SOURCE: Aberdeen Group, a Harte-Hanks Company

May 03, 2007 11:39 ET

Enterprises Continue to Increase Technology Spending to Drive Supply Chain Innovation, Says Aberdeen Report

Five Times as Many Study Participants Plan to Spend More on New Supply Chain Technology in 2007 Than Plan to Spend Less

BOSTON, MA -- (MARKET WIRE) -- May 3, 2007 -- With increasing globalization of supply and more customer-specific fulfillment mandates, the need for supply chain technology is accelerating year over year. In analyzing the plans of 210 enterprises in early 2007, Aberdeen finds that supply chain executives are actively seeking technology areas for getting immediate ROI. This is according to a new report titled "The Supply Chain Innovator's Technology Footprint 2007" by Aberdeen, a Harte-Hanks Company (NYSE: HHS). Some of the key findings from this report are:

--  Innovators are 1.5X times more likely than all others to indicate that
    globalization is their top driver for supply chain improvements
--  Inventory Management is the top priority for companies in 2007 where in
    2006 inventory management was tied with S&OP/demand management for the top
--  Supply Chain Visibility is the #2 priority for companies in 2007 (very
    closely behind inventory management)
--  SOA and RFID in warehouse are not high priorities for 2007
--  Supply Chain Visibility and Transportation Management are the top areas
    of intention to adopt on-demand applications
--  Top areas where companies are embarking on short-term ROI projects in
    2007 are inventory optimization (42%), transportation management/fleet
    management (39%), supply chain visibility (38%)
    
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.
    
"The supply chain technology priorities are different for innovators as compared to all others," says Nari Viswanathan, research director of the supply chain and logistics practice for Aberdeen. "It is important for companies to be aware of the specific actions that innovating companies are taking with respect to their supply chain technology roadmap and benchmark their capabilities against the best-in-class."

When compared with their peers, innovators are more likely to be prioritizing: Pricing Optimization, Forecasting systems, Strategic network design, Preferential trade agreement optimization, Master scheduling, and Multi-tier replenishment planning.

This study is made available to the public through the underwriting of: Infor, Hitachi, SoloGlobe and E2Open.

Download a complimentary report copy at: http://www.aberdeen.com/link/sponsor.asp?cid=3981

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

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