Fulfillment Front and Center

Companies that are currently spending, or planning to spend, significant parts of their IT budgets on supply chain management technology are especially interested in improving fulfillment capabilities, according to a recent AMR Research report, “The SCM Application Spending Report, 2002-2004.” AMR analysts interviewed IT and business leaders in 509 companies to gather the information for the report.

Among the analysts’ findings are that automation of processes related to increased productivity and efficiency were important in 2002; adoption of SCM technology increased to include 38% of mid-sized companies last year; and the companies listed most frequently by respondents as possible vendors of SCM software were i2 Technologies, Oracle, Manugistics, PeopleSoft, and SAP.


Among service companies, the report finds that 52% of retail and 60% of wholesale firms are leading users of supply chain management software. Retailers in particular are using SCM applications to improve fulfillment. The report also considers the changing role of mid-sized companies, some of which are beginning to invest in SCM to prepare for an economic rebound, whenever that may arrive.

Order management and inventory management are the most frequently used types of SCM software. Over 70% of SCM sites include warehouse management, and many WMS vendors offer a richer array of services and modules, or “execution suites.” In this arena, mid-sized companies lead the way in implementation, as almost 81% have a WMS application already, whereas only 68% of larger companies do.

The report concludes that although the industry should not expect a wild expansion any time soon, there is room for continued growth in several areas of supply chain management technology in the coming year, as retailers and manufacturers alike strive to wring ever more efficiency out of their operations. For more information, visit www.amrresearch.com.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.