Collaborative approach and integrated solutions hold huge potential for manufacturers in Supply Chain Management Markets

The global supply chain management (SCM) software and services markets have gained momentum with the introduction of radio frequency identification (RFID) technology and the global trend of outsourcing. SCM continues to differentiate competitors and has emerged as a driver for todays enterprises, as managing material and information flow remains highly critical. Benefits derived from SCM, such as inventory management, cost savings, and customer satisfaction comprise the basic requirements for competitive positioning.

New analysis from Frost & Sullivan, World Supply Chain ManagementSoftware and Services Markets, reveals that revenues in this market totaled$6.50 billion in 2006, and estimates this to reach $11.64 billion in 2013.

Supply chain event management (SCEM) provides companies with real-time alerts on any irregular events in the entire supply chain, which enables the company to make informed decisions, notes Frost & Sullivan Research Analyst Dushyant Mehra. âœThe growing need to provide suppliers and management with early warnings based on data obtained from internal Enterprise Resource Planning (ERP) and other supply chain management
systems, acts as a major driver for the uptake of supply chain solutions.

The supply chain coordination (SCC) segment will likely play a key role in the near future as event management and performance management applications emerge as competitive tools in managing the highly complex supply chains by reducing the lead time and cost. These applications help companies detect, diagnose, and resolve performance glitches before they become expensive problems. Therefore, knowledge of the real-time problems in the supply chain will help companies serve their customers efficiently.

However, the increasing need for integrated solutions represents a key challenge for supply chain vendors. Due to rising complexities in the supply chain, the supply chain planning (SCP), supply chain execution (SCE), and SCC components need to function together to achieve supply chain optimization.

There is an increasing preference for supply chain solutions that integrate planning, execution, and coordination of the entire supply chain network, notes Mehra. By using technology to decide on the appropriate courses of action and acting rapidly on these decisions, businesses cansatisfy their customers requirements better and deliver products at the appropriate place and time.

Supply chain vendors will be required to pay greater attention to product customization and supply chain visibility. Since visibility of goods in the supply chain represents a critical factor in maintaining optimal inventory levels, supply chain visibility continues to gain significance. Likewise, customization slowly gathers pace due to the increasing demand from cost-conscious customers.