2014 Readers Choice Survey: Supply Chain Execution

Download the full 2014 Supply Chain Execution Report

A whole new world of possibilities is evolving for supply chain execution (SCE) with the prevalance of big data and mobility. Lora Cecere, a.k.a The Supply Chain Shaman, explains why SCE improvements should be at the very top of the consumer goods executive’s to-do list, and how technology can help drive competitive advantage.

Can you comment on the top 10 list?
Cecere: This industry is becoming mature and consolidated. Line-of-business leaders are happiest with warehouse management and transportation planning software, and there is little drive to change solutions. However, as the software evolves, more and more companies are looking for a common platform to drive supply chain analytics. They are also seeking global platforms. Most new deals are driven by global expansion or M&A activity. When this happens, supply chain visibility requirements are trumping functionality, leading more and more companies to select based on IT standardization and global presence. This tips the scales to ERP providers (SAP, Oracle and Infor).

Leading the pack is SAP, whose evolution of supply chain execution systems also makes this an easier path to follow. Both warehouse management and transportation management from SAP now have established and positive references.

Meanwhile, Oracle’s strong transportation solution is driving unique differentiation for some of the industry’s toughest consumer goods companies. The Oracle transportation solution is one of the deepest in the industry and the work on global trade makes it a strong offering for consumer products.

To compete, the supply chain execution pure plays are working to differentiate through depth of solution. This includes the food safety offering from RedPrairie [now part of JDA Software Group] and the soft goods capabilities of Manhattan.
 
Where should SCE fall on a consumer goods company’s priority list in 2014 and beyond?
Cecere: Supply chain execution and the evolution of distribution should be a red-hot topic for three reasons:

• Growth has slowed. Consumer goods companies now have the opportunity to use e-commerce channels in new ways to drive growth. However, the warehouse for the e-commerce order is very different than mainstream operations. To be successful in e-commerce — whether it is direct shipments to customers or through an e-commerce pure play like Amazon — the warehouse needs to be redesigned to ship “an each”. This requires revising picking and ensuring that products can be customized at time of shipment.
• Cost. Through the combination of robotics, voice and new forms of analytics, it is estimated that companies can reduce the cost of distribution by 40 percent. This requires a rethinking of warehouse operations based on what the new technologies can deliver.
• New opportunities. As food companies evolve into products that are fresh and easy, and pharmaceutical companies expand product lines requiring temperature controlled storage, the role of warehouse operations has to be rethought.