Technology Across the Supply Chain

Published by: Analytiqa

Published: Oct. 31, 2005 - 105 Pages

Table of Contents

Chapter 1 Executive Summary

1.1 Introduction

1.2 Market Presence

1.3 Implementation Strategies

1.4 Satisfaction Dynamics

1.5 Third Party Logistics Providers

1.6 Future Developments

Chapter 2 Introduction

2.1 Report Aim

2.2 Report Structure

2.3 Report Context

Chapter 3 Market Presence

3.1 Introduction

3.2 Process Management Systems Providers, Europe-wide Presence

Fig 3.1: For Process Management Systems SAP is most widely used throughout Europe

3.2.1 Process Management Systems Providers by Sector

"I think it is best if only the back-end reporting systems are standardised…"

Fig 3.2: Comparison of Process Systems Providers Used by Retailers & Manufacturers in Europe

3.2.2 Process Management Systems Providers by Geography

Table 3.1: Process Management Systems Providers Presence

Fig 3.3: Process Management Systems Providers, Western Europe

Fig 3.4: Process Management Systems Providers, Eastern Europe

3.3 Inventory Management Systems Providers, Europe-wide Presence

Fig 3.5: Inventory Management Systems, Europe-wide Presence

3.3.1 Inventory Management Systems Providers by Sector

"We know that the systems are only as good as the information we input…"

Fig 3.6: Europe-wide Inventory Management Systems Providers, Retail

Fig 3.7: Inventory Management Systems providers are less fragmented

3.3.2 Inventory Management Systems Providers by Geography

"The biggest challenge facing this company is developing lean processes"

Fig 3.8: Inventory Management Systems Providers, Western Europe

3.4 Warehouse Management Systems Providers, Europe-wide Presence

Fig 3.9: Warehouse Management Systems Providers, Europe-wide Presence

3.4.1 Warehouse Management Systems Providers by Sector

"…it will take a lot of additional work to add in the extra functionality we need"

"We would have liked to have an RFID compatible WMS but the cost was a cost too far"

Fig 3.10: 3PLs Responsible for 29.4% of Retailers' WMS

Fig 3.11: Selection of WMS amongst European Manufacturers is Fragmented

3.4.2 Warehouse Management Systems Providers by Geography

Local problems, global solutions

"Germany delivers to corner shops, France only to wholesalers; how can we use one system?"

Fig 3.12: Warehouse Management Systems Providers, France

3.5 Transport Management Systems Providers, Europe-wide Presence

Fig 3.13: Transport Management Systems Providers, Europe-wide Presence

3.5.1 Transport Management Systems Providers by Sector

Morrisons' plans to revert to manual routing and scheduling highlights difficulties

"The move from very good IT systems to a manual process was likely to cause disruption"

Providing transport to Europe's retailers

Fig 3.14: Transport Management Systems Providers, Europe-wide, Retail

Fig 3.15: Transport Management Systems Providers, Europe-wide, Healthcare

3.5.2 Transport Management Systems Providers by Geography

"It's cheaper to ship an empty container from Europe to Asia than North America to Europe"

"More efficiently managing cost products at boundaries will bring big cost benefits"

Can technology help alleviate transport infrastructure technology?

Fig 3.16: Transport Management Systems Providers in Eastern Europe

Fig 3.17: Transport Management Systems Providers in Western Europe

3.6 Track & Trace and Mobile Technology Solutions

RFID: a good idea in theory

"RFID? - we're going to give bar-codes a go first"

RFID not a priority for healthcare manufacturers

3.7 Technology Implementers, Europe-wide Presence

Figure 3.18: Technology Implementers' Europe-wide Market Presence

3.8 Market Presence Summary

Chapter 4 Implementation Strategies

4.1 Introduction

4.2 EU directives enforce changes on supply chain systems

Legislation changes increase the need for visibility and control throughout the supply chain

4.3 Beyond the EU, Drivers of Systems Improvement

Fig 4.1: Reasons for Process Management Systems Improvements in Western Europe

Cost efficiencies - driving systems improvements

"These days it is unusual for a company to have two distribution centres in the same country"

Hi-tech process systems underpinning the "lean" philosophy

4.4 Process Systems Implementations

Fig 4.2: Technology Investment Choices Vary by Region across Europe

Different types of systems implementations reflect levels of market maturity

Fig 4.3: Share of Eastern European Process Management Installations Within Two Years

Fig 4.4: Investment Drivers in Eastern Europe

Eastern Europe Systems Improvement Focus

"We are really just waiting for SAP, but we have a local Hungarian system for the time being"

"In Eastern Europe it isn't a question of replacement systems - we did not have systems before"

4.5 Inventory Management Systems Improvements

Fig 4.5: Inventory Management System Europe-wide Improvements

4.6 Warehouse Management Systems

Fig 4.6: WMS Implementation Drivers Over the Last Two Years

Fig 4.7: WMS Improvement Types, Europe-wide

4.7 Transport Management Systems

Fig 4.8: 20.0% of TMS Not Improved Within the Last Four Years

4.8 Technology Implementers

Fig 4.9: Method of Selecting Technology Implementers

Fig 4.10: Method of Selecting Warehouse Management Systems Implementers

Fig 4.11: Method of Selecting Transport Management Systems Implementers

4.9 Implementation Strategies Summary

Chapter 5 Satisfaction Dynamics

5.1 Introduction

5.2 Technology Market Overview

Mobile technology's ad hoc connections creates un-scaleable and inefficient solutions

"Where do you stop with technology?... at what point do you say enough is enough?"

Fig 5.1: Satisfaction Levels by Improvement Type, Europe-wide

Fig 5.2: Satisfaction Levels by Improvement Driver, Europe-wide

5.3 Customer Satisfaction with Warehouse Management Systems

Fig 5.3: WMS Satisfaction Lower in Eastern Europe Higher Than In Western Europe

"Maximising the benefits of the new system will be at least a year long process"

"I realise I just didn't know enough about the system to give the right advice - but how could I?"

Understanding system requirements at the implementation stage

"Stakeholders' full collaboration is key to creating an effective system"

"…it can be very frustrating, waiting for a solution you know you need…"

5.4 Customer Satisfaction with Transport Management Systems

Fig 5.4: Transport Management Systems Satisfaction Levels across Europe

The routing and scheduling capabilities of transport management systems

5.5 Customer Satisfaction with Technology Implementers

Fig 5.5: The Majority of Technology Systems Implementers Leave Customers Highly Satisfied

5.6 Satisfaction Dynamics Summary

Chapter 6 Third Party Logistics Providers

6.1 Introduction

Table 6.1: Leading European 3PLs' Logistics Revenues € mn, 2001 - 2004

Fig 6.1: Without 3PL Support the Technology Providers' Approach is Less Robust and Reaches a Smaller Audience

Fig 6.2: Technology Providers Can Work With 3PLs to Gain Access to their Clients and Improve their Service Offering

6.2 The Role of 3PLs in Supply Chain Technology

"Connectivity of our client solutions with internal systems is a key feature of our new IT strategy"

"While tailored functionality is essential for our clients it is also important that we ourselves operate efficiently by streamlining our internal processes"

Segmenting technology service by client size

3PLs bridge the technology gap

"We need to consider whether making our current in-house systems expertise obsolete and investing further in acquiring the same expertise with a SAP WMS"

"…3PLs need to be initiating supply chain improvements… Track and Trace, RFID…"

6.3 Third Party Logistics Providers Summary

Chapter 7 Future Developments

7.1 Introduction

The most important future technology investments

Fig 7.1: Most Important Planned Future Technology Investment

7.2 Technology Investment Plans over the Next Two Years

Fig 7.2: Planned Technology Implementations by System Type, 2006 - 2008

Fig 7.3: Time-frames for Planned Systems Implementations, by System Type

Fig 7.4: Eastern Europe - Future Investment Time-scales in Supply Chain Technology

Fig 7.5: Western Europe - Future Investment Time-scales in Supply Chain Technology

7.3 Drivers of Technology Improvements

Fig 7.6: Drivers of Future Systems Improvements, Europe-wide

Fig 7.7: Europe-wide Warehouse Management Systems, Most Recent Improvement Types

Fig 7.8: Europe-wide Warehouse Management Systems, Future Improvement Types

7.4 Key Logistics Challenges Place Technology Requirements in Context

Fig 7.9: Streamlining Costs and Inventory Reduction are Key Logistics Challenges

7.5 Future Developments Summary

Chapter 8 Conclusion

8.1 Introduction

8.2 Technology Providers, Strengths and Weaknesses of Current Market Positions

8.3 Technology Systems Improvements and Drivers of Investment

8.4 Current Satisfaction Levels as Indicators of Future Behaviour

8.5 The Opportunities, Capabilities and Requirements of 3PLs

8.6 Future Developments - Investment Type and Timescales

Fig 8.1: Most Important Planned Future Technology Investments

Abstract

• What factors are driving technology provider selection and systems implementation throughout the supply chain disciplines?
• How successful ERP systems are in establishing themselves as solutions providers in sections of the supply chain?
• How technology is used to reduce inventories and what level of input 3PLs have on system choice?
• How the requirements of logistics technology solutions differ between Eastern and Western Europe?
• Customer satisfaction with process, inventory, warehouse and transport systems - integration and the technology implementers
• Future technology investment plans of manufacturers, retailers and 3PLs… and the drivers of these decisions

• Technology providers needing a better understanding of customer behaviour and strategies
• Supply chain executives requiring a broader view of the approach adopted by peers in meeting their supply chain technology requirements.
• 3PLs, to place their customers' technology demands within the context of the market and their competitors' offering.

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