44 DC VELOCITY JUNE 2015 www.dcvelocity.com
technologyrevie w BY JAMES A. COOKE
SUPPLY CHAIN SOFTWARE
ONE OUT OF EVERY TWO SUPPLY CHAIN
software deployments is falling short when it
comes to delivering the expected return on the
investment. That was the surprising finding
of this year’s survey on supply chain software
and how logistics professionals are using it.
Designed as a follow-up to a study conducted
last year, this year’s research looked specifically
at which applications are most popular, what
kind of payback they’re providing, and the
challenges users face to successful deployment.
To conduct the study, DC VELOCITY teamed
up with Boston-based Nucleus Research to
survey readers of DCV and its sister publication, CSCMP’s Supply Chain Quarterly,
on their use of supply chain applications.
Two hundred and fifteen usable responses
were received from readers of the two magazines; those responses formed the basis for
the findings reported here. As for the type of
business they worked for, the survey respondents covered the gamut, with 29 percent
hailing from manufacturing, 21 percent from
third-party logistics services, and 18 percent
from the wholesale distribution side. Another
14 percent worked in retail, 6 percent in transportation, and the remaining 12 percent in
“other” industries. Respondents came from
organizations of all sizes, with roughly a third
working for companies with annual revenues of under $100 million, a third for
companies with revenues between $100 million and $1 billion, and a third for
corporations with revenues over $1 billion.
WMS ON TOP AGAIN
So what software tools are readers using? As was the case in last year’s survey,
warehouse management systems (WMS) topped the list, with 57 percent of
respondents using this type of solution. Given that so many of DC VELOCITY’s
readers are involved in running distribution centers, this came as little surprise.
However, the survey did indicate some disparity in WMS adoption rates among
companies of various sizes. For instance, 82 percent of respondents from companies with annual sales between $1 billion and $5 billion were using a WMS,
The pitch is that supply chain software will
slash costs and take performance to new
levels. But our exclusive survey finds that
nearly half of software users have not gotten
the expected return on their investment.
Where’s the payback