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

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

The relationships between third-party logistics (3PL) service providers and shippers are seeing ongoing developments due in large part to the continuing emergence and sophistication of omni-channel retailing. That was one of the key findings of The 19th Annual Third-Party Logistics Study, which was released by consultancy Capgemini Group, Penn State University, and Korn/Ferry International, a global talent advisory firm.

Optimism in the form of increasing profits was a key takeaway in the Annual Survey of Third-Party Logistics (3PL) CEOs, released earlier this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio.

Seasonally-adjusted (SA) for-hire truck tonnage in August saw a 1.6 percent increase in August on the heels of a 1.5 percent increase in July. The August SA index––at 132.6 (2000=100)––stands as a new SA high, with November 2013’s 131.0 now the second best month recorded.

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