www.supplychainstandard.com


ERP systems 19


Too old towork S


are investing in the latest technology


Parts of Asia


and they are getting the


upply chains are critically dependent upon the efficiency of the IT structures that support them. However, thenatureof supplychainshas changed significantly in recent years, and in retail, that


change is quite radical. Networks have replaced chains, interfaces with the customer have proliferated, and competitive advantage is won through greater and close collaboration with suppliers, customers and partners. Our supply chains have changed, but has our IT? The technology has certainly moved a pace and


full benefits and value out of it.


through the wonders of the internet, provides the wider connectivity now desired. Supply chains are process driven and therefore information needs to be consistent and standardised to be useful. But for most long- established businesses in the West their systems have evolved over time and are now an eclectic mix of point source solutions andmismatched ERPs. Can these systems be made to drive supply chain


processes that requiredovetailedsourcesof information? How are these systems going to cope with the demands of the future? And can they provide the competitive edge needed for growth? According to a recent large-scale enterprise IT spend


study by Gartner, a modest increase in worldwide software spend through 2014 will be driven by greater adoption of cloud-based software. The analysts expect


Supply Chain Standard April 2013


Supply chains have changed,but has our IT? Lack of investment in supply chain systemsmay be putting future growth at risk forWestern companies. By Nick Allen


cloud services’ spending to continue to outpace other parts of the ITmarketplace,withworldwide spending on cloud services growing to 17.7 per cent through 2016. However, regionswithhigher ITmaturity suchasNorth


America andWestern Europe, expect lower or no budget increases over thenext two years.The report suggests the largestbudget increases insoftware spendwillbe inareas with immature IT infrastructure, such as Eastern Europe, Latin America and Asia/Pacific. “UK and EMEA companies have not been investing in


major platform changes in the last few years due to economic conditions, whereas Asia, and now the US again, have been investing. But in Europe companies have beengoing for easilymanagedprojects thatprovide a short time to benefit and a quick ROI,” AndrewDalziel, VPmarketing and productmanagement EMEA, Kewill. He suggests that retailers, manufacturers and


distributors intheUKare keeping theiroldsystems going rather than investing in new systems. “Parts of Asia – India and China – are investing in the latest technology and they are getting the full benefits and value out of the latest technology – systems that offer a better fit with more streamlined processes,” he says. It seems mature markets are burdened by budget


constraints and legacy systems that are becomingmore expensive tomaintain,making it difficult for companies


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26