Advanced Inventory Optimization: Tough Nut, But Worth Cracking  ARC

Complexity of solutions may push enterprises toward outsourced, software-as-service arrangements to tap substantial ROI, advisory group says


In the software as a service model, the software is leased rather than purchased outright by the user. Software as a service can be a potent sales tool for applications with high return on investment (ROI) such as advanced inventory optimization. According to Banker, "When I asked one company how long their payback period was following implementation, they said they had received full payback prior to the implementation." When asked how that could be, they explained that the AIO supplier came in and entered their data into the software to do an analysis of potential savings. Once the 'bake off' was done, the supplier hosted the solution and provided inventory targets while the implementation began. Twelve weeks later the implementation was complete, but the solution was already paid for prior to the company's version of the software going live."

More information is available on this study at http://www.arcweb.com/research/ent/aio.asp. The study includes profiles of 16 of the major suppliers servicing this market.

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