Top Ten Trends in SCM and Logistics

Technology Briefing 1/31/08 -- Supply Chain Management Review, 1/30/2008 6:18:00 AM

Global supply chains displayed gains in efficiency and customer service during 2007, but many companies took supply chain management (SCM) a few steps further by enhancing flexibility, responding effectively to demand variation, and adopting environmentally friendly practices. As for 2008, AMR Research has identified the top ten trends in SCM and logistics for the coming year.

1. SCM and logistics technology markets will enjoy healthy growth. The average increase on spending this year will be 12 percent.
2. Near-shoring presents a viable alternative to low-cost country off shoring. Companies are reviewing nearby outsourcing to enhance speed. Plus, nearby outsourcing may actually be less expensive when the hidden costs of low-cost manufacturing are factored in.
3. Best-of-breed vendors regain some ground lost to ERP competitors. ERP may be easy, but users still show a preference for best-of-breed.
4. SCM outsourcing alleviates the SCM talent shortage in increasingly complex global supply chains.
5. Companies manage risk for business continuity and competitive advantage. Emphasis on supply chain risk mitigation will grow in 2008.
6. Impressive returns on investment from current projects nudge RFID back into the spotlight. Now that the wave of compelled adoption has passed, RFID is ready to prove its worth on its own terms.
7. Software vendors expand their managed-services offering to deliver results.
8. S&OP technologies – not just processes – take center stage. Expect a wider adoption of sales and operations planning (S&OP) functionality in 2008.
9. Connectivity grows in importance as companies extend their value networks.
10. What-if analysis and simulation-based tools see growing adoption.