Supply chain software on the rise
If record attendance at D/C Expo is any indication, interest in supply chain software and related technology is starting to make a comeback.
Staff -- Modern Materials Handling, 7/1/2004
After three years of drooping demand for supply chain software, it seems that companies are actively pursuing the notion that now might be the time to make purchases that have been long delayed.
So says Thomas Dulaney, president of C.S. Report Inc., sponsor of the leading supply chain software and related technology show, D/C Expo. He reports that this year's event boasted a 20% increase in attendance from last year, making this the largest in more than 20 years. In all, 1,750 attendees visited Chicago's Navy Pier in mid-May to evaluate the latest systems and services from 181 suppliers.
Dulaney attributed the boost in attendance to a better economy, the buzz around radio frequency identification (RFID) technology, and the need to improve supply chain efficiencies. Based on his discussions with show attendees, Dulaney says people are now actively looking for the warehouse management systems, bar code scanners and other technologies needed to achieve higher productivity.
"Companies today are being forced to ask themselves if they have the right systems in place for handling increased demand," says Dulaney. "Moreover, they are realizing the savings and benefits of an effective supply chain, especially as logistics becomes more interconnected and global."
How does this translate into purchasing intent? Fifty-five percent of attendees said they plan to buy software or systems within six months of the show, while 87% have purchasing plans within the next year.
This was the first year that RFID technology had a strong presence at the show.
"Everyone recognizes the compelling need for RFID, but the motivation right now is driven mostly by mandates from Wal-Mart, Target and others," says John Karonis, director of fulfillment technology with consulting firm Kurt Salmon Associates and moderator of an RFID panel discussion at D/C Expo.
What's more important is to move beyond compliance issues and approach RFID as a strategic, collaborative solution in order to reap the technology's benefits, he says. When deployed with other technologies in a fully synchronized environment, RFID can improve a company's decision making and the speed and accuracy with which product moves throughout the supply chain, adds Karonis.
The attention paid to RFID was evident from strong attendance at those seminars and visits to booths featuring the technology. "Many companies are interested in RFID solutions because they're eager to learn how RFID will deliver measurable benefits to their warehouses," says Dulaney.





















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