An analysis of core functions offered by software packages aimed at the supply chain management software market

Abstract

The Purpose of this paper is to investigate the use of software packages (SP) aimed at the supply chain management (SCM) market. The aim is to analyse and classify the range of software functionalities offered by a variety of SCM-SPs currently in the market. This is important to gain an insight into the current and future trend in demands for applications of information & communication technology (ICT) for SCM. The study assumes that most ICT hardware used for SCM processes will require software interaction. Thus study of the variety of functionalities offered by SCM-SPs will provide insights into the use of ICT for SCM. In this paper, literature on SCM and applications of ICT for SCM is used to develop a SCM software function classification map (SCM-SFC map) for SPs aimed at the SCM market. The SCM-SFC map breaks down the SCM process into four key functional areas: sales management, relationship management, planning & production management and flow management. Each key functional area is further broken down into an overall of sixteen areas of core software functions. We then analysed 242 SCM-SPs currently in the market. We identified a total of 1295 software functionalities present in the 242 SCM-SPs. Each of these functionalities was then classified within the taxonomy of the SCM-SFC map. The results were used to identify areas of high and low intensity of core software functions and key SCM functionalities present in SCM-SPs analysed. The main finding indicated that flow management to coordinate supply chain operations consisted nearly half of functionalities offered by SCM-SPs. ICT is particularly useful in the SCM sector for prevention of bullwhip and cash flow bullwhip effects. The study also indicates a potential growing trend towards using ICT for forecasting at the upstream end of the supply chain. At the downstream end of the supply chain, the study suggests that ICT could increasingly be used for online retailing through software functionalities that e