WHAT: AMR Research`s latest study shows that while the Supply Chain
Management (SCM) market will continue to slow as companies digest
prior purchases, major business initiatives driven by customer-
focused strategies and an increased need for efficiency are creating
supply chain opportunities. Released today, The SCM Application
Spending Report, 2002-2004 reports that 54 percent of companies
surveyed are without SCM software today, of which 20 percent plan to
implement it within the next year.
In 2002, cost efficiency remains a driving theme for the supply chain as users` need for technology flexible enough to support different workflows and rules continues to grow. Top supply chain suite vendors i2 Technologies and Manugistics continue their struggle for market share as the major ERP vendors, SAP, Oracle, PeopleSoft, and J.D. Edwards, show healthy growth in their supply chain application sales.
Report Highlights
AMR Research`s annual report is based on detailed interviews with Information Technology (IT) and business leaders at 509 companies in 14 key verticals. Key findings include:
The automation of business processes that deliver increased productivity and efficiency to meet customer demand are the driving forces behind SCM investments in 2002.
Order management and inventory management continue to be the most frequently used SCM modules, implemented by more than 85 percent of companies with SCM software.
Midsize adoption has grown to 38 percent in 2002, fueled not only by competitive drivers but also by the additional requirements dictated by their large customers desires to automate the supply chain.
Enterprise Resource Planning (ERP) vendors continue to leverage their installed base to gain significant market share in SCM as their functionality becomes more mainstream. Because users prefer to work with a limited number of application vendors, best-of-breed players are increasingly competing as business leaders take over the decision process with a focus on filling functional gaps.
About AMR Research
AMR Research is a strategic advisory firm that provides business and technology executives with the critical analysis and practical advice needed to manage resources, mitigate risk, and increase business value. The company`s industry-specific research initiatives focus on key trends, issues, and developments in Enterprise Management, Customer Relationship Management, Supply Chain Management, and other strategic business applications and enabling technologies that drive the market. AMR Research, founded in 1986, is headquartered in Boston with West Coast operations in Irvine, and European headquarters in London. More information is available at http://www.amrresearch.com/.
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