Supply Chain News / eSupply Chain

Lack of IT Investment Puts Supply Chains under Strain

April 2, 2012
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A recent IDC study, entitled In Pursuit of Operational Excellence, highlighted that supply chain management (SCM) is a growing concern for manufacturing enterprises, with nearly 50 per cent of more than 350 respondents indicating that its complexity is expected to grow over the next three years.

SCM is the coordination of materials, information and finances as they flow from supplier, to manufacturer, to retailer, to consumer. Applications can be used, through ERP systems and other large-scale software integrations, to monitor these flows, with the aim of reducing inventory and ensuring products and information are at the right place, at the right time, at the lowest possible cost.

However, with the European economy still in the doldrums, with GDP expected to grow only 0.6 per cent in 2012 compared with forecast US growth of 1.9 per cent, do companies still have the resources to address supply chain complexity? And if they don’t, what will the long-term implications be?

The consensus among industry experts is that enterprises in Europe are no longer implementing costly software to tackle their supply chain challenges, because the return on investment is too long and savings will only be seen over a number of years.

This is only part of an article is taken from Derek du Preez's "Lack of IT investment puts supply chains under strain" as it appeared on . Please read the well-written article in its entirety here.

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