Published in Solutions Integrator by Joe Devlin Click here for list of articles
  Oct 15, 1998 97% of manufacturing executives consider SCM critical to long term success.
SummaryMain ArticleJava Perks for SCMTarget the SaleStaying Focused
Vendors 
 
 

Picture associated with 698_SCM

 

If you're a technical integrator with business expertise in manufacturing, your timing is perfect. Customers are begging for supply-chain-management solutions that meet their needs.

 

     

ERP AND SCM SOFTWARE FORECASTS

Total company revenue ($billions)
Growth rate
 
1996
1997
2002
1996-1997
1997-2002
ERP
$7.5
$10.6
$50.5
41%
37%
SCM
$1.1
$1.6
$12.1
53%
50%
Source: Advanced Manufacturing Research

 

Summary

A revolution is happening throughout the supply chain that connects retailers, distributors, manufacturers, and raw-materials suppliers-a revolution in the way manufacturers interact with partners, suppliers, and customers.

While most routine interactions in the manufacturing space still involve phone, fax, or e-mail, these options are being replaced with electronic data interchange (EDI) and Internet commerce.

The first round fired in the supply-chain revolution came when companies like SAP, Oracle, Baan and DataWorks introduced enterprise resource planning (ERP). ERP systems track inventory as products move from materials to manufacturing to inventory to distribution.

The revolution continued with the arrival of full-fledged supply chain management (SCM) applications from vendors like Manugistics (Rockville, MD) and i2 (Irving, TX) that took ERP to the next level. Besides tracking inventory, SCM performs more complex analysis of data, allowing companies to predict demand and adjust materials orders and production schedules accordingly.

If you're a technical integrator with business expertise in manufacturing, your timing is perfect. Customers are begging for supply-chain-management solutions that meet their needs.

Sidebars:

Java Perks for SCM
   A West Coast integrator brews an interesting and technically educational manufacturing solution with Java.
SCM Obstacles and Roadblocks
Why SCM Solutions must be sold to Top Management
The importance of staying focused and finding the right partner

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