Manugistics said Monday that Kraft Foods has agreed to license its manufacturing software. The food giant plans to use the applications in both its domestic and international operations to reduce inventory and cut manufacturing costs. The companies would not disclose the value of the sale.
The deal comes amid hard financial times for Manugistics, which warned investors last week that slowing sales in recent months will lead the company to post higher-than-expected losses in the first quarter. The company's management said it will lay off an unspecified number of staff as the company seeks to cut costs. Other enterprise software companies, including Manugistics rivals i2 Technologies, Oracle and SAP, are also grappling with declining software sales.