SCM Technology Satisfaction Higher than Reported?

Most supply chain technology buyers ultimately satisfied with solutions, ChainLink Research study finds

Most supply chain technology buyers ultimately satisfied with solutions, ChainLink Research study finds

Cambridge, MA  November 26, 2003  Most buyers of supply chain software are ultimately satisfied with their software, and more than half have purchased more software from the same vendor, according to a new study from supply chain consultancy ChainLink Research.

The study, conducted by veteran supply chain researcher Ann Grackin, reviewed more than 2,000 supply chain technology projects, including initiatives involving solutions from such major vendors as Adexa, i2, Logility, Manugistics, PeopleSoft/JD Edwards, SAP and Webplan.

The consultancy collected user and vendor data about advanced planning implementations over a four year period, including proceedings from conferences, user presentations, user interviews and surveys, as well as project management reports and problem logs from major consulting firms and vendors.

The study revealed that more than 80 percent of buyers of supply chain software are ultimately satisfied with their software, and more than 57 percent had purchased more software from the same vendor.

Grackin said that the new study dispelled the "myth" of widespread supply chain technology project failures. "There is always more to be done by users, many untapped opportunities," she said. "But statements that most of these supply chain projects were failures are patently false."

Responsibility for project issues and failures was evenly shared between vendors, consultants and users who failed to manage or make requisite business changes to take advantage of technology value, the study found.

In addition, the study suggests that there is no such thing as a "standard" implementation. "Each project has to deal with unique processes, technology environments and organizational constraints to achieve success," ChainLink reported.

Based on its research, the consultancy asserts that the high project failure statistics reported in the year 2000 are largely behind the industry  and that solution providers are finding willing buyers among companies looking to improve their supply chains.

"Best of breed vendors continue to create differentiated value for supply chain users by delivering more advanced processes like [available to promise (ATP),] [capable to promise (CTP), etc.," ChainLink asserted, adding, "Users continue to desire improved supply chain processes using technology as a core enabler or catalyst."
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