Six of Top Ten Companies Ranked in Gartner’s Supply Chain Top 25 Use Management Dynamics

Posted on June 14, 2011 by marketing

Management Dynamics congratulates all the companies ranked in the top ten of The Gartner Supply Chain Top 25 for 2011: Apple, Dell, P&G, RIM, Amazon, Cisco, Wal-Mart, McDonald’s, PepsiCo and Samsung. Six of these companies listed use our solutions to automate their global trade management processes.

“We’re proud to be associated with these leading companies and we continue to be impressed by their innovative use of our solutions. The results are a testament to the fact that global trade management solutions, when combined with forward-thinking supply chain strategies, can have a measurable impact on return on assets (ROA), revenue growth, and competitive advantage,” said Jim Preuninger, CEO of Management Dynamics.

For more information on how the survey and research was conducted, please visit The Gartner Supply Chain Top 25 for 2011.

Ten Tips to Improve Supply Chain Visibility

Posted on June 10, 2010 by nathan

”Improving visibility” is often one of the top three priorities of supply chain executives to improve the performance of global operations. Here are ten tips to capture the benefit:

1. Accommodate Multiple Fulfillment Models.
Visibility solutions need to be highly configurable to accommodate all of the various fulfillment models in operation across the enterprise. Domestic supply chains with three handoffs and a cycle time of less than a week are much different than an international supply chain that involves 12 – 15 handoffs and two border crossings. Supply chain visibility solutions that are flexible enough to accommodate multiple fulfillment models allow benefits to accrue across the enterprise and not within a specific product line or operational model.

2. Create an ‘Information Hub’. Visibility solutions not only extend processes outside the four walls, but must integrate and aggregate key information from within the four walls of the enterprise. The ‘Information Hub’ creates a one-stop-shop for key order, shipment, and inventory information from all internal ERP, TMS, WMS and other inventory planning systems. This expands the number of supply chain processes that can be managed by Visibility and ultimately improves productivity by eliminating ‘sneaker nets’ and re-keying of information..

3. Don’t Assume Data Quality.
Aberdeen Research recently conducted a survey and discovered that only 16% of Visibility implementations have data quality above 91%. The other 84% of companies surveyed must clearly be challenged by user adoption. To achieve the value from a visibility solution, users must have confidence that the information is both timely and accurate. State-of-the-art Data Quality Management is comprised of complex rule-based systems to cleanse and standardize information and analytical tools to monitor, troubleshoot and resolve data quality issues using Six Sigma principles.

4. Use a Proven On-boarding Process.
Data quality starts at the source and successful Visibility implementations often use an on-boarding service that is based on a careful assessment of information requirements and leverages existing integrations from an established network of transportation, logistics and brokers to certify new connections.

5. Postpone Inventory Allocation Decisions.
Many leading companies are using Visibility to track shipments to an SKU level. This allows them to treat the container as a ‘floating warehouse’ to implement inventory diversions through a transload facility or to and to postpone all inventory allocation decisions to just prior to Entry. Given long order-to-deliver cycles, this ability to manage in-transit inventory can reduce days inventory on hand and stock-outs.

6. Push Visibility Back to Origin
Many initial Visibility implementations are based on ‘where’s my stuff’ shipment tracking at a container level. Savvy companies, however, are expanding their Visibility systems by linking orders to shipments and managing in-transit inventory. New CBP regulations such as 10+2 create much more accountability for the importer and kicking off a new wave of investment to push visibility back to the origin. Many of the “10” data elements are related to the supplier, the seller and where goods were loaded – all information that can be collected from origin operations.

7. Finally Manage Trading Partners with Scorecards.
The by-product of operational Visibility is a rich repository of supply chain data that can be aggregated across the enterprise and with all trading partners year after year after year. Using leading Business Intelligence tools, scorecards to manage supplier compliance, or transportation booking performance can be easily developed. Since Visibility reduces tactical firefighting, the purchasing, logistics and customer service teams can redirect their efforts to continuously improve global operations.

8. Track Landed Costs Along the Chain.
Aberdeen reports that companies that implement visibility are twice as likely to reduce total landed costs over the past two years. Many companies use Visibility to track product, freight and insurance costs as well as integrate trade compliance information such as duties, tax, VAT and other governmental charges. By seeing how costs build and monitoring variances to budget, companies can focus efforts to target cost overruns

9. Use Triggers to Automate Handoffs.
Visibility solutions today are evolving from monitoring tools to execution systems. Leading companies are using ‘triggers’ based on supply chain events to plan warehouse receipts, to schedule a pickup, or to alert that the free-time will expire on a container. These triggers create tremendous value by compressing cycle time or helping to reduce the costs associated with demurrage and detention fines

10. Become Your Own 4PL.
Visibility is now considered to be a critical and strategic information asset. Leading companies are implementing the infrastructure and deploying new value-added services to their business units and ‘plugging in’ logistics provider partners; in short, they are becoming their own 4PL. The advantage of this model is that all trading partners integrate to one standard and are managed at both a tactical and strategic level. In this way the central logistics team controls all information assets and the delivery of value-add services to their constituents. Perhaps “I am here from Corporate and ready to help” can take on a totally new meaning in your business.

Management Dynamics Releases End-Use Manager to Help Companies Reduce Trade Compliance Risks

Posted on January 20, 2010 by marketing

New On-Demand Solution Enables Cross-functional Teams to Create and Manage End-Use Statements for Customers, Vendors and Employees

Management Dynamics, a leading provider of Global Trade Management solutions, today announced the release of End-Use Manager, an on-demand solution that generates end-use surveys for parties involved in any cross-border transaction. The new solution allows a trade compliance team to comprehensively survey and collect end-use statements from customers, suppliers and employees, establishing a standardized process for managing and ensuring compliance with international trade regulations.

“Companies that manufacture and export licensable goods must ensure that their customer and the intended end-use are approved and in compliance with export regulations. However, today this is largely a manual process that is difficult to administer, especially across a global enterprise,” said Adrienne Braumiller, Partner, Braumiller Schulz LLP. “Management Dynamics’ End-Use Manager provides companies with the tools necessary to ensure that their shipments are delivered to the approved trade party and destined for friendly end-use.”

End-Use Manager can be flexibly deployed as a Web-based portal across any global enterprise and configured to meet the specific requirements of different business units. Surveys can be developed by business unit, transaction type, origin country and destination country, and populated with a pre-configured list of questions. In addition, all parties to the transaction are screened against the major sanctioned party lists.

Management Dynamics’ End-Use Manager offers the following key capabilities for companies to simplify trade compliance around product use and related professional services:

Enterprise Deployment – Implement an end-use process by geography, business unit, or product family with a flexible multi-organization deployment model and manage users with role-based security.
Survey Configuration – Develop a comprehensive repository of questions and manage assignment rules to dynamically assemble a complete survey for end-use statements by customers, vendors and employees.
Restricted Party & Critical Country Screening – Automatically screen each party to the transaction against a comprehensive list of restricted parties and embargoed countries.
Generate & Distribute End Use Statements – Dynamically generate end-use statements based on all associated questions as well as the results of Critical Country and Restricted Party Screening in a PDF format for easy distribution via email.
Review Audit Trail – Audit each transaction with complete visibility to the user and all survey questions and answers.

“Today many companies rely on an inconsistent and, often inaccurate, manual process to administer end-use surveys to determine if the intended use of their shipped goods is in compliance with export controls,” said Nathan Pieri, SVP Marketing & Product Management, Management Dynamics, Inc. “Our new End-Use Manager product makes it possible to manage the process centrally and distribute via a simple web-based solution for employees that must interact with customers, suppliers and contractors.”

Fiesta Gas Grills Keeps on Cooking with Supply Chain Visibility

Posted on January 13, 2010 by marketing

Leading Manufacturer Streamlines Inbound Supply Chain to Efficiently Manage Growth

EAST RUTHERFORD, NJ, January 13, 2010 –

Management Dynamics, a leading provider of global trade management solutions, today announced that Fiesta Gas Grills, one of the largest North American grill manufacturers, has implemented its Supply Chain Visibility solution to support its expanded global procurement operations.

Integrating its sourcing which is primarily from China to its operations in the United States and Canada, the global multi-mode solution has enabled Fiesta to improve customer service, reduce cycle times, better manage suppliers and proactively identify in-transit delivery issues.

“We needed a solution that provided visibility into our manufacturing and distribution process at the supplier level, the ability to generate commercial documents and a platform on which to coordinate all of our global operations. We found the ideal solution with Management Dynamics,” said Peter Perley, COO, Fiesta Gas Grills.

“The Supply Chain Visibility solution could help us to double our business this year without having to add additional staff to our procurement organization.”

Makes you wish it was summer!

With real-time shipment visibility, Fiesta can offer its national retail customers, order tracking with visibility into nine stages of the manufacturing process for better inventory management with less frequency of stock-outs. In addition, armed with essential information on each shipment from its suppliers, Fiesta’s procurement operations can make accurate decisions relating to diverting inventory or resolving bottlenecks.

“Global supply chain teams need real-time visibility to their supply network, yet the realities of today’s global supply chain – multiple trading partners with varying information systems and data definitions – can create major operational challenges for companies,” said Nathan Pieri, SVP Marketing and Product Management for Management Dynamics.

“By moving from a largely manual manufacturing and logistics process to one that is automated infrastructure with Supply Chain Visibility, Fiesta Gas Grills has the control and decision support tools they need to reduce lead times, enhance customer service and increase sales in this difficult economy.”

About Fiesta Gas Grills LLC
Through quality craftsmanship and innovative designs Fiesta has become one of the largest North American grill manufacturers. Fiesta grills are cooking great outdoor meals in over 30 countries around the world.. Whether its our award winning Blue Ember brand, our Fiesta brand or our Grillrite brand our dedication to quality permeates our company. From the design teams through the manufacturing team to the in-house customer service representatives, every member of the Fiesta family is committed to providing each owner of a Fiesta grill “the best grill under the sun” and the ultimate in outdoor cooking experience.

Fiesta Gas Grills Keeps on Cooking with Management Dynamics’ Supply Chain Visibility

Posted on January 13, 2010 by marketing

Leading Manufacturer Streamlines Inbound Supply Chain to Efficiently Manage Growth

EAST RUTHERFORD, NJ, January 13, 2010 — Management Dynamics, a leading provider of global trade management solutions, today announced that Fiesta Gas Grills, one of the largest North American grill manufacturers, has implemented its Supply Chain Visibility solution to support its expanded global procurement operations. Integrating its sourcing which is primarily from China to its operations in the United States and Canada, the global multi-mode solution has enabled Fiesta to improve customer service, reduce cycle times, better manage suppliers and proactively identify in-transit delivery issues.

“We needed a solution that provided visibility into our manufacturing and distribution process at the supplier level, the ability to generate commercial documents and a platform on which to coordinate all of our global operations. We found the ideal solution with Management Dynamics,” said Peter Perley, COO, Fiesta Gas Grills. “The Supply Chain Visibility solution could help us to double our business this year without having to add additional staff to our procurement organization.”

Management Dynamics’ Supply Chain Visibility (SCV) solution connects Fiesta Gas Grills with its multiple overseas suppliers, logistics providers, brokers and carriers on a single global platform to communicate critical purchase order, shipment and inventory information and to support collaborative logistics processes. With real-time shipment visibility, Fiesta can offer its national retail customers, order tracking with visibility into nine stages of the manufacturing process for better inventory management with less frequency of stock-outs. In addition, armed with essential information on each shipment from its suppliers, Fiesta’s procurement operations can make accurate decisions relating to diverting inventory or resolving bottlenecks.

“Global supply chain teams need real-time visibility to their supply network, yet the realities of today’s global supply chain – multiple trading partners with varying information systems and data definitions – can create major operational challenges for companies,” said Nathan Pieri, SVP Marketing and Product Management for Management Dynamics. “By moving from a largely manual manufacturing and logistics process to one that is automated infrastructure with Supply Chain Visibility, Fiesta Gas Grills has the control and decision support tools they need to reduce lead times, enhance customer service and increase sales in this difficult economy.”

About Management Dynamics, Inc.
Management Dynamics is a leading provider of global trade management solutions that improve the performance of global supply chains for importers, exporters, logistics service providers, and carriers. The company’s solutions synchronize the flow of information among trading partners, optimize supply chain execution decisions, and streamline import and export processes to ensure regulatory compliance and minimize cost and risk involved in cross-border transactions. Management Dynamics’ time-proven solutions are used by more than 14,000 global users at some of the world’s most successful 3PLs, carriers, manufacturers, retailers, and high technology companies. For more information, please visit www.ManagementDynamics.com

Ocean World Lines Sails Ahead with New Order Tracking Portal

Posted on December 17, 2009 by marketing

Ocean World Lines Sails Ahead with New Order Tracking Portal Powered by Management Dynamics’ Supply Chain Visibility Solution

Leading NVOCC Launches OWL360° to Offer Comprehensive Value-added Service to Customers

EAST RUTHERFORD, NJ, December 17, 2009 — Management Dynamics, a leading provider of global trade management solutions, today announced that Ocean World Lines (OWL), a leading non-vessel operating common carrier (NVOCC), has launched OWL360°, an order, shipment and inventory tracking portal powered by Management Dynamics’ Supply Chain Visibility solution. This robust and flexible web-based solution allows OWL to provide comprehensive and timely data on purchase orders and shipments across all modes and trade lanes, enabling customers to analyze and improve their supply chain efficiency.

“The highly flexible nature of the OWL360° system allows us to easily adapt to market conditions and our clients’ changing needs as we continue to differentiate, provide added value to our customers and stay ahead of our competitors,” said Alan Baer, President, Ocean World Lines. “We truly value our partnership with Management Dynamics as we work together to continuously create enhancements to the system and additional benefits to the user which has significantly improved our customer loyalty and retention.”

Prior to integrating Management Dynamics’ Supply Chain Visibility solution, OWL’s tracking system was a highly manual process whereas operations personnel input data received from carriers and performed manual queries. With EDI connectivity, automated alerts and reports, the new OWL360° portal automates this process and has significantly improved internal productivity. Today, over 200 customers have seamlessly integrated OWL360° within their supply chain operations. OWL uses analysis and reporting tools to help clients improve their supply chain performance with accurate and timely visibility into the status of their orders across all U.S. and international trade lanes.

“While many companies lack critical supply chain visibility due to highly manual processes or first generation visibility solutions that lack the sophistication to accurately manage inventory in-transit, best-in-class companies such as OWL are adopting advanced technologies that help streamline the supply chain,” said Nathan Pieri, SVP Marketing & Product Management, Management Dynamics. “OWL fully exploits the power of our Supply Chain Visibility solution and delivers a highly differentiated service to its customers.”

In addition to Supply Chain Visibility, OWL utilizes Management Dynamics’ Transportation Management solution to automate ocean pricing and manage service contracts as well as Management Dynamics’ on-demand trade compliance tools to help customers classify goods, calculate landed costs and screen for restricted parties.

About Ocean World Lines
Ocean World Lines is a leading global transportation company providing full-service ocean/air freight, NVOCC, customs brokerage, cargo management and supply chain visibility solutions, with 100,000+ TEUs shipped annually. Established in 1979, OWL’s long-standing relationships with leading ocean carriers enable the company to provide the most competitive pricing, daily sailing schedules and equipment availability for a diverse list of import and export clients. Ocean World Lines operates 12 offices throughout the U.S. and international offices in Germany, United Kingdom and Asia.

Applying Business Process Management to the Global Supply Chain

Posted on May 15, 2009 by nathan

Today’s supply chain is much more complex than it was ten years ago given the monumental shift from domestic to global sourcing. Also with new regulations like Customs 10+2 that place accountability on the importer, there is a big push to control (or at least have visibility) to operations at origin. So , business process mapping today plays a key role to understand product flows, process hand-offs and informational triggers.

Some of the hot areas that I see with a specific application of BPM include:

* The order management process with contract manufacturers. BPM can be used to confirm POs with suppliers and automate the approve to ship process.

* The origin planning process with logistics providers to plan the inbound supply chain. BPM can coordinate factory loads and consolidation services as well as automating the routing guide and booking approval process.

* The Importer Security Filing process that can requires coordinated input from the Importer, Forwarder, Broker and Carrier.

* The shipment process where in-transit inventory is monitored. BPM can be used to alert on shipment status, escalate hot issues and coordinate hand-offs

* The entry process where a filing error has occurred. BPM can coordinate the resolution of an entry issue among the broker and import compliance team.

These processes can be tackled individually or linked to form an integrated inbound supply chain. Also, many companies have such a broad product portfolio that they effectively need to manage multiple supply chains, so the supply chain technology needs to be highly configurable

Supply Chain Visibility Hits its Stride (2008 Year in Review)

Posted on December 4, 2008 by nathan

Having been involved in the supply chain visibility market for over ten years, 2008 was one of the most impressive years in terms of number of projects. It seems that the generalization that SCV is simply “a feature of every application” is being tempered with the realization that a specialized information system is needed to manage complex global supply chains. Not visibility in your TMS. Not visibility in your WMS. And, not that visibility that comes packaged with your ERP but doesn’t connect to any data sources outside the four walls of your enterprise. What is to deliver true global supply chain visibility are purpose-built solutions that exhibit the following characteristics:

Highly configurable to map your business processes
Bolts on to all your four wall systems like ERP, TMS, WMS
Leverages an existing supply chain network for pre-integrated connections to carriers, forwarders, brokers, and suppliers
Employs an expert on-boarding process to efficiently certify and manage new connections
Applies advanced data quality management methods to cleanse and synchronize the flow of information

So it is a combination of software, network and services that allows this dog to hunt.

Now why is the SCV space taking off? McKinsey has some interesting insights from their recent survey on managing global supply chains:

Supply chain risk is rising rapidly
Companies are not meeting their cost reduction and customer satisfaction objectives
Supply chain processes are still very inefficient
Companies are centralizing operations to get control

These trends all point to the need for an information system (SCV) to provide the command and control infrastructure. An information system that delivers transparency in global operations, collaboration among different functions and business groups, and an infrastructure to manage business partner relationships. Which certainly supports the McKinsey finding of trends influencing supply chain strategies:

The most common responses to the trends influencing supply chain strategies are increasing the efficiency of supply chain processes (71 percent of executives), actively managing risks along the supply chain (56 percent), and sourcing more inputs from low-cost countries (47 percent). The degree of attention paid to supply chain processes seems prudent, as process improvements are an effective way to manage increasing complexity.

2008 was the year when the ground started to shake under many supply chain teams. Smart investments in SCV promises to be the enabler for better times to come.

Regulations and New Business Practices Drive Adoption of Supply Chain Visibility

Posted on September 10, 2008 by nathan

Finally. After ten years of hype surrounding Supply Chain Visibility (SCV), I am seeing mainstream adoption. Sure, many ‘earlier adoptor’ companies took the plunge during the go-go days of 1999/2000, then the market flat-lined post-bubble. Nobody had investment dollars to spend on projects numbered 2, 3 and 4. The big enterprise app companies were doing a good job soaking up the cash and attention of most IT teams.

Roll forward eight years and the market is ramping up based on two key trends:

the shift to Direct Procurement models of global sourcing; and,
the increased accountability of importers with regulations such as the Importer Security Filing (ISF), affectionately known as Customs 10+2.

Fundamentally, the advance of low cost sourcing strategies is challenging the old forwarder/spreadsheet business process that many Importers have employed. Importers must extend business processes, collaborate with trading partners, and control the flow.

Continue reading →

AMR Predictions in SCM 2008

Posted on June 10, 2008 by nathan

Global supply chains faced their fair share of new and existing challenges in 2007. While improving both cost efficiencies and customer-service levels remained top of mind for supply chain executives, they are now chartered with enabling new business priorities, such as support for growth through more rapid innovation, increased flexibility to respond to demand variations, and sustainability and environmental needs.

Furthermore, in 2007, global supply chain risk took center stage with stories like Mattel’s major issue with lead paint on toys and Dell’s portable battery recall, amplifying the need for mitigating the potential for supply chain disruptions. What does 2008 hold for supply chain management (SCM) and logistics? AMR Research believes that a confluence of economic, technology, and political factors will further emphasize that SCM and logistics are keys to the future success of global businesses. Specifically, here are the top ten supply chain management and logistics trends that AMR anticipates in 2008.

1. SCM and logistics technology markets enjoy healthy growth: In our supply chain spending study, twice as many companies said they will increase spending on supply chain technologies, projecting to grow their budgets by nearly 12% for 2008). The 12% growth in supply chain technology spending will target controlling costs, raising productivity, and improving customer service. Companies can no longer make do with their 10 to 15 year old SCM systems. The research shows that an application replacement cycle is in progress as competition and globalization are driving the move to newer technologies.

2. Near-shoring presents a viable alternative to low-cost country offshoring: AMR Research believes that the trend of near-shoring will continue to gather steam in 2008 for multiple reasons. Companies are discovering some hidden costs of low-cost country outsourcing ranging from the loss in their ability to be demand driven or to manage product quality and protect their brand image. Additionally, focus will remain on the goal of protecting domestic producers against unfair trade practices of countries like China and encouraging U.S. manufacturing through tax incentives, especially in this presidential election year. Expect near-shore sourcing, manufacturing, and design in the United States and in the western hemisphere to be closely analyzed as a more cost-effective–not just faster–alternative to low-cost country sourcing.

3. Best-of-breed vendors regain some lost ground from ERP competitors: In the same AMR Research Report on SCM spending, respondents were evenly divided on which category of vendors they will rely on for new technologies and replacement of existing applications. ERP vendors have gained a strong foothold in areas like demand planning and inventory management. However, users still prefer best-of-breed applications, either packaged or custom-built, in areas like transportation management, warehouse management, and network design as well as for collaborative processes such as vendor-managed inventory (VMI) that extend outside of the four walls of the enterprise.

4. SCM outsourcing alleviates the SCM talent shortage in increasingly complex global supply chains: When combined, several current industry factors are propelling the growth of logistics and greater supply chain outsourcing. A decade of staff downsizing, the globalization of supply chains, the complexity of operating today’s demand-driven networks, and the rise of the offshore, low-cost back-office outsourcing firms have naturally produced an awareness and a new level of acceptance of outsourcing. 2008 will prove to be a fertile year for outsourcing. Look for a slow expansion of additional supply chain services beyond the traditional transportation and warehousing offerings.

5. Companies manage risk for business continuity and competitive advantage: Whereas cost efficiencies, customer service improvement, inventory reductions and other fundamental goals will remain top priorities for supply chain organization, emphasis on supply chain risk mitigation will grow in 2008. Realizing that risk in global supply chains is unavoidable, companies will build a risk-conscious culture, to ensure business continuity. Leading companies will take risk mitigation a step further, building competitive advantage by continuously balancing risk and reward to expand their market presence, improve their profitability or capture bigger market share from their competitors.

6. Impressive returns on investment from current projects nudge RFID back into the spotlight: From arm’s length, the RFID application market looks somewhat listless. Closer examination shows a very different picture. Early adopters now have hands-on experience implementing RFID and a better understanding of its potential value as well as limitations. Ongoing standards development eases the concerns of those companies that fear technological obsolescence. Technology providers have been working hard to keep pace with end-user expectations. Along with tag and reader development, enterprise software applications are focused on easing management and distribution of the RFID data collected.

Look for big advances in item-level tracking that will demonstrate the unmistakable value in the technology in industries as varied as pharmaceutical, publishing, healthcare, and apparel and footwear. Already shown to be a major growth area, the use of RFID in asset tracking and management will continue to expand. We will also see exciting and innovative applications of the technology in emerging markets such as India and Brazil, where companies are defining their supply chain processes from the ground up with RFID as a foundational technology enabler.

7. Software vendors expand their managed-services offerings to deliver results: Software implementations often fail to deliver the benefits expected because oftentimes skills within the organization are insufficient to maximize the value that sophisticated technology can potentially provide. To help companies reach their goals, many software vendors and service providers are coupling domain expertise with deep application knowledge to not only conceptualize, but also actualize the benefits their software and services can bring to an organization. The menu of managed services runs the gamut from business-to-business (B2B) electronic connectivity to demand planning, forecasting, and transportation management. In fact, some of the software-as-a-service (SaaS) transportation networks and managed-services offerings are being adopted by the more mature users, suggesting that increasingly, it does not matter who presses the keys as long as process performance is being achieved.

8. S&OP technologies–not just processes–take center stage: Viewed as the make-or-break process for profitably matching demand with supply, designing sales and operations planning (S&OP) processes and building a supporting organization were high on business priority lists in 2007. But now, more companies are realizing that building S&OP excellence is constrained by their existing S&OP technologies. Look for better definition of the S&OP technology market space and wider adoption of S&OP functionality that enables fast what-if analysis, profitable demand and supply shaping, and structured internal and external user collaboration and consensus building.

9. Connectivity grows in importance as companies extend their value networks: Companies are increasingly realizing that electronic connectivity is necessary to sustain and scale up collaborative relationships with trading partners. But the cost and complexity of building this connectivity had traditionally limited the scope of integration to just a small segment of a company’s trading community. In 2008 we expect to see a growing acceptance of third-party networks, created by integration hubs and SaaS providers that enable companies to more rapidly and easily connect to a broader segment of their customer, supplier, and service provider bases. We will also see some game-changing strategies in the B2B connectivity market that will alter pricing structures and deployment options.

10. What-if analysis and simulation-based tools see growing adoption: Gone are the days when users expected a black-box optimization engine to churn their data, model their problem, and generate a definitive optimal solution. User companies are now more interested in decision-support tools that, while still using optimization techniques, can allow them to conduct scenario planning, perform what-if analysis, and compare the trade-offs among multiple options. Similarly, simulation techniques will see wider adoption as the emphasis continues to shift from the ever-elusive “single optimal solution” to a better understanding of the effect of different supply chain decisions on the top line, customer-service levels, and other business priorities.

In 2008, global companies will continue to focus on supply chains as a necessary enabler for business growth. To do that, companies will search for better strategies to manage their extended supply chains profitably. These strategies will span the deployment of technologies like RFID and S&OP and the analysis of alternative business models like both near-shoring and expanded SCM and logistics managed services. Companies will also focus on alleviating supply chain challenges that could negatively affect their long-term growth potential, including the shortage in SCM talent, limited connectivity, and increased supply chain risk in global value networks.

Source: http://www.amrresearch.com

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