Automotive, Aerospace, Defense Sectors Want A More Innovative Supply Chain

March 15, 2007
Areas targeted for investment are visibility, order management, supplier collaboration and inventory management.

Eighty percent of the 105 automotive, aerospace and defense industry companies surveyed for a recent Aberdeen Group report said they are dissatisfied with their existing supply chain technology.

"Part of the reason for dissatisfaction lies in the fact that the vast majority of automotive, aerospace, and defense companies run major parts of their supply chain operations on custom or in-house developed technology. Many of these companies are now looking to their ERP vendors or other packaged software providers to help them with the technology needed to enable supply chain transformation and more flexibly adapt to changing business requirements," said Nari Viswanathan, research director, supply chain, at Aberdeen Group.

The companies are willing to allocate resources; 73% of companies with revenue of over $1 billion plan to spend more than $250,000 in 2007 for new supply chain technology projects. The areas of investment include: supply chain visibility, order management, supplier collaboration and inventory management.

Click here for a copy of the report, "Globalization: The Turning Point for Packaged Supply Chain Applications."

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