Since ERP spending has subsided within major corporations, the large vendors are looking to increase their value by solving the more complex business issues faced by organizations. A few areas where SCM and ERP vendors can add value is in advanced integration, and in the ability to handle very complex workflows that some of the tier two vendors may not be able to address. This is a necessary requirement, as companies are examining their supply chains to see if they can improve bottom-line results.
The supply chain market is progressing towards even further granularity within each module. There are a growing number of companies that specialize in a subset of one module; Valogix and Maple Lake, for instance, offer one solution for inventory planning, merchandise planning, demand planning, scheduling, forecasting, etc. These solutions can stand alone or integrate with other best-of-breed packages, usually within an ERP application or within a larger SCM solution. These niche companies execute one task, at a micro level that may not be available within an integrated SCM or ERP solution. There is increased demand for such specific requirements, as companies realize that only one part of the supply chain solution is needed (thereby further eroding the market for all SCM solutions). If a company decides that it may only use a specific functionality like demand planning, or a specialty product that addresses a supply chain niche, tier two vendors may be left out in the cold, thus eroding market share for extensive SCM solutions even further. This will also muddy the waters as to where all of these vendors will fit, and as to what share of the pie they can capture.
With the finite amount of customers available in each space, it is clear that the market is eroding. Niche players are forming a growing demand of their own, SCM is pushing upwards, and ERP is pushing down. Which vendors will emerge victorious?
Customers are faced with many idiosyncrasies that did not exist just a few years ago. Sweet spot achievement is being sought by organizations that can accurately assess their requirements, cut through the marketing hype, consider integration, and select a good fit to maximize efficiency. The overlap of modularity between SCM and ERP solutions has caused further confusion in the SCM market.
The ultimate solution will offer all the functionality needed. Ideally, the best solution would encompass ERP functionality with the addition of capabilities for SCE, down to a micro level. This would eliminate the need for separate systems.
It seems that SCM vendors have executed the upward expansion to the ERP market effectively—particularly in comparison to the way ERP vendors have handled the downward penetration to the supply chain market. SCM vendors have incorporated ERP-like modularity, and even offer these modules on a stand-alone basis if necessary.
Whether a company selects a best-of-breed SCE solution, an ERP application, or a niche market solution, it should consider its future requirements, and the possibility of global operations. A good solution will provide an easy and seamless integration to the company's current system while adding increased functionality—without disrupting current business operations.
The supply chain market is progressing towards even further granularity within each module. There are a growing number of companies that specialize in a subset of one module; Valogix and Maple Lake, for instance, offer one solution for inventory planning, merchandise planning, demand planning, scheduling, forecasting, etc. These solutions can stand alone or integrate with other best-of-breed packages, usually within an ERP application or within a larger SCM solution. These niche companies execute one task, at a micro level that may not be available within an integrated SCM or ERP solution. There is increased demand for such specific requirements, as companies realize that only one part of the supply chain solution is needed (thereby further eroding the market for all SCM solutions). If a company decides that it may only use a specific functionality like demand planning, or a specialty product that addresses a supply chain niche, tier two vendors may be left out in the cold, thus eroding market share for extensive SCM solutions even further. This will also muddy the waters as to where all of these vendors will fit, and as to what share of the pie they can capture.
With the finite amount of customers available in each space, it is clear that the market is eroding. Niche players are forming a growing demand of their own, SCM is pushing upwards, and ERP is pushing down. Which vendors will emerge victorious?
Customers are faced with many idiosyncrasies that did not exist just a few years ago. Sweet spot achievement is being sought by organizations that can accurately assess their requirements, cut through the marketing hype, consider integration, and select a good fit to maximize efficiency. The overlap of modularity between SCM and ERP solutions has caused further confusion in the SCM market.
The ultimate solution will offer all the functionality needed. Ideally, the best solution would encompass ERP functionality with the addition of capabilities for SCE, down to a micro level. This would eliminate the need for separate systems.
It seems that SCM vendors have executed the upward expansion to the ERP market effectively—particularly in comparison to the way ERP vendors have handled the downward penetration to the supply chain market. SCM vendors have incorporated ERP-like modularity, and even offer these modules on a stand-alone basis if necessary.
Whether a company selects a best-of-breed SCE solution, an ERP application, or a niche market solution, it should consider its future requirements, and the possibility of global operations. A good solution will provide an easy and seamless integration to the company's current system while adding increased functionality—without disrupting current business operations.
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