11th Annual Supply Chain Management Software Users Survey: Caution remains

Logistics professionals appear to be enthused by the gradual economic recovery and see the need for improved visibility to better meet new supply chain demands, but they’re still not ready to make the big investments necessary to fully realize those goals.
By Bridget McCrea, Contributing Editor
June 01, 2013 - LM Editorial

Reasons for adoption
Shippers are embracing supply chain software for a wide range of reasons. According to the LM study, for example, the key reasons for purchasing a WMS include label printing, freight/package rating, and slotting features.

Key TMS purchase drivers include routing and scheduling, carrier selection and load tendering, as well as routing and rating. The largest percentage of shippers (50 percent) say they plan to spend less that $99,999 on all supply chain software over the next 12 months. Twenty-eight percent say they plan to spend $100,000 to $499,999, while 8.7 percent will spend between $1 million and $1.9 million.

Klappich says that Gartner’s research also shows that 50 percent of companies have kept their investments about the same. “This is largely due to the economic climate and the fact that many companies have remained in a very cautionary investment mindset,” he says. “However, the fact that over 40 percent state it has increased is a positive sign.”

Regrettably, says Klappich, the fact that only 33 percent of respondents say they plan to buy software in the near future is proof that cautious attitudes prevail among logistics professionals. “This highlights that over four years into the recession companies are still extremely cautious and are not making wholesale changes in the IT landscape.”

About the Author

Bridget McCrea
Contributing Editor

Bridget McCrea is a Contributing Editor for Logistics Management based in Clearwater, Fla. She has covered the transportation and supply chain space since 1996, and has covered all aspects of the industry for Logistics Management and Supply Chain Management Review. She can be reached at .(JavaScript must be enabled to view this email address).

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