Suppliers turning to DCM

Suppliers and manufacturers are beginning to abandon CRM solutions, which have failed to justify the cost of their implementation, in favour of demand chain management (DCM), according to the Aberdeen Group.

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By  Neil Denslow Published  September 15, 2002

Suppliers and manufacturers are beginning to abandon CRM solutions, which have failed to justify the cost of their implementation, in favour of demand chain management (DCM), according to the Aberdeen Group.

"The more widespread adoption of internet technologies, combined with the challenging sales environment stemming from the lingering global recession has caused selling organisations to heighten their focus on the demand side of the value chain," says Kent Allen, Aberdeen's research director for sell-side and demand chain management technologies.

"Leading companies in numerous vertical sectors are now deploying sell-side applications that automate processes throughout the demand chain. In doing so, they are speeding up cycle times, eliminating redundant activities, extending market reach, and most importantly, enabling buyers of all shapes and sizes with more choices and with greater input into, and control over, relevant business processes," he adds.

Sell-side e-commerce has traditionally used the internet as a channel for reaching customers and educating them about a company and its products. DCM not only guides the online selling process, but also commits to the fulfilment of orders as well as the management of post-sale processes.

Aberdeen believes that DCM improves a wide range of sell-side business processes, including brand and product information management, merchandising, order management and post sales/after market replenishment.

"Even in light of the continued sluggishness of technology buying, our practice expects to see accelerated adoption among end user organisations of customer-facing, Web-based technologies that sit between supply chain management and classic CRM suite applications and automate demand-driven business processes." Allen says.

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