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21/07/2006 10:14
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On demand supply chain management solutions are more effective at reducing procurement costs than traditional licence solutions, according to research by the Aberdeen Group.
The analytical firm found that on demand solutions increase cost reduction capabilities by an average of 27.5 per cent, as opposed to 21.5 per cent for traditional supply chain management solutions.
Aberdeen interviewed 135 industry executives in order to compile its On Demand Supply Management Benchmark Report.
The report found that nearly two-thirds (65 per cent) of large enterprises are focused on faster implementation and return-on-investment, compared to just over a third (38 per cent) fixed on lowering costs.
Nearly half (47 per cent) of the respondents pointed to the importance of being able to implement a strategy across the enterprise, while 45 per cent are attracted to supply chain management solutions that involve economical IT procurement.
"By enabling faster, enterprise-wide rollouts of a supply management solution, enterprises utilising an on demand model deploy the value proposition of supply management at a much faster rate than traditional 'licence-and-install' solutions," commented the vice president of global supply chain management at Aberdeen, Sudy Bharadwaj.
Earlier this month, Aberdeen published a report concluding that procurement firms should offer "spend intelligence" software as a supply chain management solution.
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