Page 18 - Logistics News - Issue 02 - 2024

S UP P LY C H A IN I T

6 imperatives for

selecting supply chain IT

Selecting supply chain management software can be the most important
decision a supply chain or IT manager can make.

he right supply chain IT solution can What are you sourcing/seeking?
be one that drives your business • Review business processes and current
T to record levels of efficiency and capabilities in light of company future
effectiveness, yet the wrong one can drive needs.
it into the ground – and this is the same • Identify your key business/industry and
solution that you’ll be committing to for the technology needs/innovations, prioritise. By Doug Hunter
next five to 10 years. • Create an initial high-level scope and key
needs list. This will be used to initially rate About the author
The selection guidelines below will allow options. Passionate about
supply chain,
you to decide on the level of detail to use • Beware, depending on your exposure to logistics and
for your IT project: business IT, you may need help here. manufacturing
operations,
Why – new software Initial vendor list – select Doug Hunter
independently
• Current processes are too manual or current relevant software vendors assists
IT has gaps or is not optimising processes. • Amend key needs list to a scoring matrix. organisations
• Scale of your business has outgrown Fill this in from your research, or circulate. at board,
management
current software capabilities. • Check each vendor’s focus and where they and specialist
• Current software version is out of profess to be functionally/industry strong. levels to optimise
maintenance or end-of-life, leading to risk and • Perform the initial key needs rating (10 to business process
total cost of ownership (TCO) and/or upgrade 20 needs, scored 1 = low , 10 = high). innovation and
growth through
cost being prohibitive or excessive. • Immediately dismiss those that score the people and the
• Current software has not kept pace with least. appropriate
tech innovations (blockchain, AI/ML, • Form an initial vendor list from the highest application of
cloud). rated – to perform formal deeper analysis. enabling IT.
• Current vendor software requires If an expected name is missing, recheck. This ‘advisory
implementation to new – upgrade not • Agree on initial vendor list. Be realistic or note’ shares some
possible. you may be classed as a vendor time- thoughts from
a supply chain
waster in the next step – they will ask who professional with
Homework – educate your is on the list: 20 vendors are too many, over 35 years
selection team two are too few. of experience in
• Research current technology trends and both managing
supply chains and
innovations. Shortlist process – approach all then moving to
• Research a range of vendor offerings. on the initial vendor list improving supply
• Ask other trusted companies/contacts • Create a more detailed needs list or chains through
what and why they bought. request for proposal (RFP), as appropriate. the application
of technology
• Check analyst reports – warning: look at • Set up an initial exploratory meeting, solutions.
relevant ones – market/industry/focus. having shared your initial key needs list.

16 NO V E MB E R/D E C E MB E R 2024 www .l o g ist i csn e w s .c o .z a