Subscribe to our free, weekly email newsletter!


Logistics technology: 2010 was a solid year for supply chain software

By Bob Trebilcock, Editor at Large
July 11, 2011

2010 was a solid year for supply chain management software. The industry posted a 10% increase over 2009 and about $4.6 billion in revenue for SCM applications, not counting procurement.

The numbers come from Chad Eschinger, research director with Gartner. Eschinger and Gartner also provided the compilation for our annual list Top 20 providers of supply chain management software, ranked by revenue.

The article will appear in the July issue of Modern Materials Handling, LM’s sister publication. In addition to the numbers, Eschinger identified the trends that drove last year’s rebound. Much of the growth may have been the result of pent up demand. A number of projects went forward that had been stalled because of the recession. But Eschinger also identified several key drivers.

-Lack of visibility: Large corporations were left with too much inventory when the recession hit and too little inventory when demand picked up in 2009. “Users are looking at applications like sales and operations planning, transportation management and asset management applications that can be levered to track goods in motion,” Eschinger says. “They want a better handle on their plans.”
-Enabling corporate strategy: Everyone wants to reduce their costs, but increasingly businesses are targeting their supply chains to improve their overall corporate viability, especially customer service.
-Total landed cost: Blame it on the high cost of transportation, increasing wages in emerging markets and multi-channel sales and distribution strategies, but companies are using their supply chain systems to take a more analytical look at what it costs to fill an online order versus a retail store and what is the total landed cost to source in Mexico versus China.

The question now is whether the growth in 2010 will continue in 2011. Eschinger believes it will and that 2012 is looking good as well. After that, we’ll have to see how the recovery proceeds. You’ll be able to read the whole report online next week.

About the Author

image
Bob Trebilcock
Editor at Large

Bob Trebilcock, executive editor, has covered materials handling, technology and supply chain topics for Modern Materials Handling since 1984. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484 and .(JavaScript must be enabled to view this email address)


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Carload volumes were up 7.6 percent at 299,256, topping the week ending January 12 at 290,607 and the week ending July 5 at 270,731.

U.S. companies made only marginal improvements in their ability to collect from customers and pay suppliers in 2013, while showing no improvement in how well they managed inventory, according to the 16th annual working capital survey from REL a division of the Hackett Group, Inc.

Study suggests solutions for filling the talent gap, including the development of robust ties with the education system.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 5.4 percent from May 2013 to May 2014 at $103.9 billion.

With an eye on making transportation of crude oil by rail (CBR) and ethanol safer following various tragic accidents over the last year, the United States Department of Transportation yesterday released details regarding its rulemaking proposal designed to improve how large quantities of flammable materials by rail can be moved in a safer manner.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA