Analyst Insight: Consumer packaged goods manufacturers are being squeezed by trends in customer purchasing and technology, coupled with pricing pressures, higher input costs, and fluctuating commodity prices. In today's market, CPG companies have to integrate and collaborate with trading partners and better manage retail shelf space. Growing recognition that failure to innovate will result in poor performance, acquisition, or worse, is driving leading CPG companies to transform their operating models. - Ben Pivar, vice president, Supply Chain Technologies Practice, Capgemini North America Applications Services
ImpactFactor recently completed a study on supply-chain risk, surveying managers of more than 100 companies. The results were not encouraging. According to managing director Bill McBeath, many companies don't consider proactive risk-management to be a strategic tool. He was "shocked" at how level their level of investment in that area was, with half reporting expenditures of $50,000 or less to audit and assess suppliers. "Not a single one spent more than $3m," he says. "Given the huge potential impact [of risk] on their shares, we believe companies are seriously under-investing."
Analyst Insight: Shippers have made great advances in transportation management in the last decade by centralizing procurement and transportation planning organizations, as well as investing in TMS. The question now is: What's the next big thing? As the use of supply chain technology and information sharing grows, there is an increase in the meaningful use of information and integrating transportation with other functions. These areas have already demonstrated significant benefits for pioneering shippers and are clearly breakthroughs in transportation management. - Bill Loftis, principal, Tompkins International
Analyst Insight: Most supply chain management organizations struggle with functional and application silos that make orchestrating and synchronizing business processes across their organization near impossible. Supply chain execution convergence is an emerging Gartner concept where SCE functional silos are broken down and business processes span, optimize and synchronize across traditional functional domains. - Dwight Klappich, vice president, Gartner Inc.
Analyst Insight: Warehouse management system vendors have used the slower market demand of 2009 and 2010 to invest in improved architecture and functionality. Today, the WMS market has seen a robust return in upgrades and new solution selections. Leading WMS application providers - from integrated ERP solutions to best-of-breed suite applications - all tout upgrades in architecture, new user interfaces and robust operational support. - Kevin Hume, principal, Tompkins International
Analyst Insight: For as long as we can remember, product lifecycle management technology has evolved in an incremental way, absorbing and exploiting new technologies as they've come along and steadily gaining in capability to meet the challenges of multi-organisation product development efforts and supply chains. Currently, the PLM solutions industry is being subjected to a looming confluence of pressures that represents both a major challenge to established approaches and a substantial opportunity for harnessing new technologies to drive further benefit. - Tony Christian, principal analyst, Cambashi