White paper itelligence

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Le CXP copyright, 2014 1
SCM SOFTWARE: CAN THEY
MATCH THE PRESENT DAY
CHALLENGES?
Written by Dominique Dupuis
Research Director, le CXP
In partnership with

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SCM software: is it capable of meeting today's challenges?
CONTENTS
1 - INTRODUCTION
2 - OVERVIEW 3
3 - METHODOLOGY & PARTICIPANTS 4
4 - THE PARTICIPANTS' LOGISTICAL ACTIVITIES 5
Partial outsourcing of logistical activities 5
Largely international logistical activities 6
Significant e-commerce activities 6
Increasingly cross-channel logistics 7
5 - DETAILED ANALYSIS 8
Challenges 8
The impact of changing consumption methods 11
Challenges relating to regulations 12
The Supply Chain Information System 13
Is the Information System equal to current requirements? 16
Collaboration 19
Investment projects 21
6 - CONCLUSION 25
1 - INTRODUCTION
In an ever-changing world, supply chains are constantly required to adapt and face new challenges. A
large number of factors are taken into consideration, both for logistical organisation decisions and
relating operational management: changes in supply sources, market volatility, changes in
consumption habits and consumer requirements, regulatory changes, etc.
Based on proven solutions available on the market, companies have built up an information system
now considered mature. Do current solutions meet the increasing need for change and do they allow
for sufficient flexibility? In a nutshell, are they capable of meeting the challenges faced by companies
nowadays?
This document presents the results of the study "Supply Chain Management software: is it capable of
meeting today's challenges?", conducted in 2014 by le CXP and Supply Chain Magazine.

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planning
digitalisation
SaaS
regulations
collaboration
BI solution
WMS
2 - OVERVIEW
1 IT CONTRIBUTION TO SC
OBJECTIVES
For 83% of participants, it is important and
even essential
48% have increased their budget for the
deployment of new software
91% consider relevant for
collaborative solutions, 76% for TMS
2 BEING MORE
FLEXIBLE
IMPROVING
COLLABORATION
83% are satisfied with their flow management and
monitoring solution
33% are fitted with a flow management solution
Twice as many participants fitted with collaborative
solutions are satisfied with the
3 REDUCING
COSTS
It is a strategic choice for 53%of the participants
64%are fitted with a to measure them
4 OPTIMISING
WAREHOUSES
It is an important and even strategic choice for 86%of the
participants
70%are fitted with a
67%are satisfied with the services provided by their WMS
5 TRACKING
PRODUCTS
For 56% of the participants, at least one of the
following is important or strategic:
- the information provided to the end customer,
- the environmental labelling of consumer products,
- the REACH regulation.
6 SPECIFIC
CHALLENGES
Industrial businesses: optimising thanks to enhanced
Distributors: facing the society's need for

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31
22
21
36
Fewer than 250
From 250 to 999
From 1,000 to
5,000
More than 5,000
employees
Distribution according to company size
(n=110)
12
11
9
8
7
7
6
6
5
4
4
3
3
3
2
1
1
Multi-activity log. service…
Agri-foods
Retail
Other industrial business…
Wholesale
Mass distribution
Chemistry/Pharmaceuticals
Metalworking industry
Mechanical industry
Automotive industry
Other industries
Transport service provider
Services
Energy/Construction work
Warehouse service…
Textiles
High Tech
Business lines
3 - METHODOLOGY & PARTICIPANTS
The study "Supply Chain Management software: is it capable of meeting today's challenges?" was
conducted between April and May 2014 with the help of user companies, based on an online
questionnaire. The broached topics were the following:
Their activity's logistical characteristics: import/export flow management, e-commerce
logistics, outsourcing supply chain operations,
Challenges relating to Supply Chain Management,
Collaboration: types of collaboration implemented, satisfaction level, difficulties faced,
The Supply Chain Information System: components, satisfaction with the provided services,
Saas adoption and projects,
Changes regarding the budget and its components.
The questionnaire collected 110 validated responses after data cleansing.
Participating companies were of various sizes.
For certain questions, their choices made it
clear that answers varied greatly according to
company size.
Numerous business lines are represented,
thus showing a wide variety of contexts.

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47
23
10
4
4
4
Logistics or SC Director
IT Director
General Manager
Purchasing Director
Industrial Director
Other
Departments
Internal
60%
Subcontrac
ted
6%
Mixed
35%
Logistical management methods (n=109)
Lastly, a large proportion of participants work in
Logistics or Supply Chain Management.
Professionals such as those working in
Purchasing, Industrial Management and
General Management represent a vast
majority.
4 - THE PARTICIPANTS' LOGISTICAL ACTIVITIES
In addition to extremely varied business lines,
each participant stated their role in the supply
chain. Industrial shippers are the most
represented but distributors and 3PL providers
are also present. The responses, analysed for
each role individually, show that these
stakeholders' vision and situation can
sometimes vary greatly.
PARTIAL OUTSOURCING OF LOGISTICAL ACTIVITIES
This chart shows that only very few companies
(6%) completely subcontracted their logistical
operations, and a large majority (60%) do not
subcontract at all. This is especially true for 3PL
providers, 74% of which manage all their
operations internally. On the other hand,
industrial businesses tend towards total or
partial subcontracting (47%).
- Industry: 53%,
- Distribution: 62%,
- 3PL: 74%
- <250 employees: 80%
57
29
24
Industrial business/shipper
Trade / Distribution
Logictical service provider /
Carrier
Distribution according to the participant's
role (n=110)

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95% 90% 87%
96%
76%
88%
Industrial businesses
(n=56)
Distributors (n=29) Logisticians for their
customers (n=24)
International logistics: % of participants whose
activity revolves around Import or Export
Import Export
19%
60%
30%
2%
7%
13%
Industrial
businesses (n=57)
Distributors (n=30) Logisticians for their
customers (n=23)
E-commerce activities according to the
participants' role
Yes Pending
15%
49%
5%
2%
<1 000 (n=40) >1 000 (n=47)
E-commerce activity for industrial loaders or
distributors according to their size
Yes Pending
MOSTLY INTERNATIONAL LOGISTICAL ACTIVITIES
A very high proportion of participants
manage international logistical activities,
that relate either to import or export.
Even though they are less concerned than
industrial businesses, over three quarters
(76%) of distributors stated that they
managed export activities.
SIGNIFICANT E-COMMERCE ACTIVITIES
E-commerce is of course mostly covered by
distributors (60% of them have an e-
commerce activity) but 19% of industrial
participants are also concerned. As for 3PL
providers, 30% of them manage e-
commerce logistical flows for their
customers and 13% of them have launched
projects in this field, thus proving their
customers' desire to support them during
this change.
This e-commerce activity within our panel is
much more developed for bigger companies
that count more than 1,000 employees
(49% compared to 15%).

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Entirely
pooled
38%
Partially
pooled
44%
Separated
18%
Logistical pooling of multi-channel sales
activities (n=50)
INCREASINGLY CROSS-CHANNEL LOGISTICS
Companies that manage several sales
channels were asked how these activities'
various logistical operations were
managed. We can see here that a small
proportion of participants (18%) manage
these operations separately. Conversely,
38% of the participants resort to the
complete pooling of these operations,
more so for distributors (62%) and
companies that count fewer than 1,000
employees (55%), whereas fewer industrial
businesses and companies that count more
than 1,000 employees completely pool
these types of operations. Pooling thus
appears to be widely used, especially when
each channel's volumes do not reach the
required critical mass.
- Industry: 20%,
- Distribution: 62%,
- <1,000 employees: 55%
- >1 000 employees: 25%

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5 - DETAILED ANALYSIS
CHALLENGES
Four challenges have been identified as important from a strategic point of view by over 80% of
the participants, regardless of their role within the supply chain. Two of them are "standard" and
will no doubt carry on in the future: warehouse optimisation (strategic for 71% of 3PL providers)
and cost reduction (strategic for 69% of distributors). The importance granted to the other two is
more recent: Supply Chain flexibility (important for 89% of the participants) and reduced product
availability deadlines for end customers.
Depending on the participants' role, the challenges faced are also quite varied. Industrial
businesses have pointed out the issue of scheduling in order to optimise operations. Distributors
have identified the need to ensure economic performances, as well as face the increasing
digitalisation of society. Lastly, 3PL providers face the issue of operational performance and
customer requirements.
Based on a list of suggested challenges, each participant stated the level of importance granted by
their company, on a scale from 0 to 3:
0: not important
1: not very important
2: important
3: is a strategic focus point for our company.
In the table below, and for each role, the flag is used to identify the challenges that were
considered strategic by over 50% of the participants, whereas the  symbol identifies the
challenges that were declared important or strategic by over 80% of the participants (and strategic
by less than 50% of the participants).
We can see that the first four challenges that concern all three roles are the following:
In addition, each role has its own specific challenges:
- industrial businesses: optimising demand planning,
- distributors: reducing stock-outs and developing consumption methods,
- 3PL providers: optimising transport operations and developing regulations.

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More specifically, the figures that represent the first four challenges in this table are as follows:
Industrial
businesses
Distributors 3PL providers Overall
Imp. /Strat. Imp. /Strat. Imp. /Strat. Imp. /Strat.
Optimising warehouse management 54%/29% 43%/50% 21%/71% 43%/43%
Reducing Supply Chain costs 33%/50% 31%/69% 42%/42% 35%/53%
Supply Chain flexibility 56%/29% 68%/25% 36%/59%
55% + 34% =
89%
Reducing product availability deadlines
for end customers
36%/46% 38%/55% 42%/46% 37%/49%
These four challenges concern all three roles even though each role also has its own personal
challenges. These four challenges are "standard" and will no doubt carry on in the future: warehouse
optimisation and cost reduction, as well as more recent challenges (in terms of the important
granted to them by numerous stakeholders): flexibility and reduced deadlines.

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If we look at each role, the top 4 most strategic challenges include two of these four common
challenges.
For industrial businesses, optimising demand planning comes in first, ahead of
reduced stock-outs,
reduced Supply Chain costs,
reduced product availability deadlines for end customers.
Grouping the optimisation of demand planning with the three other items is quite interesting here:
demand planning is obviously not an objective as such and these results help us make the connection
and consider that the objective resulting from the optimisation of demand planning concerns stocks
and costs, which is in fact logical. Should this connection be extended to reducing deadlines?
For distributors, stock-out reduction comes in first, ahead of
reduced Supply Chain costs,
responding to the development of consumption/distribution methods,
reduced product availability deadlines for end customers.
For distributors, two sub-groups can be distinguished. The first concerns the Supply Chain's economic
performance and the second marks the impact of the enhanced need for digitalisation, which of
course affects distributors more than anyone. This digitalisation entails a change in consumption
methods - via websites and mobile applications - and leads to speedier operations, or more
specifically requirements for reduced time between the desire to purchase a product and its
availability. Amazon has even announced its project to send packages before the purchaser has even
confirmed the order. This announcement, even if it is only a publicity stunt, says a great deal about
the market's current challenges.
For logistical service providers, warehouse management optimisation comes in first
Supply Chain flexibility,
transport operation optimisation,
compliance with regulations.
Supply Chain management is at the heart of a logistical service provider's activities, thus giving it all
its importance. Operational performance comes in first, with its various components including
flexibility which is becoming a more and more recurring requirement on behalf of purchasers. The
4th challenge is compliance with regulations, which was a topical concern during the eco-tax project
for heavy goods vehicles in France.

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THE IMPACT OF CHANGING CONSUMPTION METHODS
The most important consequence - the development of customer relations - concerns at least 60%
of the participants in each of the Supply Chain's roles. Other consequences include the
development of e-commerce activities (58% of distributors) and cross-channel activities (52% of
distributors), and lastly the increased launch frequency of new products (60% of industrial
businesses and 52% of distributors). These elements naturally lead to deep-set organisational
changes in companies.
Digitalisation within our society especially concerns consumption methods, which are now multi-
channel and increasingly mobile. Facing these changes is a true challenge that was described as
strategic by 59% of the distributor participants. Our questionnaire made it possible to detail this
point by analysing the consequences for the Supply Chain.
The chart below shows that these consequences are mostly shared by all roles, even though the
intensity of the impact is not always identical. Therefore, the most important consequence that
transpires here - the development of customer relations - concerns all three roles but proportionally-
speaking industrial businesses were most concerned. Distributors are the most deeply affected but
may have already adapted their organisation so the challenge is less cumbersome. All these elements
are central to 3PL providers, which undoubtedly reflects their panel of customers made up of
distributors and industrial businesses. They were the ones who noticed a change in customer
relations most, either because their customers seemed to face a real challenge or because they are
now directly concerned?
80%
20%
60%
18%
29%
47%
4%
5%
61%
58%
52%
52%
35%
13%
10%
3%
83%
43%
52%
35%
30%
35%
4%
9%
Development of customer relations
to respond to customer requirements
Enhanced e-commerce
Increased launch frequency
for new products
Enhanced cross-channel commerce
Increasing the use of promotions
Increased product customisation
Enhanced mobile commerce
The development of consumption methods
has no effect on our Supply Chain
Main consequences of the development of consumption methods
Strategic challenge for 59% of distributors
(n=57 industrial businesses, 31 distributors and 23 logisticians)
Distributors
Logisticians

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The second element for distributors is the development of e-commerce activities, which naturally
does not concern industrial businesses as much, although 20% of them were in fact affected (see
above "Significant e-commerce activities"). Elements concerning the development of cross-channel
commerce are fairly similar.
The second element for industrial businesses is the increased launch frequency of new products,
which was also identified by +50% of distributors. It is associated with product customisation and is
an important consequence that, just like for the development of e-commerce activities, entails deep-
set organisational changes in companies. The digital transformation of companies, that affects the
products and services provided, as well as the rise of Internet orders will undoubtedly reinforce this
point in the years to come.
CHALLENGES RELATING TO REGULATIONS
No doubt influenced by the news at the time of the study, the eco-tax clearly appears to be the
regulation that poses the most important challenge. The perception of all other regulations
depends on the participants' role, but it can be noted that regulations that require product
traceability throughout the Supply Chain process are considered as important or strategic by over
half the participants (56%): the information provided to the end customer, environmental labelling
for consumer products or the REACH regulation.
As our study was conducted in April 2014, the eco-tax for heavy goods vehicles in France was a
topical subject, which no doubt influenced the results (declaration of the minister for ecology on 3
April to the parliamentary committee on 30 April). It is therefore not surprising that the eco-tax was
identified as being an important and even strategic challenge by most participants.
Another topical subject - not as recent but more dramatic - can be associated to the second
regulation identified in this study: the information provided to the end customer. Indeed, in April
2013 a building in Bangladesh collapsed, causing the death of over 1,000 workers, thus highlighting
the working conditions of those who manufactured the products consumed by Western countries.
Also in 2013, the horse meat scandal highlighted the lack of information in the agri-food sector.
Therefore, whether in response to regulation or to market requirements, consumer information
concerning the manufacturing conditions of the products they purchase has become a challenge for
everyone.
51%
51%
35%
49%
20%
68%
46%
48%
23%
32%
61%
29%
11%
26%
24%
Eco-tax for heavy goods vehicles
Information provided to the end
customer
Environmental labelling of consumer
products
REACH regulation
WEEE regulation
Challenges relating to regulations
Priority challenge for 54% of logisticians
(n=51 industrial businesses, 28 distributors and 23 logisticians)
Distributors
Logisticians

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As a commitment to the environmental french government initiative on raising consumer awareness
to the products' environmental impact, the environmental labelling of consumer products appears in
3rd position, showing us how difficult it has been for companies to implement it.
The last two elements in the ranking are regulations in force that of course require the necessary
provisions. However, the REACH regulation has not yet been fully implemented as it is scheduled
until 2018 and its goal of substituting the most dangerous chemical products is still a real challenge
for the industrial businesses concerned. This challenge also concerns distributors - although indirectly
- as they must be capable of informing consumers of the substances used in their products.
Result analyses also showed that for over half of the participants (56%), at least one of these three
elements were considered important or strategic for their company: end consumer information,
environmental labelling for consumer products or the REACH regulation. Their common feature is the
"product" traceability requirement throughout the supply chain process, from the first supplier to
the end consumer.
THE SUPPLY CHAIN INFORMATION SYSTEM
The Supply Chain Information System's contribution is well-perceived by the participants, as 83%
consider it to be important or even essential. Its components namely include ERP, widely used by
industrial businesses for their logistical operations. However, WMS appears to be the most
deployed Supply Chain management software package, with a possession rate of 85% for
distributors and 3PL providers. On the other hand, TMS is well-established with 3PL providers but
has only been able to convince a small number of distributors and industrial businesses. Decision-
making tools (BI) are also frequently used by 65% of the participants.
One of the general questions dealt with how the Information System's contribution was perceived
when it came to reaching the company's Supply Chain objectives. The answers below clearly show
the importance of the Information System, deemed essential by 64% of the participants: 55% of CIOs
and 66% of non-CIOs!
64%
20%
10%
6%
The contribution is essential
The contribution is important
There is a connection
between the IS and the Supply Chain's
objectives
There is no connection
between the IS and the Supply Chain's
objectives
IS's contribution to the completion of SC objectives (n=96)
83%

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A detailed analysis of these results shows that IT contribution is mostly perceived as important or
essential in the biggest companies and by 3PL providers. Is this indicative of the importance of the
Supply Chain, at the heart of a 3PL provider's activity but less important for an industrial business
which is more focused on its manufacturing activities?
Companies were also required to list the software packages used for Supply Chain management
purposes. Below are the most used software packages as listed by the participating companies, as
well as a 2nd chart that represents less deployed software packages.
21%
19%
50%
69%
Fewer than
250
employees
More than
250
employees
IS contribution (n=28 "fewer than 250
employees" and 68 "more than 250")
Important Essential
18%
27%
14%
53%
65%
86%
Industrial
businesses
Distributors
Logisticians
IS contribution (n = 49 industrial
businesses, 26 distributors and 21
logisticians)
Important Essential
55%
82%
61%
59%
49%
64%
85%
65%
70%
42%
21%
8%
85%
42%
65%
20%
50%
31%
WMS ERP BI Forecasts Collaboration
portal
Planning
Possession rate according to the participant's role - part I
(n= 41 industrial businesses, 25 distributors and 18 logisticians)
Industrial businesses Distributors Logisticians

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ERPs seem to be the most used software packages for Supply Chain management, particularly for
industrial businesses. Industrial businesses are in fact those who use WMSs (Warehouse
Management System) the least for the management of their warehouses. In all likelihood, this is
because for most industrial businesses, warehouses are quite simply organised and ERP warehouse
management modules suffice.
Conversely, WMS possession rate for distributors and 3PL providers is high - 85% - and is clearly the
most used software package for Supply Chain management. On the other hand, TMS is well-
established with 3PL providers but has not always been able to convince distributors and industrial
businesses.
Decision-making tools (BI) are also frequently used by all participants, thus showing that the
development of these solutions in companies over the last few years also concerns Supply Chain
processes.
For other software package families, it can be noted that industrial businesses often use forecast and
planning solutions (that include APS modules), whereas distributors use them much less. However,
they also need forecasts in order to plan their orders and reduce the amount of unsold items and
stock-outs as much as possible.
As for flow management and monitoring solutions, they have recently attracted a great deal of
media coverage and a third of all participants claim they have one. They can either complement or
compete against forecast/planning solutions and are based on the fact that even the best forecasts
can be flawed and that executive operations must thus be managed and resources must be available
to react quickly to events that are not necessarily malfunctions.
Lastly, concerning collaboration, only very few distributors are equipped with appropriate software
solutions. Is that because they are at the end of the chain? The purpose of these collaboration
solutions is however to manage coordination between stakeholders - from suppliers anywhere in the
world right up to the point of sale - by sharing forecast data and/or sharing information concerning
logistical execution operations, with a view to improving each stakeholder's responsiveness and thus
Supply Chain flexibility, which was one of the main challenges listed above.
24%
29%
40%
22%
18%
28%
32%
5%
32%
5%
78%
39%
0% 0%
21%
TMS Flow management S&OP Customer behaviour
analysis
"Many to many"
collaboration
Possession rate according to the participant's role - part II
Industrial businesses Distributors Logisticians

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62%
57%
54%
43%
36%
17%
The amount of investment required
for the Information System
Resistance to change
Lack of internal
skills
Lack of recognition of
the Supply Chain by the GM
Insufficient budget
Available software packages
are irrelevant
The main difficulties faced concerning future
Supply Chain processes (n=95)
IS THE INFORMATION SYSTEM EQUAL TO CURRENT REQUIREMENTS?
An initial response was provided directly by the participants, only 17% of which selected "The
Supply Chain Management software packages available on the market are not appropriate".
However, it can also be noted that 62% selected "The amount of investment required for the
Information System" as a difficulty.
In addition, data analysis for various questions concerning the 4 main challenges earlier identified
helped us conclude on the following.
- A large majority (85%) of participants for whom warehouse optimisation was an important
challenge are equipped with a WMS and about two thirds (67%) are satisfied with the services
it provides.
- Fewer of the participants (64%) who consider cost reduction to be an important challenge -
meaning these costs needs to be measured and analysed - are equipped with a BI tool, and
about two thirds (68%) are satisfied with the services provided by their BI solution.
- Amongst the participants who consider Supply Chain flexibility to be an important challenge,
one third is equipped with a flow management and monitoring solution, with a good
satisfaction rate of 83%. In addition, those for whom the challenge is strategic are 1.5 times
more equipped with "many to many" collaborative solutions and TMSs than the panel's
average, thus meaning the stakeholders equipped themselves so they could consider the
movement of goods in an extensive Supply Chain.
- The analysis shows that participants for whom reduced product availability deadlines is a
strategic challenge are more equipped with collaboration solutions: their possession rate is
25% higher than the panel's average and their satisfaction rate regarding the services provided
is 75%.
In an attempt to answer the question "Is the Information System equal to current
requirements", several answers collected during this study can be considered. Challenges, equipment
choices and satisfaction levels declared by the participants regarding the services provided by the
software packages, or even the main difficulties faced concerning future Supply Chain processes.
Regarding this last point, it can be
noted that only 17% of the
participants selected "The Supply
Chain Management software
packages available on the market
are not appropriate". Conversely,
the main difficulty faced does in fact
concern our topic at hand: "The
amount of investment required for
the Information System" was
identified by 62% of the participants
as being an important difficulty.

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If we now turn to warehouse management optimisation, one of the four challenges that concern all
three roles (see above, section on challenges), it can be noted that:
- It is an important or strategic challenge for 86% of the participants
• 93% of distributors
• 92% of 3PL providers (strategic for 71%)
• 83% of industrial businesses
- 84% of them consider IT contribution to be essential or important (63% essential)
- 70% of them are fitted with a WMS (Warehouse Management System) and 14% intend to
purchase one
- Among the latter, 67% are satisfied and even highly satisfied with the services provided by
their WMS
Thanks to this information, it can be said that:
- The need for a warehouse management software package for optimised warehouse
management is shared by a vast majority of the participants. The 15% who do not currently
have a WMS and do not intend to purchase one are the only ones who do not share this
point of view. These participants, opposed to the use of a WMS, however consider that IT
contribution is essential but do not yet seem to have found a viable solution given the
market's available software packages.
- A two-thirds majority of users are satisfied with the services provided by their WMS, which
can also be read the other way round: one third of all users are dissatisfied, which is not a
very good score even though none were highly dissatisfied
Concerning the reduction of Supply Chain costs, it can be noted that:
• 100% of distributors! (strategic for 69%)
• 84% of 3PL providers
- 64% of them are fitted with a reporting/Business Intelligence tool and 16% intend to
purchase one
their reporting/Business Intelligence tool
Thanks to this information, it can be said that:
- The need for a reporting tool - that makes cost indicators available thus allowing for cost
reduction - is shared by a large majority. The 20% of participants who do not currently have
one and do not intend to purchase one are the only ones who do not share this point of
view. They however consider that IT contribution is essential. They no doubt use another
type of IT solution to measure costs, either in Excel, using an operational software package or
thanks to specific developments.
- The satisfaction level is similar to WMSs and entailed the same comments.

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We associated Supply Chain flexibility with the flow management and monitoring system. Here are
the elements:
• 95% of 3PL providers (strategic for 59%)
- 33% of them are fitted with a flow management and monitoring system and 11% intend to
purchase one
their flow management and monitoring system
This profile is rather different to the previous two, with a possession rate that is almost halved (33%)
but with a much higher satisfaction rate (more than 4/5 compared to 2/3 previously). It can also be
noted that only one participant equipped with this type of solution considers that IT contribution to
the SC's objectives is neither essential nor important. In addition, an analysis of the equipment
owned by participants for whom this challenge is strategic shows that they are significantly more
equipped than the others with "many to many" collaborative solutions and TMSs (possession rate is
1.5 times higher), thus showing stakeholders who are prepared to consider the movement of goods
in an extensive Supply Chain.
Lastly, reducing product availability deadlines for end customers is an objective that, even more so
than flexibility, results more from the search for alternative organisational conditions than from the
optimisation of current organisational processes. Connections with the various types of equipment
are however not obvious. The analysis shows that the participants for whom this challenge was
strategic are more equipped with collaboration solutions. Their possession rate is in fact 25% higher.
The following data is thus obtained:
It is a strategic challenge for 49% of the participants
• 46% of 3PL providers
- 53% of them are already equipped with a collaboration portal with their partners (42% of all
participants) and 20% have subscribed to a "many to many" collaboration platform (16% of
all participants).
their collaboration portal and by the "many to many" platform.

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4%
42%
43%
11%
8%
39%
49%
4%
highly
dissatisfying
rather
dissatisfying
satisfying
highly
satisfying
Satisfaction level regarding collaboration
throughout the supply chain process
(n=104 and 100)
External
Internal
COLLABORATION
With Supply Chains rising to an increasingly international level, and with the development of multi-
channel activities, stakeholder coordination and thus collaboration are becoming true focus points.
Satisfaction levels regarding this subject are average, with just over half the participants having
declared being satisfied or highly satisfied: 53% for external collaboration and 54% for internal
collaboration.
An analysis of the results shows that those equipped with collaborative solutions are twice as
satisfied as participants who are not equipped with this kind of solution. In addition, fewer of the
equipped participants identified difficulties and namely the most important difficulty: that of
sharing information.
Moreover, the existence or quality of available collaborative solutions was not identified as a
difficulty by the participants. Therefore, although their benefits can be measured namely thanks to
an improved satisfaction rate, it seems that the potential advantages of collaborative solutions are
not yet clear to companies.
Collaboration is an important topic, namely because of the large number of stakeholders that need
to be coordinated throughout the supply chain. Here are a few figures, drawn from this study, that
illustrate this constraint:
- 35% of the participants partly subcontract their logistical activities
• This particularly applies to large companies that count over 250 employees (42%) and
industrial businesses (44%)
• It is only entirely subcontracted by 6% of the participants
- Close to 90% of the participants manage international flows
• Industrial businesses in particular (+95%) but also distributors (90% conduct import
activities and 76% carry out export sales)
- A third of the participants has an e-commerce activity
• 60% of distributors and 19% of industrial businesses
- The various channels' logistical activities are separated or partially pooled by 62% of the
participants
Therefore, flow internationalisation and
multi-channel commerce reinforced the
number of stakeholders in charge of the
Supply Chain, despite partial pooling.
And satisfaction with collaborative
processes, which are essential in this
context, is average as can be seen in this
chart: satisfied and highly satisfied rates
of 53% for external collaboration and
54% for internal collaboration.
3PL providers are the most satisfied, with
respectively 62% and 71%, whereas
distributors are the least satisfied with
rates of 34% and 33%.
54%
53%

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53%
63%
33%
54%
67%
35%
Overall
With a
collaborative
solution
Without a
collaborative
solution
Satisfaction rate regarding
collaboration, according to the possession of
a software package (n=104 and 100)
External
Internal
65%
60%
37%
37%
31%
29%
28%
16%
12%
Sharing information
Contradicting objectives
between stakeholders
Geographical scattering
of stakeholders
Ill-adapted IT solutions
High number of
stakeholders
Our ISs are not able to
communicate
We do not have a
collaborative solution
Language-related
differences
No particular difficulties
Main difficulties - INTERNAL collaboration
(n=98)
56%
45%
37%
37%
34%
25%
25%
20%
7%
Sharing information
High number of stakeholders
Contradicting objectives
between stakeholders
We do not have a
collaborative solution
Geographical scattering of
stakeholders
Ill-adapted IT solutions
Our ISs are not able to
communicate
Language-related differences
No particular difficulties
Main difficulties - EXTERNAL collaboration
(n=96)
If we analyse the satisfaction of those
equipped with a collaborative portal and/or
who have subscribed to a collaboration
platform, a notable different can be
observed:
Therefore, distributors that are poorly equipped with collaborative software packages are also fairly
dissatisfied with the collaboration during the Supply Chain process, both internally and externally,
and vice versa with regard to the partner 3PL providers.
The main difficulties faced regarding collaboration (both internal and external) first included the
difficulty of sharing information - this point was particularly highlighted by distributors (85% for
internal collaboration) and much less by 3PL providers (47% for internal collaboration). And, just like
above, fewer of those equipped with a collaborative solution identified the difficulty of sharing
information as a difficulty (54% compared to 65% for the entire panel).

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2%
18%
49%
29%
2%
Strong
decrease
Decrease
Stable
Increase
Strong
increase
Overall development of the SC budget
(n=91)
Another important difficulty regarding internal collaboration is the coexistence of sometimes
contradictory objectives between the various stakeholders, and this difference exists between
distributors and 3PL providers.
Moreover, the suggested difficulties concerning the Information System are only rarely identified by
the participants. The choices are "We have no collaborative IT solutions" (28% and 37%), which is
surprising as the above-mentioned possession rate is relatively low, as well as "The IT solutions used
by our company are not suitable" (37% and 25%) and "Our information systems are not able to
communicate" (29% and 25%).
It therefore seems that the collaborative solutions' potential advantages are unclear to companies,
despite the fact that users of this type of solution can see tangible benefits and there are significantly
more participants that are satisfied with their collaboration process.
INVESTMENT PROJECTS
About half the participants declared stable budgets, but budget increases were also declared,
particularly by 3PL providers (43% declared their overall budget had increased). For all participants,
this mostly concerns budgets dedicated to organisational projects and to the deployment of new IT
tools, which have gradually been increasing for over half the participants.
The application components most concerned by the investment projects are partly software
solutions that have already been implemented such as WMSs and BI solutions, which reinforce
their position regarding essential Supply Chain management solutions. Other families are selected
for intended projects, thus proving how much companies value them: TMSs which have held this
position for several years now, and S&OP planning and management solutions that help face
planning challenges and well as help with Supply Chain risk management and synchronisation
between its various stakeholders. Collaborative solutions are also mentioned. Participants
consider the latter to be the most relevant solutions for the SaaS mode, just like TMSs (for
respectively 91% and 76% of the participants).
Close to half the participants stated that
their Supply Chain budget was currently
stable, just under a third (31%) that it had
been increased and a fifth said it had
been decreased:

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29%
29%
27%
29%
2%
14%
18%
27%
18%
2%
4%
Overall
Logisticians
Distributors
Overall development of the SC budget (n=91)
Increase Strong increase Decrease Strong decrease
35%
32%
28%
16%
16%
1%8%
13%
17%
2%
1%
4%Organisational projects
Deployment of new IT tools
Deployment of
mechanisation/automation
Developments in the composition of the Supply
Chain budget (n=54 to 91)
31%
35%
17%
37%
17%
12%
21%
16%
13%
29%
21%
4%
1%
2%
Overall
Logisticians
Distributors
Development of the deployment budget
for new IT tools
An analysis of the responses for each role
shows that for industrial businesses and
distributors, just as many of them have
increasing and decreasing budgets, and just
under half have kept a stable budget. The
situation seems to differ for 3PL providers, as
none of the participants declared their budget
had decreased and 43% declared their budget
had increased. In this chart, stable budgets
have not been shown:
The same question was asked for
several of the budget's components.
Similarly represented in this chart, we
can see that the budgets that most
frequently increase concern
organisational projects and projects for
the deployment of new IT tools. For
these two elements, a little less than
40% of the participants declared their
budget was stable and about half said it
had increased. The similarity between
these two lines supports the
observation that these two subjects - IT
and organisation - are closely linked
(only 5% of the participants whose IT
deployment budget has increased had a
decreasing organisation budget and vice
versa).
The analysis per role of the budget for the
deployment of new IT tools shows fewer
discrepancies, although budgets increased
less for distributors and decreased less for
industrial businesses.

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With a view to detailing the purpose of these investments, we can review the various software
packages possessed by the participants or which they intend to purchase in 2014.
In the chart below, we used the possession used detailed earlier, but this time focused on the
software packages with the highest purchase intention rates for 2014. We can now see that TMSs
generate the most investment potential. This situation seems to have lasted for several years now,
but the projects are rarely fully completed. WMS projects also show a great deal of purchase
intention, even as WMS possession rates are already high, thus reinforcing the essential and now
"commonplace" feature of this type of equipment. Decision-making tools are another category of
software packages that seem to have the same profile type and companies are right in thinking their
purchase is justified.
Flow management tools and "many to many" collaboration platforms are also listed in this table.
These solutions are more recent - although management solutions already existed under a different
name 15 years ago - and make the most of new technologies and of the expansion of the Internet
and Cloud systems. Considering the promises made regarding this type of solution, higher purchase
intentions were expected.
Lastly, S&OP planning and management solutions are well-ranked in this hit-list of purchase
intentions. A profile analysis of the participants equipped with this type of solution made it possible
to identify which challenges were declared as important or strategic. They are as follows:
- demand planning,
- Supply Chain risk management,
- synchronisation between the various stakeholders within the supply chain (specifically for
participants equipped with S&OP management solutions).
Moreover, the % of satisfied participants regarding the services provided by this type of software is
average: 56% for both families.
24%
55%
64%
40%
61%
29%
18%
28%
85%
8%
5%
70%
32%
5%
78%
85%
31%
65%
39%
21%
17%
16%
15%
14%
13%
12%
11%
TMS WMS Planning S&OP BI Flow
management
"Many to many"
collaboration
Equipment with the highest number of projects forecast
Industry Distribution 3PL % projects

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Lastly, the Cloud is a topical matter in logistics. It makes it possible to link stakeholders who work
together in sometimes temporary organisations, created according to logistical flows, and also helps
smaller stakeholders integrate the digital value chain without too much investment. However, as
shown in the chart below, not all Supply Chain management software packages are as relevant or
justifiable as each other when used in SaaS mode. Therefore, collaborative solutions and transport
management are the most expected for this type of communication. Opinions differ regarding other
software packages, and many participants have diverging views.
27%
29%
38%
36%
23%
15%
13%
14%
40%
68%
36%
32%
30%
11%
6%
22%
26%
18%
13%
3%
Planning projects
Warehouse management
software packages
Flow monitoring software
packages
Transport management software
packages
Collaborative platforms
Software package(s) for which use in SaaS mode is relevant
(n=66 to 70)
Quite relevant
Very relevant
Not particularly relevant
Irrelevant

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6 - CONCLUSION
The challenges faced by Supply Chain stakeholders are firstly to ensure operational performance and
secondly to respond to recent and upcoming developments. The subjects mentioned such as
traceability, collaboration or flexibility are not exactly recent and are the basis of research and
development work carried out by publishers over the last few years.
Even though the Information System is an essential contribution to the Supply Chain's objectives,
there seem to be fewer connections between a particular software solution and its possible benefits.
Lastly, we were surprised by the low investment levels for certain solutions, despite their
considerable potential benefits.
We now know that investment possibilities for TMSs have been rising for several years, a fact which
is proven in this study. A great deal of feedback was provided concerning the important benefits
measured in user companies, both by shippers and carriers. Nonetheless, TMS penetration in
companies has been very slow and is still today only significant for logistical service providers.
The other example quite clearly expressed in this study is that of collaboration. This subject has
gathered soft vendors’ forces for over 15 years - whether regarding the enhancement of forecasts by
having several departments within the company collaborate or by coordinating the activities of all
stakeholders who act in the supply chain. But just like for TMSs, the possession rate remains low and
investment possibilities are modest, even though they are not at their lowest. And yet, in the results
presented earlier, we can clearly see that user satisfaction with the services provided by these
solutions is good, generally better than for other software solutions and in fact twice as many users
declared they were satisfied or even highly satisfied.
In a complex and fast-developing environment, both in terms of customer requirements, regulations
and technologies, it is crucial to talk about uses and present feedback, so companies can identify the
missing link between their context and their needs.

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USER FEEDBACK:
Supported by itelligence, "La Poste, Pôle
Colis" deploys SAP's TMS
As part of La Poste, this business unit is
responsible for delivering packages within
48h all over France and has deployed a
transport management software package
which has partially replaced former
developments that no longer complied
with current challenges.
Feedback from a company
that uses a transport
management solution.
This statement highlights the
issue faced and the reasons
for choosing the software
package in the project's
context. A report was
established regarding the
benefits observed and the
project's next steps.
It was gathered directly by le
CXP from the Finance IT
Director, David Bizien.
Overview of "La
Poste, Pôle Colis":
"La Poste, Pôle Colis" is a
business unit in charge of
transporting and delivering
packages all over France
within 48h.
"La Poste, Pôle Colis" is no.1
in France and no.2 in
Europe in home delivery.
Key Figures:
- 800,000 transport links
managed yearly
- About 270 million objects
managed per year, i.e. an
average of one million
packages processed daily.
THE PROJECT
ISSUE:
Choosing a transport management solution that responds to
complexity and flexibility issues.
CHOSEN SOLUTION:
SAP Transportation Management 9.0, launched in January 2014.
MAIN BENEFITS TODAY:
Administrative time spent managing transport invoices is significantly
reduced.
Communication between transport managers is improved.
IMPACT OF GENERAL CHALLENGES:
- Sustainable development is conveyed by an ambitious objective for
"La Poste, Pôle Colis": CO2-neutral deliveries. The implemented
solution will contribute to this objective but it was not what
triggered the investment, nor was it a decisive criterion when
choosing the solution.
- The development of consumption methods has strongly affected the
transport of packages.
o A relatively dynamic market (growth estimated at 3.5% per
year) thanks to the increase in e-commerce activities,
o More diverse delivery methods
o Enhanced competition and development of package collection
points (Amazon now sends more packages than La Redoute)
The connection with application choice criteria is very strong.

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Organisation transport with "La Poste, Pôle
Colis"
Transport is at the heart of Pôle Colis' activity and is
organised according to three levels:
- National: links between package-sorting
platforms.
- Regional: links between package-sorting
platforms, Post platforms, delivery points,
shop pick-up points, etc.
- Last km for delivery to the end customer
"La Poste, Pôle Colis" has trailers for transporting
packages and charters trailers and lorries of various
sizes.
Challenges
The administrative time spent controlling transport
invoices had become too long. In addition, the
implementation of a more efficient system was also
required to make relations with transport providers
easier and ensure the best possible payment
deadlines.
In this current context, high volumes and complex
situations are also an issue:
- a large number of service providers,
including some that used Excel as a
management tool,
- 800,000 transport links to be managed
yearly,
- complicated regulations and transport
prices.
Lastly, "La Poste, Pôle Colis" used specific solutions
that were ill-adapted to the volume and to the
flexibility required for regional transport.
The implemented system
The solution implemented today concerns regional
transport in Ile-de-France and makes the processing
of transport invoices for the Package division
possible.
The selected principle consists in pre-invoicing based
on the finalised transport plan and on the carrier's
contractual prices. This pre-invoice is sent to the
carrier who contacts the manager at "La Poste, Pôle
Colis" in the event of a problem. Normally, the
carrier then sends an invoice that corresponds to
what is expected. Invoice alignment is carried
out between the invoice sent by the carrier and
the purchase order generated in SAP based on the
pre-invoice elements.
The other processes were not modified so that
users could keep their histories and points of
reference. Our objective is to gradually switch
over to SAP.
The application is deployed via servers virtualised
in "La Poste, Pôle Colis".
What the project has taught us
Modifying the process helped us make invoice
processing smoother, improve controls and
helped save a considerable amount of time when
calculating financial provisions. User feedback has
generally been very positive concerning the
implemented solution's reliability.
Moreover, sharing a common solution in a
network helps transport managers better
communicate with each other.
Lastly, the automatic follow-up of the transport
means used is a secondary benefit in line with the
sustainable development objective set by "La
Poste, Pôle Colis": CO2-neutral deliveries.
For a transport point of view, the system makes
their job easier and helps shorten payment
deadlines.
The project's next steps
Several areas of improvement are currently being
developed.
From a functional standpoint, managing lorry-free
weekend regulations, archiving the transport plan
or managing yard trailers will help extend the
solution.
From a technical standpoint, the implementation
of an event-monitoring system will help directly
track data linked to the completion of the
transport plan within the application or for each
import, namely regarding lorry departure and
arrival times or disputes with suppliers. This
development will therefore offer real-time
monitoring possibilities during the completion of
the transport plan.
Lastly, the geographical area must also be
extended so as to manage all regions throughout
France.

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itelligence NTT Data Business Solutions
- Address: itelligence AG
Königsbreede 1 - 33605 Bielefeld
- Website: www.itelligencegroup.com
- CEO : Herbert Vogel
The company
itelligence is one of the leading international full-
service providers for SAP® solutions, employing
more than 3,800 highly qualified employees in
22 countries. Our SAP expertise is unrivalled and
has been developed over the last 25 years,
supplying specialized integrated business solutions
for over 5,000 customers worldwide and a
turnover of EUR 457.1 million in 2013.
Key information
Founded in 1989
SAP Gold Partner & SAP Global Partner
3 800 employees
2013 turnover: EUR 457.1 million
List of references
AHLSTROM ; ARMACELL ; CONCARDIS ; DEUTZ AG ;
DEXXON GROUP E.ON RUHRGAS AG ; ED AG GROUP ;
FRASER AND NEAVE ; GEBRÜDER WEISS HANSA-
FLEX ; HAWE ; HENKEL ; HERBAPOL ; KEB ; KLÖCKNER
& CO ; KRONE LEICA MICROSYSTEMS ; LEKKERLAND ;
THE MENARINI GROUP ; MERCEDES-BENZ NOBILIA ;
RANDSTAD ; REPOWER SYSTEMS SE ; RUAG ; TNS
INFRATEST TORRES VOLKSWAGEN ; WACKER
NEUSON SE.
Services
Our service portfolio includes SAP Strategy, SAP Licensing, Implementation and Process Consulting,
Outsourcing and Application Management Services. We are pioneers in the development of industry-specific
solutions and our experts work hand in hand with SAP on new scenarios and ground-breaking solutions for
business analytics, in-memory computing and SAP HANA®, cloud, and mobility. In 2013,
itelligence generated total sales of EUR 457.1 million.
Portfolio
SAP: licenses, consulting, implementation, and SAP Managed Services.
SAP innovations: In-memory computing and SAP HANA, analytics, cloud, and mobility
it.solutions: Tailor-made industry solutions for the midmarket (e.g. it.automotive, it.trade,
it.manufacturing)
SAP Managed Services: Certified hosting services with data centers in Denmark, Germany, Malaysia,
Poland, Switzerland and the US; remote services, application management services, 24 x 7 support and
helpdesk

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A propos du CXP
Le CXP est un cabinet européen indépendant d’analyse et de conseil en logiciels applicatifs. Leader en Europe,
le CXP offre à ses clients un service complet d’assistance pour l’évaluation, la sélection et l’optimisation de
solutions logicielles : des études de benchmarking produits, des prestations personnalisées (audit du Système
d’Information, rédaction de cahiers des charges, consultations d'éditeurs, assistance à maîtrise d’ouvrage...),
et des études de marché. Le CXP intervient dans plus d’une dizaine de domaines (BI, SIRH, gestion de contenu,
IT management, finance, ERP, CRM…).
Chaque année, le groupe CXP apporte son expertise à plus de 1500 DSI et directions fonctionnelles de grands
comptes et entreprises du mid-market.
Basé à Paris, le CXP est présent sous la marque BARC (Business Application Research Center) en Allemagne, en
Grande-Bretagne, en Autriche et en Suisse.

For further information:
CXP Customer Services
relation_client@lecxp.com
Tel.: +33 (0) 1 53 05 05 90
www.cxp.fr
Le CXP – 13 rue le Sueur – F-75116 PARIS – +33 (0)1 53 05 05 53 – www.cxp.fr

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