Add EPO to the lexicon of supply chain management acronyms. The "P" stands for profit, as in enterprise profit optimization, a new addition to the suite of supply chain management applications from Manugistics Group (www.manugistics.com).

The idea behind EPO is to create an integrated view of supplier relationships, customer relationships, and order execution. While traditional supply chain management solutions consider the most cost-effective ways to fill an order, EPO also looks at pricing and revenue optimization with the focus clearly on profit.

Greg Owens, chairman and chief executive officer of Manugistics Group, at enVISION2001 in Orlando, introduced the EPO concept.

"An increasing number of our customers have requested a fully integrated supply and demand solution to drive both top line sales growth and bottom line margin enhancement," Owens said. "EPO is the convergence of the supply chain and the demand chain."

Owens unveiled two new applications at the user conference. Profitable order management is designed to help a company more profitably manage and fulfill a customer's order from the initial customer inquiry through delivery of the product.

Profitable promotions management is designed to help create promotional campaigns that enhance profitability consistent with corporate objectives like sales volume and market share, while ensuring that the supply of product matches the demand from the promotion.