Saturday, May 14, 2005

AMR Research finds increase in SCM initiatives

A recent AMR Research alert highlight states that "The freeze in spending [on supply chain management initiatives] is starting to thaw." They also state that "Our research shows that Supply Chain Planning (SCP) easily exceeds any other business process or software project category for types of projects clients are engaging." According to AMR Research, there is an increase in companies that are starting to invest in their SCM initiatives in the last 6 months. It intuitively makes sense to me.
The initiatives are not starting with huge upfront commitment of license money for buying software, though. The areas that they have highlighted seem to jive with what has been written here before - Sales & Operations Planning, focusing on understanding sell through at retailers for planning supply chains rather than focusing on pushing material to the retailer which leads to channel stuffing & inventory optimization.
Do you buy AMR Research's analysis that there is increase in SCP projects?
Karthik Mani

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