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Editorial from the April 2007 issue of Managing Automation

Industry Update: SCM

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Abstract:An industry update on the supply chain management (SCM) software space with links to Managing Automation's online product directory.
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As in many industries these days, controlling costs is foremost on the minds of manufacturers in the market for supply chain management (SCM) technology. As the global supply chain continues to expand, companies are looking to employ software that can help manage their transportation networks as a single entity — for cost as well as control and visibility reasons, says AMR Research vice president John Fontanella.

According to AMR's recent study, "The Supply Chain Management Spending Report, 2006-2007," U.S. manufacturers juggle more than 30 contract manufacturing relationships on average, and to help manage this complex web of relationships, 27% of firms with $1 billion or more in revenue review their supply network on at least a semiannual basis.

Following a boom in the late 1990s, the SCM market experienced a downturn; today, the approach to SCM is "pragmatic," according to AMR, "with most companies building an SCM infrastructure based on a foundation of ERP investments," according to the recent report, "The Supply Chain Management Applications Report, 2005-2010."

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