Growing demand variability and product complexity are forcing many manufacturers to rethink their supply chain strategies. Although inventory optimization software has been around for many years, the business landscape is hardly the same as when the technology debuted.
Among the reasons for considering a change in incumbent supply chain software, the most obvious is a need to buffer against external factors, such as rising fuel costs and commodities prices. Also, ever-changing customer demand, sustainability commitments, and other internal pressures are driving manufacturers to more sophisticated global planning. And with a widespread trend toward demand- versus product-driven supply chains, manufacturers are re-evaluating their networks more frequently, requiring increased agility.
"In the last year or so, companies have come to the realization that they need to inject the concept of risk or variability when they're making supply chain topology decisions," says Nadeem Syed, group vice president for advanced planning products at Oracle.
To address these changes, manufacturers are increasingly seeking end-to-end supply chain applications that are standardized across the entire enterprise and encompass demand, supply, transportation, and even manufacturing.