| As has proved to be the case in former economic | | | | of a significant change in the structure of demand, IT |
| cycles, organisations are turning attention to their | | | | solutions may prove to be the most appropriate |
| supply chains as a means of finding efficiencies and | | | | solution to forecast demand or mange supply chains. |
| operational cost savings as a means of combating | | | | And this is particularly useful in the event of the |
| tougher economic conditions. | | | | current economic difficulties, or alternatively when a |
| Research never places 'reducing supply chain costs' | | | | major customer moves overseas. |
| lower than second place in the reasons why | | | | In terms of the forward investment outlook, it was |
| companies invest in supply chain technologies. But in | | | | concluded that software for new product design and |
| better times, organisations have placed 'meeting | | | | development will become increasingly important. This |
| customer mandates' in the top slot; reflecting a more | | | | is in addition, to providing solutions that will help |
| positive ambition to improve their service, | | | | ensure that there is an improvement in quality and |
| competitiveness and growth over mere cost | | | | customer service, whilst also having the ability to |
| reduction exercises. But that was then. | | | | support the monitoring of a business and their |
| A recent survey revealed some very interesting | | | | financial performance. Furthermore, supply chain |
| findings about investment trends in the UK and | | | | management and demand forecasting will prove to |
| European markets, with supply chain emerging a key | | | | be a very likely investment for the larger companies. |
| focus area across a range of industries. | | | | In all, the report indicates that organisations are |
| The findings show that in recent times there had | | | | continuing to plan for forward IT investment, |
| been an increase in the amount invested in IT | | | | specifically directed toward improving their supply |
| (Information Technology) - with more than half of | | | | chain business processes and supporting technologies, |
| the respondents stating this to be the case. In | | | | as a means of lowering costs and improving their |
| addition, nearly more than half of the respondents in | | | | competitive position. |
| the foreseeable future hope to further increase their | | | | However, there are a couple of interesting areas that |
| IT investment. | | | | have formed very real barriers to investment and |
| In terms of where this investment is going, there is a | | | | sound a note of caution to IT enterprise providers. |
| strong emphasis on improving the value chain | | | | Firstly, it has been revealed that the lack of skills |
| components of the supply chain - forecasting, | | | | from employees is a major obstacle to the |
| planning, warehouse management and transportation. | | | | successful implementation of IT solutions. What's |
| As such, supplementing this is increasing visibility of | | | | more, such IT solutions are being targeted across |
| the financial health of a business, through better | | | | the entire business rather than one specific |
| analytics and reporting, and financial tracking and | | | | department. As a result, this makes the coordination |
| measurement. | | | | and implementation of workforce training very |
| What's more, the findings from the study illustrate | | | | difficult. Indeed, this is particularly true of supply chain |
| some key points in the quest for improved | | | | improvement projects, which necessarily cross |
| productivity by better management of performance. | | | | functional, departmental and geographical boundaries. |
| 1. Overall, firms are directing much of their | | | | Secondly, it has also been revealed that there tends |
| investment towards manufacturing activities and | | | | to be a lack of understanding involved with the |
| finance. | | | | potential benefits of IT investment, amongst the |
| 2. Large firms are directing IT investment towards | | | | larger companies. This is an on-going concern. With |
| supply chain management and demand forecasting. | | | | tighter fiscal constraints in all businesses, senior |
| This is driven, at least in part, by the need to | | | | executives will demand evidence that the |
| manage a more dispersed customer base. | | | | investments they are making in IT are delivering the |
| 3. The need to combine responsiveness and flexibility | | | | returns promised. |
| into the production process requires a more | | | | Whilst project tracking the precise improvements |
| sophisticated approach to managing manufacturing | | | | attributed to specific IT investments may be difficult, |
| operations. Flexible production runs and the ability to | | | | especially in complex business process improvement |
| customise to individual requirements are two routes | | | | programmes. However, recent studies did reveal that |
| that UK manufacturers can take to defend their | | | | there was an improvement in the rates of stocks of |
| competitive position. | | | | finished goods and raw materials, levels of wastage |
| 4. Three-fifths of companies are investing in IT to | | | | and on-time delivery; when a company invested in |
| improve the planning and scheduling of manufacturing | | | | improving supply chain management, and demand |
| operations. | | | | forecasting. |
| 5. As manufacturing has become more capital | | | | In the economic climate expected over the next 2 |
| intensive, decisions on optimising production | | | | years, it may well pay for organisations and |
| operations are increasingly critical in realising returns | | | | enterprise vendors to focus further attention on the |
| on investment in capital equipment. Indeed, for some | | | | return on investment case for their IT investments. |
| companies, adopting a more analytical approach to | | | | And when it comes to choosing a supplier of |
| operations management can also guide decisions on | | | | enterprise software solutions, it may prove beneficial |
| where best to locate production. The survey results | | | | to address all of the above issues, and provide |
| also revealed that companies of all sizes and in all | | | | business-specific applications. Overall, it is possible to |
| sectors are prioritising investment in IT across these | | | | turn great software into outstanding business |
| functions. | | | | performance. |
| Furthermore, the survey observes that in the event | | | | |