Supply chain software is failing to deliver

27 April 2005
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28 April 2005 | Liam O'Brien

IT supply chain software is not living up to promises made by suppliers, according to a survey from management consultancy PRTM.

Based on responses from 68 supply chain executives across 14 industry sectors, 71 per cent reported systems such as enterprise resource planning software (ERP) delivered half or fewer of the anticipated benefits.

Only 11 per cent of respondents said products exceeded their expectations.

Seven per cent said the software actually made things worse. The most common reason for poor performance was poor integration of supply chain IT and other core processes.

Nearly a quarter, 22 per cent, said maximising systems' capabilities were hampered by senior management failing to see the supply chain as strategic to company performance.

Geoff Tomlinson, who contributed to the PRTM report, said: "The problem is if your processes, such as collaboration with suppliers, are not good, then you don't get full benefits from supply chain implementations."

Around 49 per cent of those questioned highlighted the need to improve the quality of their underlying processes.

Forty-three per cent cited the requirement to boost internal skills such as supply chain planning and collaboration.

The report found UK firms lag behind German and French competitors in terms of online collaboration in the supply chain.

SMapr2005

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