How Companies Are Gaining Positive ROI and Strategic Benefits from SCM Technology
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Competitive pressures, globalization and increasingly complex offshore manufacturing relationships are spurring organizations to expand their supply chain management (SCM) systems, which encompass a wide variety of technologies and capabilities. According to a survey conducted by our research partner Computer Economics, organizations that have implemented SCM technology report good return on investment (ROI), although they must carefully manage the total cost of ownership (TCO). The strong ROI characteristics of SCM are encouraging smaller and midsize companies to join their larger peers in adopting the technology. SCM technology providers offer increasingly sophisticated capabilities, at price points that encourage further adoption. The complexity of these applications, combined with the need to change business processes, however, mean that organizations will need to focus on change management in order to realize SCM benefits.
Based on the Computer Economics survey, this report quantifies the current adoption and investment trends for SCM systems as well as the benefits that are driving companies to expand their SCM implementations. We assess these trends by organization size, sector and geography. In terms of economics, we look at the ROI and TCO experience of those that have adopted SCM along with current investment per SCM user. We conclude with practical advice for those considering investment in SCM technology.
This report provides enterprise buyers with a view of the current adoption trends and economic experiences of organizations that have implemented supply chain management (SCM) software. It also offers practical guidelines for implementation success. For SCM technology providers, this paper provides an overview of current market and investment trends among organizations planning or considering investment in new SCM capabilities.