobs. SCALE’s ease of deployment, operation and support make it a popular choice for organizations operating in countries with emerging and developing economies, and where technical support resources are limited.
SCALE is delivered as a cloud-based solution on Microsoft’s Azure platform. Through this platform, Manhattan Active SCALE customers receive new capability on an annual basis and enjoy full configurability and elements of technical extensibility even when delivered on Azure. The company continues to offer SCALE on premise via perpetual licenses.
Omnichannel Solutions
As omnichannel retail has placed new demands on retailers, it has also created new software solution needs. These range from the ability to leverage inventory across the entire network to meet any demand, to providing store associates and call center representatives the means to take advantage of the available inventory. The company’s Manhattan Active Omni set of solutions brings together Order Management, Store Inventory & Fulfillment, POS and Customer Engagement tools into a single application built on a shared, cloud-native, microservices platform. This architecture enables the company’s customers to more easily expand their systems to include more capabilities and quarterly product enhancements while always maintaining their customizations.
Enterprise Omnichannel Solutions - There is a wide range of new capabilities that must be leveraged at a corporate or ‘central’ level in retail today to enable best-in-class customer service, full inventory visibility, direct to client distribution and seamless fulfillment operations. The company’s intention is to enable an omnichannel commerce platform that can be tapped into by any selling system—such as webstore, ERP, point-of-sale, call center, and mobile app, to more cost-effectively promise and then meet delivery dates. Manhattan’s Enterprise Inventory builds out a complete inventory availability picture that can be updated in near-real time with feeds from the warehouse, the store and other fulfillment locations in the network. Enterprise Order Management merges this inventory availability data with demand feeds from across the organization to match supply with demand - satisfying customer delivery expectations while striving to maximize revenue and profitability. Finally, Manhattan offers a unique Customer Engagement solution that enables contact center associates to see a holistic view of the customer, including a complete customer sales and interaction history, to better satisfy shopper needs while optimizing potential revenue and profit opportunities through new orders, exchanges or a returns. Manhattan Active Omni now also includes a set of Digital Self-Service capabilities, allowing consumers to manage their orders after they have placed them.
Omnichannel Solutions for the Store - As the consumer enters the store with more information than ever, it is vital to equip the sales associate with relevant information and capabilities to satisfy their demands. Store solutions available on mobile and fixed stations include POS to process purchase transactions and Customer Engagement to provide the associate with a complete picture of the shopper’s purchase history. Manhattan brings these solutions together on a single mobile platform to enable retailers to offer unparalleled service and convenience for the shopper.
Store Inventory and Fulfillment - Most retailers are now looking to leverage store inventory to fulfill e-commerce demand (driving greater sales revenue with less inventory). This requires solutions that can accurately maintain inventory integrity and enable productive, reliable fulfillment. Manhattan’s Store Fulfillment solutions provide store associates with capabilities that power fulfillment experiences like buy online, pickup in store, curbside pickup, same day delivery and ship from store.
Inventory Solutions
The ability to accurately forecast demand and project inventory needs is heightened by omnichannel retail requirements that change traditional approaches to inventory management. Manhattan’s Inventory solutions address which products should be carried and the quantity that will be needed at each location by date.
Inventory Optimization - This set of applications includes sophisticated demand forecasting capabilities that can address the particularly challenging slow-moving and intermittent products that frequently result in excess inventory due to unpredictability. Also included is the Replenishment module that can evaluate inventory needs across all locations and channels. This module can even suggest transferring inventory between locations (warehouses or stores) or ‘protect’ merchandise at a store from online sales to save it for walk-in traffic.
Allocation – Manhattan’s Allocation is designed to serve the softlines/apparel market. It provides inventory planning capabilities from first receipt in the distribution center through to the end of season for a given assortment. Built on the Manhattan Active architecture, Manhattan Active Allocation is cloud native, versionless, runs on Google Cloud Platform and updated on a quarterly basis.
Technology Platform
Manhattan's Active Platform solutions are cloud-native products designed to provide ‘always current’ version-less product access. The server side full stack runs exclusively on Google Cloud Platform, and end users can access the system from almost any type of device – mobile, tablet or desktop. Manhattan Active solutions are sold directly in multi-year cloud subscription arrangements, typically for a period of five years or more, providing clients with regular software updates during the contract period to ensure access to the latest product features and benefiting Manhattan with a predictable and regular revenue stream.
Part of the key value proposition of Manhattan Active Platform is extensibility. In addition to the business configurability offered within each line of business application, Manhattan Active Platform also allows the company’s customers to change the underlying data model, the user interface, and the core business logic within each application. Key to this process is Manhattan ProActive, the company’s developer enablement toolkit which allows for the types of technical modifications noted above (and more). While the company don’t charge separately for Manhattan ProActive (it comes as part of the subscription to any Manhattan Active Platform application), the company do enhance it on the same cadence as the company does its line of business application, i.e. quarterly.
As omnichannel and supply chain solutions necessarily interact with other business operation systems, the company’s solutions are designed to interoperate with software from other providers, as well as with a customer's existing legacy systems. This interfacing and open system capability enables customers to continue using existing computer resources and to choose among a wide variety of existing and emerging computer hardware and peripheral technologies. The company also offers certain solutions in either on-premise software or cloud computing models so that customers can select the option that best meets their requirements for control, flexibility, cost of ownership and time-to-deployment.
The company continually invests in artificial intelligence (AI) technology to enhance the company’s functional offerings, with a recent emphasis on generative AI (GenAI) advancements. The company’s AI capabilities are seamlessly embedded across all supply chain execution, planning, and commerce applications, aimed at delivering real-time optimization and value creation. Historically, the company’s AI initiatives have focused on traditional mathematical optimization and machine learning. However, the company is leveraging third-party large language models to unlock value in a broader range of use cases. Looking ahead, the company plans to further expand its investments in generative AI, introducing new product capabilities in the coming quarters and years. These efforts are designed to empower supply chain operators, retailers, and end consumers with GenAI-driven assistance. The company expects its continuing focus on innovation to generate ongoing productivity gains, enhanced user experiences, and increased operational efficiencies.
Maintenance
The company offers a comprehensive program that provides the company’s on-premises software licensees with software upgrades for additional or improved functionality and technological advances incorporating emerging supply chain and industry advances. The company is able to remotely access customer systems to perform diagnostics, provide online assistance, and facilitate software upgrades. The company offers 24-hour customer support 365 days a year plus software upgrades for a pre-paid annual fee based on the specific solutions the customer has and the service level required. The company provides software upgrades on a when-and-if-available basis.
Professional Services
The company advises and assists its customers in planning and implementing the company’s solutions through its global Professional Services Organization. To ensure successful long-term customer relationships, consultants assist customers with the initial deployment of the company’s systems, the conversion and transfer of the customer’s historical data onto the company’s systems, and ongoing training, education and system upgrades. The company’s Professional Services teams enable customers to implement the company’s solutions knowledgeably and in the appropriate amount of time, help customers achieve expected results from system investments, continuously identify new opportunities for supply chain advancements and meaningfully add to the company’s industry-specific knowledge base to improve future implementations and product innovations.
Substantially all of the company’s customers utilize some portion of its Professional Services to implement and support the company’s software solutions. Professional Services typically are rendered under time and materials contracts, with services billed by the hour. Professional Services sometimes are rendered under fixed-fee contracts, with payments due on specific dates or milestones. Increased sales of the company’s solutions will drive higher demand for the company’s Professional Services.
The company’s Professional Services team delivers deep supply chain and enterprise commerce domain expertise to its customers through industry-specific ‘best-practices’ protocols and processes developed through the collective knowledge the company has gained from 30 years of implementing the company’s supply chain solutions worldwide. The company also extensively trains its consulting personnel on enterprise commerce operations and on the company’s solutions.
The company’s business consultants, systems analysts and technical personnel assist customers in all phases of implementing the company’s systems, including planning and design, customer-specific module configuration, on-site implementation or conversion from existing systems and integration with customer systems, such as Enterprise Resource Planning, web- and mobile-based commerce platforms, and Material Handling Equipment systems. At times, third-party consultants, such as those from major systems integrators, assist the company’s customers with certain implementations.
Training and Change Management Services
The company offers training and change management services for new and existing users, enabling the company’s customers to align systems, people and processes. Services provided by Manhattan training experts cover a wide range of support from the intended design to the front line of the customer’s business, including critical end-user adoption with hands-on, live training in a virtualized Manhattan software environment. These programs are provided on a fixed fee per-person, per-class basis. In addition, computer-based training programs can be purchased for a fixed fee for use at client sites. Customers can also pursue certification at the Associate or Professional level through the company’s certification programs for Omnichannel, Supply Chain or Inventory.
The company offers Manhattan Training and Change Management Services under six categories: Role-Based Training Paths, Comprehensive Training Programs, Change Management Services, Individual Product Training Courses, End-User Enablement and Knowledge Resources.
Hardware Sales
As a convenience for the company’s customers, the company resells a variety of hardware developed and manufactured by others, including computer hardware, radio frequency terminal networks, radio frequency identification (RFID) chip readers, bar code printers and scanners, and other peripherals. The company resells all third-party hardware products and related maintenance pursuant to agreements with manufacturers or through distributor-authorized reseller agreements pursuant to which the company is entitled to purchase hardware products and services at discount prices and to receive technical support in connection with product installations and any subsequent product malfunctions. The company does not maintain hardware inventory as the company generally purchases hardware from vendors only after receiving related customer orders.
Strategy
The company’s solutions help global distributors, wholesalers, retailers, logistics providers and manufacturers successfully manage accelerating and fluctuating market demands, as well as master the increasing complexity and volatility of their local and global supply chains. The company’s solutions are advanced, highly functional and highly scalable. They are designed to enable organizations to: create customer experiences consistent with their brand values; improve relationships with suppliers, customers and logistics providers; leverage investments across supply chain functions; effectively generate revenue and manage costs; and meet dynamically changing customer requirements.
The company’s solutions are uniquely positioned to holistically optimize the way companies bring together omnichannel, supply chain and inventory management: develop and enhance software solutions; expand international presence; strategic alliances and indirect sales channels; and acquire or invest in complementary businesses.
Sales and Marketing
The company employs multi-disciplinary sales teams of professionals with industry experience in sales and technical sales support. The company generated the majority of its cloud subscription revenue and software license revenue through direct sales. The company plans to continue to invest in its sales, services, and marketing organizations within the Americas, EMEA and APAC; and to pursue strategic marketing partnerships. The company’s marketing strategy is to promote its brand, differentiate the company’s value proposition, and generate demand for the company’s offerings. The company uses multi-channel global marketing programs to reach new prospects and expand relationships with current customers. The company’s marketing efforts and lead generation activities consist primarily of press and industry analyst relations, customer endorsements, content marketing, digital marketing including social media such as LinkedIn, Twitter and YouTube, advertising, trade shows, industry events, joint marketing with strategic partners, and targeted lead generation through account-based marketing. The company also hosts its annual Momentum and Exchange user conferences, webinars, and regional user groups where the Manhattan community comes together to connect on important topics and each other, get inspired to drive their digital transformation, and get educated on Manhattan solutions and offerings.
The company’s sales cycle typically begins with the generation of a sales lead — through in-house marketing efforts, advertising, targeted promotions, web inquiries, trade show presence, speaking engagements, hosted seminars, or other means of referral — or the receipt of a request for proposal from a prospective customer. Leads are qualified and opportunities are closed through a process that includes telephone-based assessments of requirements, responses to requests for proposals, presentations and product demonstrations, site visits and reference calls with organizations already using the company’s supply chain solutions, and contract negotiations. Sales cycles vary substantially from opportunity to opportunity, but typically require nine to twelve months.
In addition to new customer sales, the company continues to leverage its existing customer base to drive revenue from expansions of their existing solutions, as well as sales of new or add-on solutions. To efficiently penetrate emerging global markets, the company leverages indirect sales channels, including sales through reseller agreements, marketing agreements, and agreements with third-party logistics providers. To extend the company’s market coverage, generate new business leads, and provide access to trained implementation personnel, the company leverage strategic alliances with systems integrators skilled at implementing the company’s solutions. Business referrals and leads are positively influenced by systems integrators, which include most of the large consulting firms and other systems consulting firms specializing in the company’s targeted industries.
The company’s Manhattan Value Partner (Manhattan MVP) and Manhattan GeoPartner programs foster joint sales and marketing with other organizations. Manhattan Value Partners are proven software and hardware providers, trusted third-party integrators and consultants who bring added value to customer engagements through vertical industry knowledge or technical specialization. Manhattan MVPs support and complement the company’s supply chain solutions so the company can provide customers with a comprehensive approach that is suited to their business requirements. This collaborative program is designed to benefit both Manhattan and the company’s partners through tailored joint marketing, sales and, in some cases, co-development efforts. Among others, Manhattan MVPs include Google Cloud, Deloitte, Accenture, Cognizant, Zebra, and Honeywell. Manhattan GeoPartners represent a select group of companies that sell and implement the company’s solutions in specific geographies around the world, each providing valuable localized expertise to meet customer needs in areas such as Western Europe, Eastern Europe, the Middle East, Latin America, Africa, and the Asia Pacific region.
Customers
As of December 31, 2024, the company’s customers had been suppliers, manufacturers, distributors, retailers, and logistics providers in a variety of industries. The company’s top five customers (new or pre-existing) in the aggregate accounted for 12% of total revenue for the year ended December 31, 2024.
Competition
The company face competition for product sales from:
ERP vendors, including: Oracle, SAP, and Infor, among others;
Supply chain execution and planning vendors, including Blue Yonder/Panasonic (formerly JDA), Korber (formerly HighJump), SAS Institute, the Sterling Commerce division of IBM, Relex, and others;
POS vendors, including Aptos, Oracle, and others.
International Operations: Segments
The company has three reportable segments based on geographic location: North and Latin America (‘the Americas’); Europe, the Middle East and Africa (‘EMEA’); and the Asia Pacific (‘APAC’). International revenue includes all revenue derived from sales to customers outside the United States.
Proprietary Rights
The company has registered trademarks for Manhattan Associates and the Manhattan Associates logo, as well as a number of the company’s products and features.
Research and Development
The company’s research and development expenses were $137.7 million for the year ended December 31, 2024.
History
Manhattan Associates, Inc. was founded in 1990. The company was incorporated in Georgia in 1998.
