Abstract
Overview
Introduction
While investment in supply side technology has been a focus for manufacturers
in recent years, an increasing number are trying to improve the efficiency of
demand processes. This includes developing demand-driven supply chains and
enhancing collaboration. This strategic focus sets out the market drivers and
resulting technology investment priorities for global manufacturers.
Scope
- This strategic focus looks at the global manufacturing industry with a
discussion of trends within three key regions.
- A range of different manufacturing industries are evaluated including
consumer packaged goods, automotive, and high-tech & electronic.
Report Highlights
To alleviate the pressures of potentially declining revenues and increasing
costs, manufacturers are moving to protect margins for key product families
across their operations. Ensuring that supply chain-oriented processes are as
lean as possible is a general theme for the industry, and particularly
relevant to the topic of demand management.
Reasons to Purchase
- Gain an insight into the drivers of demand management technology
investment.
- Understand which regional and industry markets will provide the most
opportunity for technology vendors.
- Assess the key demand management issues to focus on when engaging in sales
activities.
Table of Contents
- Overview
- Key Messages
- Economic uncertainty and planning process refinement are driving demand
management
- A number of demand management drivers are being seen in the market
- The state of the market is mixed, with a low penetration of demand
management technology
- Investment in demand management technology will grow at a fast pace
- Data siloing is still a dominant trend within systems used for demand
management
- Demand shaping is moving up the list of manufacturers' priorities
- A lack of demand visibility is a challenge, but is increasingly easy to
solve with technology
- Vendors must target appropriate pain points within manufacturing
companies
- Table of Contents
- Table of figures
- Table of tables
- Market Opportunity
- Economic uncertainty and planning process refinement are driving demand
management
- The uncertain economic environment is forcing manufacturers to
consider demand management
- There is an increasing focus on linking operations with demand
planning processes
- Demand management means different things to different people
- Demand management is not just forecasting
- Demand management supports the organization of multiple plans to align
supply with demand
- A number of demand management drivers are being seen in the market
- Deliver/return process priorities show demand management-related
processes are ranked highly
- Changes in production outsourcing and relocation are also affecting
demand management
- A reduction in inventory holding and production cycle sizes leads an
array of demand management drivers
- New product introduction cycles are shortening, causing complications
in demand
- The state of the market is mixed, with a low penetration of demand
management technology
- Not all manufacturing companies have developed formal demand
management strategies
- Investment in demand management technology will grow at a fast pace
- North America will provide the most opportunity for vendors
- The discrete industry will invest the most in demand management
technology
- The CPG industry is leading the discrete manufacturing industry
- Both the pharmaceutical and food & beverage industries will invest
in demand management technology
- Technology Evolution
- Manufacturers will increasingly look to technology to support demand
management
- Data siloing is still a dominant trend within systems used for demand
management
- Manufacturers are trying to source customer data as close to the
customer as possible
- There is a marked shift from historically derived forecasts to
predictive models
- Integration with order management systems is becoming an imperative
- Demand shaping is moving up the list of manufacturers' priorities
- Customer Impact: driving demand management processes
- A lack of demand visibility is a challenge, but is increasingly easy to
solve with technology
- Better collaboration with customers is a rising priority for
manufacturers
- Supply chain channels severely complicate demand management processes
- Demand management solutions can improve visibility
- A difference between forecast and actual demand is costing manufacturers
dearly
- Inventory management is at the heart of the issue
- Most manufacturers do not forecast at an appropriate level of
granularity
- Competitive Landscape
- A small number of vendors dominate mindshare for demand management
technology
- SAP accounts for more than half of the mindshare for future investment
- HP and IBM sit at the top of the heap for the services market
- SAS
- Epicor
- JustEnough
- HP
- Genpact
- Go to Market
- CEOs are the technology investment decision makers, but LOB should still
be a priority
- Vendors must target appropriate pain points within manufacturing
companies
- There is significant variation between those manufacturers with
differing degrees of globalization
- The maturity of a formal demand management strategy will also affect
which issues are important
- APPENDIX
- Definitions
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Global investment in demand management technology 2007-13 ($m)
- Table 2: Regional investment in demand management technology 2007-13 ($m)
- Table 3: Global industry investment in demand management technology
2007-13 ($m)
- Table 4: Global discrete investment in demand management technology
2007-13 ($m)
- Table 5: Global batch investment in demand management technology 2007-13
($m)
- Figure 1: General priorities for deliver and return processes
- Figure 2: Degree of production outsourcing or relocation among survey
respondents
- Figure 3: Degree of production outsourcing or relocation among survey
respondents (by region)
- Figure 4: Degree of production outsourcing or relocation among survey
respondents (by industry)
- Figure 5: Identification of demand management-related issues affecting
surveyed manufacturers
- Figure 6: Identification of demand management-related issues affecting
surveyed manufacturers (region)
- Figure 7: Identification of demand management-related issues affecting
surveyed manufacturers (industry)
- Figure 8: Relative maturity of formal demand management strategy among
surveyed manufacturers
- Figure 9: Relative maturity of formal demand management strategy among
surveyed manufacturers (region)
- Figure 10: Relative maturity of demand management strategy among surveyed
manufacturers (industry)
- Figure 11: Global investment in demand management technology 2007-13 ($m)
- Figure 12: Regional investment in demand management technology 2007-13 ($m)
- Figure 13: Global industry investment in demand management technology
2007-13 ($m)
- Figure 14: Global discrete investment in demand management technology
2007-13 ($m)
- Figure 15: Global batch investment in demand management technology 2007-13
($m)
- Figure 16: Degree to which surveyed manufacturers will look to technology
for demand management
- Figure 17: Degree to which surveyed manufacturers will look to technology
for demand management (region)
- Figure 18: Degree to which manufacturers will look to technology for
demand management (industry)
- Figure 19: Degree to which manufacturers will look to technology for
demand management (strategy maturity)
- Figure 20: Vendor mindshare for future investment in demand management
software
- Figure 21: Vendor mindshare for future investment in demand management
software (strategy maturity)
- Figure 22: Vendor mindshare for future investment in demand management
services
- Figure 23: Vendor mindshare for future investment in demand management
services (strategy maturity)
- Figure 24: Investment decision makers for demand management technology
- Figure 25: Investment decision makers for demand management technology
(region)
- Figure 26: Investment decision makers for demand management technology
(industry)
- Figure 27: Issue prioritization for manufacturers based on outsourcing or
relocation activity
- Figure 28: Issue prioritization for manufacturers based on formal strategy
maturity
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