Damco has launched a new service allowing customers easily to re-plan shipments in line with changes in delivery date, product cost or carbon footprint.
The past few years have brought radical changes to the world of supply chain management. The business climate today is not only more complex, due to shorter product life cycles, increasing service demands from channels, price erosion and global customers with specialized needs but much more uncertain due to supply risks.
The worldwide supply chain planning (SCP) market is forecast to grow 44 percent over the next five years, representing a compound annual growth rate of 7.6 percent, according to a new ARC Advisory Group study. With the global economic downturn now predominantly in the past, capital spending on information technology has rebounded vigorously. The SCP market has participated in this rebound, as suppliers have reported recent revenue growth rates well above the long-term trend.
The "cloud" can be a difficult concept to grasp, given the various definitions it has been assigned by software vendors and users. Greg Johnsen, executive vice president of marketing and sales with GT Nexus, calls it "an information replica of the physical supply chain." Cloud-based technology provides one place where managers can go to monitor critical supply-chain events. When an element is updated, "everybody gets the information."
Analyst Insight: It's been another year of exciting times within supply chain management, especially with regard to S&OP - as we continue to improve upon a 35-year-old process of balancing demand and supply. Approximately 85 percent of supply chain management professionals around the globe say they are exercising the S&OP process (informal polling of approximately1,000 execs over the past year). About 65 percent of those professionals are positioned in Stage I or II of AMR's (now Gartner) S&OP Maturity Model. While this is positive news, it's clear that globalization of our supply chains requires more than just S&OP basics. - Gregory L. Schlegel, adjunct professor, supply chain risk management, Lehigh University Graduate Program
Analyst Insight: Economic challenges have kept sales and operations planning at the forefront of the supply chain executive's mind. Research has successfully identified the financial benefits that S&OP and integrated business planning (IBP) bring to the table: for example, the Aberdeen Group points to best-in-class companies and the two- to six-times benefits they gained in several key metrics, especially gross margin, in comparison with other companies that did not employ S&OP. Nari Viswanathan, vice president, solutions architecture, Steelwedge Software
Analyst Insight: As the global economy slowly begins to improve, large-scale manufacturers who ship bulk product by rail are again experiencing the issues of service reliability, asset turnover, capacity constraints, working capital optimization and risk. With that said, after the dismal 2008-2009 economy, we're right back into the bane of a one-hundred-year rail dilemma: enhancing service reliability while improving fleet utilization to sustain a lean rail fleet. Current rail management tools are effective at tracking historical transit times and identifying the position of each car at a certain point in time. However, an important disconnect exists between seeing the future demand for rail shipments and predicting the usage and location of the cars over the entire enterprise planning horizon.
- Alfred Sherk, CEO, SherTrack LLC
Aras, a vendor of open-source product lifecycle management (PLM) software, has made available cloud-based replication technology for Aras Innovator, developed by Ilesfay, a provider of data-replication services for organizations with distributed work groups.
