1 Supply Chain Operations Flow Supply Chain Configurations Supply Chain Strategies.
ToP ProVIdErS Supply Chain Planning
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6 CGT | JANUARY 2014 | CONSUMERGOODS.COM TOP PROVIDERS CATEGORY CUSTOMER EXPERIENCE: 3.70 Supply Chain Planning The industry’s preferred providers of a software suite or point solution for Supply Chain Planning capabilities, including demand forecasting, inventory optimization, etc. The supply chain is an increasingly complex system. For consumer goods manufacturers, this includes the 10 percent increase in the number of items sold over the last five years, and the 70 percent error and 9 percent bias associated with new product launch. Suffice it to say that planning has never been more fundamental to a consumer goods company’s top and bottom lines. Lora Cecere, founder, Supply Chain In- sights, assesses the current state of planning. Can you characterize interest and invest- ment activity in this area? CECERE: The supply chain planning market was over-hyped in the 1990s, col- lapsed in the early 2000s, and today, is still consolidating. Despite the strong returns to corporate performance for supply chain leaders, the market remains stagnant. There are major gaps in user satisfaction with demand planning, supply planning and manufacturing scheduling. The current planning framework, defined in the 1990s, remains largely the same despite changes in business requirements and opportunities in computing power and visualization. Still, for consumer goods manufactur- ers, planning is important. Why? Get- ting good at planning is fundamental to actualizing growth strategies that have stalled, but the adoption of good planning processes is slow. The biggest barrier is corporate behavior. Most companies re- ward the urgent over the important, and struggle to create an environment to use planning software effectively. Can you comment on the top providers in this category? How is market consoli- dation affecting adoption and progress? CECERE: With market maturity, the sup- ply chain planning vendors consolidated. Most of the players on the list made ma- jor purchases, and are still rationalizing software platforms. This market consoli- dation adds to market confusion for the buyer of software. At the current time, SAP continues to lead in buying preference due to market position, strength in corporate financials and the sup- port of a strong system integrator base. Ora- cle’s user satisfaction is similar and buoyed by strong solutions for transportation plan- ning and the legacy implementations of Sieb- el for trade promotion management. JDA is maintaining a strong legacy base from the purchase of Manugistics. These customers are strongly influenced by IT standardiza- tion directives and are working on many co- development programs to augment supply chain planning gaps. Large system integrators favor the implementation of planning solutions from large ERP providers; and as a result, the list is predominately these players. Both Logility and Terra Technology have innovated in the last year bringing some new solutions to market, and have high user satisfaction and loyal customer base, but there are fewer implementations. Will investments in this area change over the next few years? CECERE: Investments in 2014-2016 will be in the redefinition of demand. This focus will favor the best-of-breed solutions. So what happens to the supply chain plan- ning market? Recovery takes time. Thought leaders will push for new solutions and late adopters will slowly redesign planning processes. It will not happen overnight. Customer Experience Leader SMB Market Leader 1 SAP www.sap.com “With the SAP software to help manage our supply chain, we can integrate and streamline planning to improve production forecasting and decision making.” – ALEJANDRO PICASSO, IT AND LOGISTICS MANAGER, COCA-COLA FEMSA, S.A.B. DE C.V. 2 Oracle www.oracle.com 3 JDA Software Group www.jda.com 4 Logility www.logility.com 5 Terra Technology www.terratechnology.com 6 Infor www.infor.com 7 Microsoft Corporation www.microsoft.com
Transcript of ToP ProVIdErS Supply Chain Planning
6 cgt | january 2014 | consumergoods.com
t o p p r o v i d e r s
cAtegorY customer eXPerIence: 3.70
Supply Chain PlanningThe industry’s preferred providers of a software suite or point solution for Supply Chain Planning capabilities, including demand forecasting, inventory optimization, etc.
The supply chain is an increasingly complex system. For consumer goods manufacturers, this includes the 10 percent increase in the number of items sold over the last five years, and the 70 percent error and 9 percent bias associated with new product launch. Suffice it to say that planning has never been more fundamental to a consumer goods company’s top and bottom lines. Lora Cecere, founder, Supply Chain In-sights, assesses the current state of planning.
Can you characterize interest and invest-ment activity in this area?C e C e r e : The supply chain planning market was over-hyped in the 1990s, col-lapsed in the early 2000s, and today, is still consolidating. Despite the strong returns to corporate performance for supply chain leaders, the market remains stagnant.
There are major gaps in user satisfaction with demand planning, supply planning and manufacturing scheduling. The current planning framework, defined in the 1990s, remains largely the same despite changes in business requirements and opportunities in computing power and visualization.
Still, for consumer goods manufactur-ers, planning is important. Why? Get-ting good at planning is fundamental to actualizing growth strategies that have stalled, but the adoption of good planning processes is slow. The biggest barrier is corporate behavior. Most companies re-ward the urgent over the important, and struggle to create an environment to use planning software effectively.
Can you comment on the top providers in this category? How is market consoli-dation affecting adoption and progress?
CeCere: With market maturity, the sup-ply chain planning vendors consolidated. Most of the players on the list made ma-jor purchases, and are still rationalizing software platforms. This market consoli-dation adds to market confusion for the buyer of software.
At the current time, SAP continues to lead in buying preference due to market position, strength in corporate financials and the sup-port of a strong system integrator base. Ora-cle’s user satisfaction is similar and buoyed by strong solutions for transportation plan-ning and the legacy implementations of Sieb-el for trade promotion management. JDA is maintaining a strong legacy base from the purchase of Manugistics. These customers are strongly influenced by IT standardiza-tion directives and are working on many co-development programs to augment supply chain planning gaps.
Large system integrators favor the implementation of planning solutions from large ERP providers; and as a result, the list is predominately these players.
Both Logility and Terra Technology have innovated in the last year bringing some new solutions to market, and have high user satisfaction and loyal customer base, but there are fewer implementations.
Will investments in this area change over the next few years?CeCere: Investments in 2014-2016 will be in the redefinition of demand. This focus will favor the best-of-breed solutions. So what happens to the supply chain plan-ning market? Recovery takes time. Thought leaders will push for new solutions and late adopters will slowly redesign planning processes. It will not happen overnight.
Customer Experience Leader
SMB Market Leader
1 SAP www.sap.com
“With the sAP software to help manage our supply chain, we can integrate and streamline planning to improve production forecasting and decision making.”
– ALEjAndro PICASSo, IT And LogISTICS MAnAgEr, CoCA-CoLA FEMSA, S.A.B. dE C.V.
2 Oracle www.oracle.com
3 JDA Software Group www.jda.com
4 Logility www.logility.com
5 Terra Technology www.terratechnology.com
6 Infor www.infor.com
7 Microsoft Corporation www.microsoft.com
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