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Demand sensing, planning apps to grow 8.7% by 2015

Posted: 11 Sep 2013 ?? ?Print Version ?Bookmark and Share

Keywords:demand sensing? planning software? manufacturing?

IDC Manufacturing Insights has released its latest IDC MarketScape report that offers a comprehensive assessment of the supply chain demand sensing and planning software application vendors for manufacturing companies. The vendors evaluated in this report include Infor, JDA Software, Kinaxis, Logility, Oracle, SAS, SAP and Steelwedge.

Volatility has emerged as a top concern for manufacturing companies since the global recession of 2008-2010. For some manufacturing sub-verticals such as engineering-oriented value chains, volatility manifests itself in the form of supply complexity; for other sub-verticals like brand-oriented value chains, volatility manifests itself in the form of demand complexity; for still others like technology-oriented value chains, it's both. The result has been a renewed focus on demand planning and a desire to improve their forecasting capabilities and performance.

"Indications are good for a continued strong future for supply chain demand sensing and planning applications in manufacturingparticularly in those sub-segments such as consumer products and high tech where companies experience high levels of demand volatility. IDC Manufacturing Insights believes that manufacturers who better leverage demand sensing and planning technology to deliver consistently against their service obligations, whilst maintaining required cost levels, will strengthen their current market positions and will be more viable in the long term," said Simon Ellis, practice director, IDC Manufacturing Insights.

IDC MarketScape suggests the future for manufacturing supply chain demand sensing and forecasting is bright. Not only are manufacturing companies across most industry segments prioritizing these capabilities, but that priority is reflected in IT spending growth. According to the report, expected market growth for demand planning applications outstrips overall manufacturing supply chain management spending growth by over one percentage point. Demand sensing and planning applications are at 8.5 per cent of overall supply chain management spending, and are expected to climb to 8.7 per cent by 2015.

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