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From the Wires
Enterprises Increasing Technology Spending to Drive Supply Chain Innovation, Says New Aberdeen Report
While cost control is still a strong desire, 72% of companies have other motivations for supply chain innovation that rank highe

By: PR Newswire
May. 23, 2006 10:00 AM

BOSTON, May 23 /PRNewswire-FirstCall/ -- With globalization of supply and more customer-specific fulfillment mandates, the need for supply chain technology is accelerating. In analyzing the plans of 208 enterprises, Aberdeen finds that supply chain executives are seeking new capabilities and technology features for their next-generation supply chain solutions.

According to a just-released study by AberdeenGroup, companies are not only strategizing on what their technology footprints should look like but are also making investments.

Fully 48% of all companies and 53% of mid-size firms will spend more in 2006 on new supply chain technology than they did in 2005, while only 8% will spend less. Additionally, two-thirds of large enterprises plan to spend over $300,000, and 35% plan to spend over $1 million.

However, where companies will be investing differs by their supply chain ambitions. "The Supply Chain Innovator's Technology Footprint Report" spells out the differing technology priorities for:

Strivers: Companies striving to reach industry average with their supply chain technology roadmap. Best Practice Seekers: Companies seeking to adopt industry best practices and supporting technology. Innovators: Companies looking to create brand new supply chain innovations.

"Supply chain organizations are under intense pressure to meet demands for greater customer intimacy, lower cost of goods sold, and increased global business processes," says Beth Enslow, senior vice president of research for Aberdeen. "To succeed, these organizations are identifying that they need to change their supply chain technology footprints."

While 28% of respondents say lowering supply chain costs is their top motivator for supply chain innovation, 72% point to other motivations, such as the desire to meet customer mandates more efficiently, minimizing demand/supply imbalances, and creating profitable sales growth.

Download a complimentary report copy at: http://www.aberdeen.com/link/source.asp?cid=3028&pid=PR052306 About AberdeenGroup, Inc.

Aberdeen provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives -- and the solution providers who serve

them. For more information, visit http://www.aberdeen.com/ or call 617-723-7890.

AberdeenGroup, Inc.

CONTACT: Beth Enslow of AberdeenGroup, +1-519-883-1430,
beth.enslow@aberdeen.com

Web site: http://www.aberdeen.com/

Published May. 23, 2006
Copyright © 2006 SYS-CON Media, Inc. — All Rights Reserved.
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Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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