Executive Briefings

The Supply Chain Innovator's Technology Footprint 2007

Supply chain organizations are under continued pressure in 2007 to meet demands for improved customer fulfillment, lower cost of goods sold, and increased global business processes. Aberdeen's benchmark research of 210 enterprises in early 2007 finds that supply chain executives are embracing new approaches and priorities for their supply chain technology roadmap.

For many years, supply chain improvement was synonymous with cutting costs. While cost control is still a strong desire, 72% of companies have other higher-ranking motivations, such as having the ability to better meet customers' unique fulfillment requirements.

Key Takeaways:

1. Innovators are 1.5X times more likely than all others to indicate globalization as their top driver for supply chain improvements
2. Inventory Management is the top priority for companies in 2007; in 2006 inventory management was tied with S&OP/demand management as the top priority
3. Supply Chain Visibility is the #2 priority for companies in 2007 (very close behind inventory management)
4. SOA and RFID in warehouse are not high priorities for 2007
5. Supply Chain Visibility and Transportation Management are the top areas of intention to adopt on-demand applications
6. Top areas companies are embarking on short-term ROI projects in 2007 include inventory optimization (42%), transportation management/fleet management (39%), and supply chain visibility (38%)

Spending Plans:

Five times as many study participants plan to spend more on new supply chain technology in 2007 than plan to spend less. 43% of the overall respondents (and 79% of large enterprises) indicate that they plan to spend $500,000 USD or more.

Although this report cannot provide a set prescription for what a company's technology footprint should look like, the benchmark data can act as a directional guide and reality check. The report provides detailed insights into:

1. How to develop innovation: Should your company use in-house, ERP, or best of breed technology?
2. The key technologies to consider adopting based on whether your organization is a supply chain striver, best practice seeker, or innovator.
3. The technology investment areas that companies are targeting to provide ROI in less than six months.
For the full report, go to:
http://www.aberdeen.com

Supply chain organizations are under continued pressure in 2007 to meet demands for improved customer fulfillment, lower cost of goods sold, and increased global business processes. Aberdeen's benchmark research of 210 enterprises in early 2007 finds that supply chain executives are embracing new approaches and priorities for their supply chain technology roadmap.

For many years, supply chain improvement was synonymous with cutting costs. While cost control is still a strong desire, 72% of companies have other higher-ranking motivations, such as having the ability to better meet customers' unique fulfillment requirements.

Key Takeaways:

1. Innovators are 1.5X times more likely than all others to indicate globalization as their top driver for supply chain improvements
2. Inventory Management is the top priority for companies in 2007; in 2006 inventory management was tied with S&OP/demand management as the top priority
3. Supply Chain Visibility is the #2 priority for companies in 2007 (very close behind inventory management)
4. SOA and RFID in warehouse are not high priorities for 2007
5. Supply Chain Visibility and Transportation Management are the top areas of intention to adopt on-demand applications
6. Top areas companies are embarking on short-term ROI projects in 2007 include inventory optimization (42%), transportation management/fleet management (39%), and supply chain visibility (38%)

Spending Plans:

Five times as many study participants plan to spend more on new supply chain technology in 2007 than plan to spend less. 43% of the overall respondents (and 79% of large enterprises) indicate that they plan to spend $500,000 USD or more.

Although this report cannot provide a set prescription for what a company's technology footprint should look like, the benchmark data can act as a directional guide and reality check. The report provides detailed insights into:

1. How to develop innovation: Should your company use in-house, ERP, or best of breed technology?
2. The key technologies to consider adopting based on whether your organization is a supply chain striver, best practice seeker, or innovator.
3. The technology investment areas that companies are targeting to provide ROI in less than six months.
For the full report, go to:
http://www.aberdeen.com