Amazing Story on the Returns of Supply Chain Software

The Actual Numbers

We were shocked when we found this story when researching our book. We knew that many supply chain implementations failed to meet expectations, but the numbers below really surprised us. This supports the concept that companies are putting in overly complex solutions. Think about it for a moment; if many implementations fail to provide value, what is the easiest remedy? We would say simplifying the implementation. We have no idea how this relates to SCM implementations.

Supply-chain software, such as order-management, inventory-management, demand-planning, and logistics applications, has been around since the late ’90s. But according to Forrester Research, in a recent survey of 22 business executives’ at large manufacturing and distribution companies, only 41% have realized a noticeably positive return on investment from their supply-chain management systems.

AMR Research reports that about 65% of large companies have implemented supply-chain software, but probably less than a fifth of those find that the software makes a huge difference to their businesses. “When you start poking around, a company buys the software and is using it in just a few places,” says John Bermudez, senior VP of research at AMR Research. “It hasn’t penetrated the company.” That’s changing, as software vendors, feeling the pressure of a slow economy.

Reference

https://www.informationweek.com/news/software/enterpriseapps/showArticle.jhtml?articleID=6900160