Supply Chain Trends and Issues: Our Weekly Feature Article on Important Trends and Developments in Supply Chain Strategy, Research, Best Practices, Technology and Other Supply Chain and Logistics Issues  
 
 
  - Nov. 11, 2014 -  

Eighth Annual Gartner-SCDigest Study to Delve Deeper Into Supply Chain Maturity Impacts, Getting Value from SCM Software

Research has Now Become One of the Most Important Studies in the Supply Chain Discipline; As Always, Complimentary Gartner Reports Available to Respondents

 
     
     
  by SCDigest Editorial Staff  
     
 

For the eighth consecutive year, SCDigest has partnered with the researchers at Gartner to take a deep look at supply chain practice and technology, surveying SCDigest readers to form the basis for what has become one of the industry's most important and influential research projects.

SCDigest Says:
"We see that companies have and continue to invest heavily in SCM technologies, but we want to dig deeper into whether these investments are providing the anticipated value expected," Klappich noted.

Click Here to See Reader Feedback

"There were several importent observations from last year’s study," said Gartner vice president Dwight Klappich, who is leading the research effort again along with Chad Eschinger. "First, as we dug deeper into supply chain maturity and then looked at respondents answers to certain questions, we came away with the belief that many organizations talk a good game and say they view SCM as strategic, but that their actions suggest that they really remain largely operational in their day to day activities."

 

Klappich says the study found, for example, that there was a renewed emphasis on cost reduction and process efficiency and less emphasis on more forward-looking opportunities such as customer service, using supply chain to grow the business, or developing process innovation, all of which dropped in importance from previous years.

 

"What was interesting was that while cost reduction was high on the priority list, cost pressure was not seen as a notable obstacle or challenge keeping SCM organizations from meeting their goals and objectives," Klappich added.

 

Please Respond to Study

 

A second observation from the 2013 study is that complexity, variability and lack of visibility remain major barriers to success despite all the investments SCM organizations have made in technologies to target these issues, Klappich noted.


"A key question becomes: Is this because the systems are inadequate? When we looked at utilization of key applications we found that for a lot of software companies significantly underutilize the technologies they already own," Klappich observed. "The data showed that across applications from WMS to TMS to supply chain planning and more, over 50% of companies by category said they only partially utilize the applications they own. This presents a real opportunity."

 

For the 2015 study, Klappich said, "We will continue to look at year over year changes in areas like supply chain priorities and obstacles, but will also focus more on digging into the how SCM maturity influences later decision-making."

 

He noted that last year's study was the first to delve deeper into evaluating SCM maturity in this way, and that the research highlighted that there are distinct differences in decision-making based around various levels of maturity - a relationship that has not been well studied to date.

 

The research will also look at the software utilization issue in even more detail.

 

"We see that companies have and continue to invest heavily in SCM technologies, but we want to dig deeper into whether these investments are providing the anticipated value expected and to see how utilization and maturity affects these results," Klappich noted.

(Supply Chain Trends and Issues Article - Continued Below)


 

 
 
CATEGORY SPONSOR: LONGBOW ADVANTAGE - JDA SUPPLY CHAIN CONSULTANTS

Download Longbow Advantage

Business Briefs

 

 

The Keys to WMS Success,

Maximizing JDA WMS

Performance and More

 

 

 

 

 

 

For example, Klappich said Garnter would like to know if companies with high maturity also have stronger technology processes and thus utilize their applications better. That may sound like a reasonable assumption, Klappich said, but needs to be tested.

 

Additionally, Klappich said that while in past years respondents have said that technology is a source of competitive advantage for them, the research will look at  whether this actually manifests itself in differences between high and lower maturity organizations.

 

Below is an interesting chart from last year's report, based on asking respondents about what  their key supply chain initiatives would be over the next year.

 

 

 

Add your thoughts to the 2014 data set by participating in this year's survey. We look forward to your help again in 2014:

 

 

As usual, study participants will receive complimentary Gartner research for spending 10 minutes or so to complete the survey. They will have the option for a free download of one of the following reports, each with a value of several hundred dollars.

 

The Gartner Supply Chain Top 25 for 2014
   
Supply Chain Management Vendor Guide, 2014



This year's research will again explore many interesting and valuable trends and practices for the supply chain. We hope you can offer your support by taking the survey.

 

"While there are other studies that look at SCM business drivers, goals and obstacles, this study looks at these as well but with a lens focused on the role technology plays in helping SCM organizations meet their obligations." Klappich concluded. "I believe this is one of if not the most comprehensive study focused on the role of IT in SCM."

Any comments on these research goals? Also use the Feedback button below to contact us if you have any problems taking the survey.

SCDigest is Twittering!

Follow us now at https://twitter.com/scdigest

 
 

Recent Feedback

 

No Feedback on this article yet

 

.