Something struck me after spending a few days in Phoenix at Gartner’s Supply Chain Executive Conference.
Supply Chain Network Optimization is key to running an efficient and profitable operation today.
But while the market has changed, network optimization hasn’t actually advanced much since the 1990s. Yes, there are lots more features and a big increase in computing power. Yet, network optimization is still just a richer version of the 90’s experience.
Analyzing the Software Market
Network optimization software has become a big business that’s experienced exponential growth. There has been a strong adoption of boxed solutions that are feature rich with many bells and whistles.
What I heard at the Gartner conference is growing frustration with these large packages that have become cumbersome to use, too difficult for the average supply chain expert, lack flexibility and have high price tags. Sound familiar?
So what is the alternative? First, we need to go back to the original purpose. Supply Chain teams shouldn’t be overly focused on technology. Instead, they should have their eyes set on the desired outcome.
Supply Chain teams want a supply chain network that runs in an optimized fashion, with signals that indicate when and where to invest in future infrastructure. The network optimization tool should just be a means to an end.
So why hasn’t it become easier and cheaper to have an optimized network? Why are companies investing more and more in this focused discipline?
Read more at Supply Chain Network Optimization Technology is Ripe for Disruption
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