Executive Briefings

Demand Sensing, Planning Apps Expected To Be 8.7 Percent of Overall Supply Chain Management Spend by 2015

Demand sensing and planning applications, currently representing 8.5 percent of overall supply chain management spending, and are expected to climb to 8.7 percent by 2015 largely due to demand volatility.

Demand Sensing, Planning Apps Expected Be 8.7 Percent of Overall Supply Chain Management Spend by 2015

Volatility has emerged as a top concern for manufacturing companies since the global recession of 2008-2010, according to Worldwide Manufacturing Supply Chain Demand Sensing and Planning 2013 Vendor Assessment, a study released by IDC Manufacturing Insights.

For some manufacturing sub-verticals like engineering-oriented value chains, volatility manifests itself in the form of supply complexity; for other sub-verticals like brand-oriented value chains, volatility manifests itself in the form of demand complexity; for still others like technology-oriented value chains, it's both. The result has been a renewed focus on demand planning and a desire to improve their forecasting capabilities and performance. The study focuses on this critical area, with an eye towards the notable vendors in the space.

"Indications are good for a continued strong future for supply chain demand sensing and planning applications in manufacturing - particularly in those sub-segments like consumer products and high-tech where companies experience high levels of demand volatility," says Simon Ellis, Practice Director, IDC Manufacturing Insights. "We believe that manufacturers who better leverage demand sensing and planning technology to deliver consistently against their service obligations, whilst maintaining required cost levels, will strengthen their current market positions and will be more viable in the long term."

The study suggests the future for manufacturing supply chain demand sensing and forecasting is bright. Not only are manufacturing companies across most industry segments prioritizing these capabilities, but that priority is reflected in IT spending growth. According to the report, expected market growth for demand planning applications outstrips overall manufacturing supply chain management spending growth by over one percentage point.

For information on purchasing reports, contact insights@idc.com.

Source: IDC Manufacturing Insights

Volatility has emerged as a top concern for manufacturing companies since the global recession of 2008-2010, according to Worldwide Manufacturing Supply Chain Demand Sensing and Planning 2013 Vendor Assessment, a study released by IDC Manufacturing Insights.

For some manufacturing sub-verticals like engineering-oriented value chains, volatility manifests itself in the form of supply complexity; for other sub-verticals like brand-oriented value chains, volatility manifests itself in the form of demand complexity; for still others like technology-oriented value chains, it's both. The result has been a renewed focus on demand planning and a desire to improve their forecasting capabilities and performance. The study focuses on this critical area, with an eye towards the notable vendors in the space.

"Indications are good for a continued strong future for supply chain demand sensing and planning applications in manufacturing - particularly in those sub-segments like consumer products and high-tech where companies experience high levels of demand volatility," says Simon Ellis, Practice Director, IDC Manufacturing Insights. "We believe that manufacturers who better leverage demand sensing and planning technology to deliver consistently against their service obligations, whilst maintaining required cost levels, will strengthen their current market positions and will be more viable in the long term."

The study suggests the future for manufacturing supply chain demand sensing and forecasting is bright. Not only are manufacturing companies across most industry segments prioritizing these capabilities, but that priority is reflected in IT spending growth. According to the report, expected market growth for demand planning applications outstrips overall manufacturing supply chain management spending growth by over one percentage point.

For information on purchasing reports, contact insights@idc.com.

Source: IDC Manufacturing Insights

Demand Sensing, Planning Apps Expected Be 8.7 Percent of Overall Supply Chain Management Spend by 2015