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: The awareness of supply chain finance (SCF) in emerging markets is growing. Most recently, foreign importers of goods manufactured in emerging markets, procure-to-pay software providers and financial institutions have been driving increased activity globally. Companies in emerging markets, especially in the small and medium-sized segment, stand to achieve business gains with better understanding of their end-to-end financial supply chains and proper application of available SCF strategies and solutions.
- Viktoria Sadlovska, managing director and CRO, Prameya Research
Analyst Insight: Today's supply chains are efficient, and inflexible. Market conditions change, but planning continues based on historical information. Global supply chains need better planning, but traditional technologies are not up to the task. New technologies are emerging to help to fill the gap. We are entering the era of Big Data Supply Chains that will sense before responding and learn before acting. - Lora Cecere, partner, Altimeter Group
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
Analysts' Insights: As companies plan and strategize for long-term effectiveness in supply management, they must focus on one aspect to truly derive value out of their procurement and sourcing efforts: evolution. Organizations globally must look to the future and adapt their reliance on technology as solutions evolve for the better. Christopher J. Dwyer, senior research analyst, Aberdeen
As organizations continue to adjust their technology footprint into the next decade, the question around SaaS is not if but how SaaS will be leveraged within the procurement enterprise. Constantine G. Limberakis, senior research analyst, Aberdeen
Warehouse-management system (WMS) software is hardly new, but users are increasingly on the lookout for new applications that can be implemented more quickly and less painfully, says Diego Pantoja-Navajas, president and chief executive officer of Logfire. Among the new features they are exploring is the software-as-a-service (SaaS) model, dubbed more recently cloud-based technology.
Analyst Insight: Our research finds that very few companies have a good handle on supply chain risk. The dynamic nature of trading partner relationships, the depth and global footprint of multi-tier supply networks, and many other factors make building a resilient supply chain very difficult. However, those that manage supply chain risk well can gain market share when the inevitable disruptions occur, impacting their competitors. - Bill McBeath, chief research officer, ChainLink Research
Analyst Insight: There were more than 2,000 supply chain disruptions for publicly held companies in 2011. That, coupled with PRTM's 2010 global survey stating that over 90 percent of all companies plan to grow market share by manufacturing and selling in overseas markets, it goes without saying that our global supply chains will experience additional uncertainty, complexity and risk in 2012. And yet, the vast majority of manufacturers are fully unprepared for the complexity of manufacturing and servicing global customers with regionally customized products. - Gregory L. Schlegel, adjunct professor, Supply Chain Risk Management, Graduate Program, Lehigh University
Initiatives such as the Global Supply Chain Forum, which resides at Ohio State University's Fisher College of Business, give the business world access to academic expertise and valuable research, says forum director Douglas M. Lambert. Such efforts are becoming more common, he says, adding that "the business community ought to be our laboratory."