The supply chain suite

Software vendors have talked about a suite of execution solutions for years. Modern’s readers appear to be buying.

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 7/20/2006

Not that long ago, most warehouse management vendors were just that: WMS vendors.

But starting five or six years ago, leading WMS companies began evangelizing about the idea of a supply chain execution suite. That was an extended set of applications with WMS at the core, complemented by other applications that could lead to greater productivity gains.

While the idea has been slow to take hold in the market, Modern’s readers are starting to buy into the concept.

At 56%, WMS is still the most frequently used supply chain execution application, ranking right behind ERP (60%) as the most used application overall. That makes sense: both are foundational applications.

But look more closely, and you’ll see that other applications are taking root. Thirty-five percent of respondents use a labor management solution and 32% plan to purchase or upgrade a labor system in the coming year. An almost equal number uses a transportation management solution (31%) and 35% plan to purchase or upgrade a TMS in the next year.

Yard management systems (YMS) extend the view of inventory beyond the DC by tracking trailers in the yard. Eleven percent of respondents use a YMS and 16% plan to purchase or upgrade a YMS in the coming year.

Something similar is happening in the factory, where 17% of respondents said they use a manufacturing execution system, and 22% plan to purchase or upgrade theirs in the coming year. And as business goes global, 22% use an import/export management solution, and an equal number plan to purchase or upgrade to an import/export management system in the next 12 months.

Finally, as the pace of business increases, supply chain planning (SCP) applications that sit between an ERP and WMS system are once again gaining traction: While only 23% reported using a SCP solution today, 43% plan to purchase or upgrade in the next 12 months.

All of those responses highlight the growing importance of an efficient supply chain in a competitive global economy.