Product category:
Work-in-progress tracking software
News Release from: ILOG | Subject: Supply chain usage survey
Edited by the Manufacturingtalk Editorial
Team on 12 August 2002
Two-thirds of manufacturers are out of
synch
ILOG and APICS survey finds failure to implement supply chain management applications despite recognised benefits.
A co-branded survey developed and administered by ILOG, the world's leading supplier of enterprise-class software components and services, and APICS - "The Performance Advantage", the leading publication for resource management professionals in the manufacturing sector, has revealed that two thirds of manufacturing companies do not successfully synchronise supply chain operations with their partners, ultimately leading both to added distribution and planning time and to increased costs The survey, recently conducted with ILOG's customers and APICS' 60,000 members and readers, also revealed that a majority of manufacturing companies fail to take advantage of supply chain management software to address synchronisation despite the recognition that the technology is both readily available and provides valuable return on investment
This article was originally published on Manufacturingtalk on 12 Jan 2001 at 8.00am (UK)
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APICS - The Performance Advantage is the flagship publication of APICS, the Educational Society for Resource Management.
ILOG and APICS designed the nine-question survey to examine the extent to which manufacturing companies, using the supply chain management solutions available today, have been successful in synchronising -- sharing information, collaboratively scheduling production and delivery, and planning future projects as a team -- their supply chain operations with those of their partners.
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While nine out of 10 respondents believe that supply chain planning tools could help to address their synchronisation issues, only one out of three respondents said that their company was planning to address supply chain synchronisation issues in the next six months.
This affirms the conclusions reached earlier this year by AMR Research, which found in a survey of C-level executives of leading Fortune 500 companies that, "Although more than 90% claimed it was a strategic necessity or very important to them, only 27% saw it as their responsibility to lead the collaboration effort." "Investments in effective and efficient supply chain management solutions are clearly top-of-mind for the manufacturing sector," said Christian Deutsch, general manager for ILOG's Value Chain Management business division.
"As IT budgets revive, we expect that manufacturing companies will invest in supply chain planning solutions to synchronise their operations, reduce costs and realise fast return on investment." Other key findings of the survey included: * More than eight out of ten respondents believe it is very difficult to coordinate disparate software systems with those of their partners.
* More than two thirds of respondents find it difficult to coordinate their supply chain operations with those of their outsourcing partners.
* Two thirds of those respondents who do currently use supply chain management applications use different software solutions than their partners, creating a lack of access to valuable external data that leads to incomplete visibility into their supply chain.
"Despite all the exposure and publicity given to supply chain management applications, a large percentage of respondents still have not implemented these kinds of solutions," said Doug Kelly, editor of APICS.
"The results of this survey indicate that many manufacturers have a way to go in taking advantage of the tools that enable true supply chain synchronisation." About ILOG - dually headquartered in Paris and Mountain View, Calif., ILOG is the world's leading supplier of software components.
Founded in 1987, ILOG offers embeddable optimisation, visualisation and business rule components that dramatically shorten the development time of enterprise applications in the supply chain, telecommunications, transportation, financial services and government and aerospace industries.
ILOG already has a significant market share for its optimisation technology and is playing an active role in fostering e-business software innovations.
Visit www.ilog.com for additional information.
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