To: zwing_88 who wrote (79 ) 3/18/1999 10:35:00 AM From: waldo Read Replies (1) | Respond to of 895
INFORMATION WEEK March 15, 1999, Issue: 725 Section: IT Management Supply-Chain Revival -- With Y2K, ERP Projects Ending, Businesses Focus On Supply-Chain Management Marianne Kolbasuk McGee As businesses wrap up their year 2000 and enterprise resource planning projects, many will renew their interest in supply-chain management, according to a recent report by AMR Research Inc. Investments in supply-chain management projects decelerated slightly in 1998, compared with the growth of such projects in 1997. But activity in supply-chain projects, including planning and execution, is expected to pick up in the latter half of this year as the market for supply-chain management software nears $4 billion, AMR says. "IT organizations have put a lot of their attention over the last year on finishing ERP and year 2000 projects," says John Bermudez, AMR's group VP of enterprise strategies. CIOs won't want to break up the teams working on these projects once they're completed; instead, many will head right into supply-chain projects that may have been less of a focus before, Bermudez says. Among the reasons businesses will expand their supply-chain initiatives, he adds, is pressure from customers and suppliers for collaboration that helps cut costs and improve inventory management. For instance, many large manufacturers produce a wide scope of products at different plants under different subsidiary or brand names. Customers tend to look at those brands and products individually based on category, instead of on what company manufactured the goods. AMR's Bermudez says, "Supply-chain management can help bring all of this under one roof, so that a retailer looks at a company like 3M as being a supplier of a family of products, not just a supplier of Scotch tape or sandpaper." Copyright ® 1999 CMP Media Inc. W