Will the Tigers Truly Latch On To Analysis and Optimization?

This is the Year of the Tiger (in more ways than one) and, according to a recent article in the SCMR on Supply Chain 2010 which quoted a recent AMR Research Survey on 184 companies that found that performance management was considered the most strategic supply chain technology investment, software applications in 2010 will focus on analysis and optimization.

I hope so, because it would be great if companies

  • actually knew how much they were spending,
  • who was getting the money,
  • what they were getting for it,
  • how much they should have paid vs,
  • how much they were invoiced, and
  • how much could have been saved with better information and more leverage.

And it would be wonderful if companies could clearly see that

  • lowest bid is not lowest TCO,
  • lowest landed cost is not lowest TCO,
  • lowest acquisition cost is not lowest TCO, and
  • even the lowest Total Cost of Ownership is not necessarily the best value because
  • Total Value Management means that you need the ability to simultaneously analyze cost, risk, and non-price factors to make the best buy decision.

So will it happen? Or will those few of you smart enough to understand the incredible value these technologies have to offer continue to outpace your competition by leaps and bounds for another year?

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