Wednesday, July 26, 2006

On-demand Solutions

On demand supply chain management solutions are more effective at reducing procurement costs than traditional licence solutions, according to research by the Aberdeen Group. Aberdeen conducts a lot of research into the global supply chain, much of these are published as free downloads on its website.

The analytical firm found that on demand solutions increase cost reduction capabilities by an average of 27.5 per cent, as opposed to 21.5 per cent for traditional supply chain management solutions. Aberdeen interviewed 135 industry executives in order to compile its On Demand Supply Management Benchmark Report.

IBM research indicates similar results with an interesting article that is tagged as "you snooze, you lose".

Bruce Richardson, the chief research officer of Boston-based AMR Research, who has grown along with the supply chain, commented on Forbes.com that "Even in the best-run companies, the demand side is not necessarily tied to the supply side".

In the coming months, lots of research and products will be released in the SCM market relating to the Demand Driven Supply Network. Watch this space.

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