Subscribe to our free, weekly email newsletter!


Supply Chain Software Survey: Off the fence and into the future

Modern readers evaluate their usage of materials handling software technology, its value to their organizations, and spending plans for expanding and updating existing applications.
By Josh Bond, Associate Editor
May 01, 2013

Software, innovation and spending
The results of this year’s survey clearly reflect the importance of materials handling software to our readers. Nearly 43% of them report their use of such systems has increased in the last two years, while 52% said their use of materials handling software has stayed the same. Fewer than 5% said it has decreased. 

The survey first asked readers to characterize their companies’ adoption of materials handling technology. Last year, 16% of respondents admitted they were among the last to adopt technology, while only 9% considered themselves innovators. This year, just 11% are slow to adopt, while 12% feel they are leading the way. In the middle of the curve, readers who reported their companies “cautiously embrace change” fell from 46% last year to 44% in 2013. Those who pledged to take a wait-and-see approach grew from 15% to 19%.

Despite any hesitancy suggested elsewhere in the survey, when asked about spending predictions, readers expressed plenty of intent to buy. Of those who plan to spend on supply chain software in the next 12 months, the average anticipated spending increased from about $400,000 in 2012 to $572,000 in 2013. In 2013, 13% plan to spend $1 million or more, including 3% who plan to spend more than $5 million. About 46% of respondents plan to spend less than $100,000.

 

In this economy
When asked how the economy is impacting the adoption of materials handling technology, 18% of readers said they plan to move forward with new software investments this year. That’s down significantly from last year’s 27%. It seems many have decided to hold off on software investments this year. For the last two years, just 20% of readers said they would hold off, but this year the number spiked to nearly 27%. Of course, it is possible that some of these respondents pulled the trigger on software plans last year and are now waiting for those initiatives to bear fruit.

At 17%, a full 5% more than last year, many readers have decided to upgrade existing software rather than buy new software packages. A growing number (8%) also plan to outsource software implementations, up from 5% in 2012. For those readers who license software, there are four different approaches to implementation. As with last year, in-house staff is most often tasked with some part of this responsibility (69%), while 36% work with the software supplier. Systems integrators are brought in for 26% of installations, while 18% go with a business management consulting firm.

About the Author

image
Josh Bond
Associate Editor

Josh Bond is an associate editor to Modern. Josh was formerly Modern’s lift truck columnist and contributing editor, has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce.


Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

This complimentary white paper addresses areas of potential benefit to a grocery distributor considering an investment in automated case picking technology.

In 2015, a new era in shipment pricing will go into effect when major carriers implement dimensional ("dim") weight pricing for all ground packages regardless of their size. This complimentary white paper, "Dimensional Weight: Don't Let it Weigh You Down", can help you optimize your packaging operation to minimize the financial impacts of dimensional weight pricing.

Replacing older, less-efficient lift trucks at the right time can reduce your maintenance costs, improve your productivity and, most importantly, save money and maximize your return on investment. So how do you determine the right time to make a new, significant purchase? Download this complimentary white paper for guidance on how to determine the ideal time to replace lift trucks and how planned replacement can benefit your operation.

The prolonged operating hours of automated distribution operations leave limited time for maintenance. For tightly-scheduled fulfillment operations, unplanned downtime not only cuts into slim profit margins, it jeopardizes future business and customer loyalty. Download this complimentary white paper to learn five mission-critical benefits of implementing a resident maintenance program.

Debut of Pharma EXPO plays crucial role in increase.



© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA