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McHugh Software Changes Name to RedPrairie, Emphasizes Measurable Results
May 22–23, 2002 - Chicago —At last week's Distribution Computer Expo, held in Chicago's Navy Pier on May 22 and May 23—McHugh Software International held a press luncheon in which the company announced its new name, RedPrairie Corporation. The Waukesha, WI-based company also announced it will take a new approach to pricing and delivering supply chain execution solutions for its customers by focusing on achieving value and measurable results through a shared risk-reward program. Saying that increased supply chain complexity and other cost pressures are resulting in logistics costs that are too high and continuing to rise for many companies, RedPrairie said it will take a new business approach in which it will guarantee superior logistics results.
RedPrairie officials said that in this new approach, the company will work with new customers to measure their supply chain's performance and then bill its customers on the basis of savings the customer sees through using RedPrairie productivity, warehouse management, transportation management, real-time control, and performance measurement applications. RedPrairie officials said that while this pricing strategy will reduce the amount of upfront license fees it will receive from new customers, it is designed to convince skeptical executives that its supply chain execution solutions will deliver on their promise.
New RedPrairie CEO John Jazwiec said that it is still open to selling its software to customers where the price does include the traditional upfront license fee. However, what is not negotiable anymore is whether or not customers will measure the improvements they see in their supply chains through using RedPrairie DigitaLogistix software. RedPrairie officials said it will work with new customers only if they are willing to measure their results. The company also said its new approach that focuses throughout the project lifecycle on value realization and results achievement doesn't pertain to customers only. The company said it is also transforming its own internal culture and processes to support the results-focused approach, impacting every function and process, from employee titles to measurement and compensation systems.
In fact, Mr. Jazwiec's new title is actually Company Results Leader, not CEO. As for the company name itself, officials said Red was chosen because it represents energy and change, and Prairie because it represents calm and simplicity. Some press conference attendees remarked that the new name also represented how hard it is today to find a name that hasn't already been taken as a URL on the Internet. But no matter: the new name served notice that the company is taking supply chain performance—and measurement - seriously, and is willing to stake its new name on its ability to deliver results.
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