Bob Trebilcock

HighJump’s second act in supply chain software

ProMat 2009: Someone once wrote that there are no second acts in American life. Timothy Campbell, the new CEO at HighJump Software, is determined to prove that sentiment wrong. He has a second act in mind for HighJump, which has re-emerged as a private company after being divested by 3M.

The background: HighJump was number 7 on Modern’s 2008 list of the top providers of supply chain execution software systems by revenue. When it comes to best-of-breed warehouse management, they’re generally thought of as the number 3 player, behind Manhattan and Red Prarie. A few years ago, Minneapolis-based HighJump was scooped up by its bigger neighbor – 3M. Being part of a global industrial giant helped the company double sales and expand its geographic reach. But HighJump always seemed like an after-thought to 3M. Last June, the software provider was taken private by Battery Ventures, a Boston-based private equity firm. 

Enter Campbell, a software-industry veteran, with stops at Baan and IMI, brought in by Battery Ventures to run the joint. And while economic conditions have rarely been tougher, based our conversation at ProMat the other day, Campbell sees a lot of opportunity for HighJump. He’s predicting he can grow revenues to $120 million in the next year or two. While that would still be less than half of RedPrairie’s number, and a third of Manhattan’s, it would represent a significant increase in sales in a down market. How is Campbell going to write that second act?

“A combination of organic growth and strategic acquisitions,” he told me. Despite the tough credit market, Battery Ventures has money to invest at a time when the market value of solutions providers is attractive. “Based on what we’re working on today, I think you’ll see one to three acquisitions from us a year,” he said. “We’re going to be looking for opportunities for leadership that will also strengthen the offerings in our portfolio.”

The purchase of BelTek Systems Design, which strengthened HighJump’s direct store delivery offerings, is an example of the type of deal Campbell is looking to make. He is now on the hunt for an acquisition to beef up HighJump’s current transportation management (TMS) offering. He also wants to add to HighJump’s inventory optimization and planning capabilities.

Why are those important? “Yes, the companies we’re talking to have to optimize their operations within the four walls, but it’s never that straight forward,” Campbell said. “But even if their core requirement is WMS, they want to know that their supplier has a vision for transportation management, labor management and other applications.”

And despite the economy, maybe even because of it, he believes customers will continue to look to supply chain execution solutions to improve their operations as they try to do more with less. “The most important trend I see is that companies are looking for solutions that provide an ROI and flexibility for their operations,” he said. “That’s still true of WMS, transportation management, labor management and the other solutions we sell.”

Posted by Bob Trebilcock on January 15, 2009 | Comments (2)