Supply Chain Information Technology Perspectives

Feb282011

Top 11 Priorities in 2011 for Supply Chain IT: Know What Works for Your Company and Act Now

Published by SCIT.Team at 6:46 AM under global trade management | Technology

It’s no secret that the recession was a test of endurance for most companies, and no area of the supply chain has gone untouched by the shifting economy. But what we want you to think about today is how this has greatly impacted your company’s Supply Chain Information Technology (SCIT).

As the economy continues to strengthen, it’s time to take a look at your SCIT to determine how to get back on track and move toward profitable growth. That is why we came up with the following list of Top 11 Priorities for SCIT in 2011. (Visit our website for the expanded article)

Priority #1 - Make some SCIT investments now. The halt in purchasing new systems or upgrades has generated a backlog that will cause bottlenecks in the future. Don’t wait until the masses make their decisions to invest.

Priority #2 - Decide whether to replace or upgrade. Deferment has been a common tactic for making a decision on replacing or upgrading a system. Now is the time to understand the status of your current system(s) and make an educated decision before the purchase.

Priority #3 - Get a handle on Software as a Service (SaaS) and the Cloud. As these services become more popular, consideration of SaaS and hosting will become the new normal for most SCIT initiatives. While this does not mean that on-premise will become passé, more companies will be making their first foray into the SaaS world or at least factoring Saas into their plans.

Priority #4 - Establish the ‘Next Step’ in Your WMS Strategy. Evaluate your current situation relative to your original selection objectives and develop a plan for the ‘Next Steps’ to drive further efficiencies. Conduct an operations and technology audit and identify the specific opportunities to leverage the benefits of the investments made to date.

Priority #5 - Find TMS solutions even more attractive. Transportation spend is a key source of supply chain cost, yet the majority of practitioners in a recent survey neither use TMS nor have plans in place to even consider TMS deployment. This is an area where you may be able to improve productivity and efficiency.

Priority #6 - Enable SCIT through product extensibility. When considering the right supply chain technology, include “suite vendors” in the mix, as there may be other applications that should be considered. Suite vendors have been known to offer attractive pricing options when multiple modules or products are purchased.

Priority #7 - Handle compliance mandates in an efficient manner. Regulatory compliance already plays a prominent SCIT role in publicly traded companies and certain industries. Effectively leveraging SCIT applications and resources will play a critical role in handling mandates in an efficient manner.

Priority #8 - Put data to work through supply chain intelligence. In today’s market, attempting to use spreadsheets to develop a sourcing model and calculate key factors is not practical, if feasible. Business Intelligence (BI) technology handles considerable data, resources and technology needed to comprehend these key sourcing factors.

Priority #9 - Contend with the talent gap. The competition to hire and retain key positions will be fierce. As one means to deal with the talent gap, companies can look at their core competencies and determine the best areas for outsourcing.

Priority # 10 - Keep a global perspective. As the business world becomes more and more global and security is quickly becoming a larger issue, companies are depending more on technology. At the same time, companies also have the option to take advantage of Global Trade Management (GTM), which is an area that sees a great deal of return in a short time-frame, in terms of IT investment.

Priority #11 - Close the open checkbook. SCIT projects have been fertile grounds for time and expense vendor contracts. Now is the time to establish stronger vendor-client relationships, and focus on the terms and specifics of the contract.

The list above shows how SCIT priorities will be developing throughout the year. However, this is a generalized list that may not be applicable among all companies and industries. With companies trying to improve bottom-line performance, these top 11 will only continue to become more vital. Let us know your thoughts on this list and what you are doing to cope with the challenges of 2011.

-- SCIT Perspectives Blog Team

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