Need to find a software vendor? Do you sometimes wish you could place a classified ad and find that perfect someone who has the right software for your logistics operation? ("Savvy logistics manager seeks compatible software vendor. Must understand our business...")

Don't despair, say readers of Logistics Management who have been through the process of finding a software soul mate. It just takes time and effort to thoroughly research and evaluate software offerings.

Selecting a software vendor was one of the topics LM explored in February, when we invited readers to take part in an exclusive online survey on software selection and usage. About 250 readers responded; after limiting the field to those who had either bought software or were planning to do so this year, the final sample included 196 shippers.

Respondents hailed from a host of industries. The largest segment, at 10 percent, work for companies that make or sell electrical or electronic equipment. The second-largest groups, at 8 percent each, were in wholesale-durable goods and public warehousing. Retailers, meanwhile, accounted for 7 percent. Other industries that were well represented included beverages, chemicals, and rubber and plastics.

The survey participants worked for both large and small companies. One-third came from companies with less than $49 million in sales, while the next-largest group, at 28 percent, reported annual sales exceeding $1 billion. The balance fell somewhere in between. (Six percent did not provide their corporate revenues.)

When asked to name the most important factor when selecting a software vendor, half of the 196 respondents said they looked for a company that could offer "the right features" to fulfill their operations' needs. (See Figure 1 on Page 65.)

Individual features were especially important among users of specific applications. Some 55 percent of the 86 respondents who use warehouse management systems (WMS) put "the right features" at the top of their lists. Forty-nine percent of the 77 users of transportation management systems (TMS) did likewise, while 54 percent of users of import/export software rated "the right features" as their primary selection criterion.

Given those results, it's no surprise that "best-of-breed" vendors continue to dominate the supply chain software market. These vendors offer specialized programs, such as WMS, TMS, and import/export solutions, that are designed to manage the complexities of a specific logistics function. Even though large vendors of Enterprise Resource Planning (ERP) software have begun offering their own versions of logistics and supply chain software, those programs may lack the breadth of features that are often found in best-of-breed vendors' wares.

That point was underscored by respondent James Wong, chief information officer of Hong Kong-based Intex, which makes consumer goods in Asia for sale in the United States. Wong said that his company needs multilingual support capabilities in an ERP-type package that could also handle logistics. Intex had been leaning toward purchasing a J.D. Edwards supply chain package last year, until Oracle bought PeopleSoft, J.D. Edwards' parent company. Because Intex had concerns about future support for J.D. Edwards' products, the company has re-opened its search and is examining the wares of best-of-breed vendors that can offer support in Asia as well as in the United States.

Like anyone looking for a new partner, buyers of logistics and supply chain software place considerable emphasis on compatibility. Forty-one of the respondents, or 21 percent, cited "compatibility with existing software systems" as the most important characteristic they consider when choosing a vendor. Overall, compatibility ranked second in importance for respondents. (See Figure 2 on Page 66.)

"Compatibility is a key," said Dan Oleksiuk, director of logistics for SteelsIndustrial Products Ltd., a construction products wholesaler near Vancouver, B.C. His company is planning to buy a WMS this year, and Oleksiuk plans to give first consideration to a system offered by the vendor that currently provides the applications his company uses to manage its wholesale distribution business.

Jim Spradlin, distribution manager at Senco Power Fastening Systems in Cincinnati, said he's looking for a WMS with a labor-productivity management module that could integrate with the PeopleSoft system his company now uses. He's therefore investigating PeopleSoft "partners." "Once we identify the players, we'll send out an in-depth RFP [request for proposal] to the vendors," he said.

"Configurability" came in third as the most important factor in vendor selection. Readers apparently don't want to pay extra for consultants or systems integrators to configure applications; they'd rather be able to make modifications themselves.  Continued...

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