Outsourcing Increases Technology Needs

As globalization pushes trading partners farther apart, the need for supply chain technology becomes more critical, according to a study published by the Aberdeen Group.

"The Supply Chain Innovator's Technology Footprint" survey of more than 200 enterprises found that 53% of mid-size companies plan to spend more on new supply chain technology in 2006 than they did in 2005. Two-thirds of large enterprises said they plan to spend $300,000 or more on new supply chain technology in 2006, and 35% plan to spend more than $1 million.

Survey respondents ranked inventory and replenishment management, demand management, supplier and global trade management as their top three application investment areas.

Respondents categorized as supply chain innovators those companies seeking to create new supply chain management innovations are more likely to prioritize the use of technology such as RFID, strategic network design, shop-floor control systems, preferential trade agreement optimization and supply chain costing.

The study also shows that outsourcing is increasing the need for more visibility throughout the supply chain. Of respondents surveyed, 69% ranked supply chain visibility their top supplier and global trade technology priority, followed by supply chain costing (58%), supplier/contract manufacturer collaboration (56%), supplier enablement (56%) and trade compliance and free trade agreement management (43%).

To view the entire report visit http://www.aberdeen.com/link/sponsor.asp?spid=30410001&cid=3028.

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