More organizations will be looking for tools to help with the demand and planning aspects of warehouse inventory management, according to a recent report from IDC MarketScape. The study, titled "Worldwide Manufacturing Supply Chain Demand Sensing and Planning 2013 Vendor Assessment," expects these applications will climb to 8.7 percent of the overall supply chain management spending market by 2015.
"Volatility has emerged as a top concern for manufacturing companies since the global recession of 2008-2010," the report said. "For some manufacturing sub-verticals, like 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 of this has been a renewed focus on planning, forecasting and performance. A strong future for supply chain demand and sensing is something IDC sees coming in the next few years as companies look to stave off the high levels of demand volatility by determining what they need via software. Simon Ellis, practice director at IDC Manufacturing Insights, said maintaining consistency while keeping cost levels solid will strengthen their market position and make them more visible for years to come.
Spending on these apps is currently at 8.5 percent of the software, so it is something currently realized to be an issue by supply chain management as well.
Aside from being able to better plan for and recognize demand issues before they arise, having a warehouse inventory system and other supply chain software can help reduce costs, increase efficiency and fortify the output level of an organization, according to Demand Media. Correct utilization of technology will help a manufacturing organization attract more customers, become more timely, increase responsiveness and spur growth as a result of increased sales and output.