CMGI Launches New European Solutions; Aims For More Regional Offerings (CMGI)

CMGI, Inc.’s (NASDAQ:CMGI) main unit, ModusLink Corporation has just announced its new Gateway to Europe Solution.  This is supposed to be the first solution to be unveiled in a series of regionally optimized Gateway-to-Market Solutions designed to help technology manufacturers more rapidly establish a high-performing supply chain infrastructure in key geographic markets.  The goal is to lower capital investment and risk to the companies.

The Gateway to Europe Solution combines ModusLink’s local and global market knowledge, integrated operations and extensive global footprint, with a complete range of regionally optimized and integrated services.  This will help in meeting the needs of customers in multiple countries with multiple language requirements to effectively managing variable regulatory compliance, VAT taxation, sourcing constraints and customs clearance.  For whatever this is worth, this issue here is one of the most complex issues currently in international transportation.

The Gateway to Europe Solution is a bundled offering that enables sourcing and supply-base management, materials and content management, light manufacturing and optimized configuration, fulfillment and e-Business; and complete aftermarket services.

ModusLink anticipates that additional Gateway-to-Market solutions will be forthcoming and will focus on the delivery of regionally optimized solutions for key economic regions throughout the world.

There is a catch here, and it boils down to compliance and how user-friendly the system will be.  The truth is that this has all of the key buzzwords that would make this more attractive.  The question is whether or not ModusLink can deliver upon the claims.  We should be getting some data from outside independent supply chain evaluators, so stay tuned.

Jon C. Ogg
September 18, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.