Inbound Logistics | July 2007 | Digital Issue

NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS

need to treat automatic identification (AutoID) as one layer of the solution so that multi-modal AutoID tasks are sup- ported, he adds. — Amy Roach Partridge Meeting Mandates With Technology C utting costs has historically been the top priority for supply chain professionals. Most companies today, however, are looking to improve supply chain processes by meeting customer mandates for faster and more accu- rate fulfillment, according to a new study by Boston-based research firm Aberdeen Group. Supply chain executives are address- ing this need for new approaches and priorities by increasing their spending

on supply chain technology in 2007. Five times as many companies plan to increase, rather than decrease, IT spend- ing, shows the report, The Supply Chain Innovator’s Technology Footprint 2007 , which surveyed more than 200 compa- nies at the start of the year. The survey’s aim was to explore companies’ technol- ogy investment plans en route to supply chain improvement. What technology do most companies plan to invest in? Inventory management stands out as a top priority, with 57 percent of respon- dents listing it as their number-one technology pick. “Companies that have not yet refreshed or expanded their use of inventory management technology should put it on their to-do list this year,” suggests the study. Supply chain visibility ranks a close sec- ond to inventory management, with 55

percent of participants listing it as the big- gest priority for technology investment. Other interesting findings from the Aberdeen report include: ■ Companies looking to create new supply chain innovations are 1.5 times more likely to view globaliza- tion as the top driver for supply chain improvements. ■ Services-oriented architecture and radio frequency identification technologies are not high priorities for warehouses in 2007. ■ Companies are increasingly looking to on-demand software and Web-based applications to address sup- ply chain visibility. ■ Forty-one percent of overall respondents–and 77 percent of large enterprises–plan to spend $500,000 or more on logistics technology in 2007. — Mark Rowan

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