Fewer Than Half of Supply Chain Solution Customers Satisfied with their ROI, Nucleus Research Finds

April 27, 2015

Shocking number of companies not even bothering to measure supply chain results a new study finds

BOSTON – April 27, 2015 Nucleus Research recently surveyed more than 200 supply chain software customers, finding existing solutions are not stacking up to customer investment expectations. A majority of 52 percent said that the supply chain software deployment did not meet ROI expectations. In fact, 34 percent did not know whether the deployment even got a payback.

“I’m not sure which finding has been more shocking, the fact that so many customers aren’t happy with their supply chain software, or that many of them aren’t even measuring the value they’re getting from what they have,” said James Cooke, principal analyst at Nucleus Research. “It’s like driving at night without your headlights on. There’s a real opportunity here for supply chain vendors to show value as the industry approaches an inflection point.”

The high number of companies setting their supply chain software on autopilot presents significant opportunity for vendors. The cloud is starting to add significant value to the supply chain, bringing the age of overselling limited capabilities to a close. Helping customers to leverage the best solutions – particularly via the cloud – and optimize ROI will be an advantage in an industry where gaining even small margins can be vital to success.

Cloud solutions not only provide a better overall ROI, but customers also can leverage the versatility of these types of deployments to maximize their supply chain software investments. In comparison, on-premise solutions tend to further reduce ROI potential because of persistent hardware and IT expenses.

Customers will need to do more homework when shopping for new supply chain solutions until vendors step up and take advantage of providing clearer benefits to new deployments.

The full note is available at www.NucleusResearch.com

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