Published: 17 August 2001
Analyst(s): Karen Peterson
Management Summary Since the advent of supply chain planning (SCP) projects in the mid-1980s, the success of SCP suite implementations has fueled a great opportunity to drive improvements in efficiency, reduce the cost of operations and improve customer service. Gartner estimates that 80 percent of integrated SCP suite implementation projects achieve payback within one to two years. Recently, however, Gartner has observed that many enterprises are attempting to accelerate the implementation process -- and, in doing so, are skipping key steps in the planning and technology selection phases. This can have dire consequences, as the risks of a poorly planned SCP suite implementation far outweigh the benefits provided by a successful one. In this Strategic Analysis Report, we share key recommendations on the processes and best practices that spell the difference between large returns and project failure for integrated SCP suites. We begin with an examination of the state of the SCP suite market and the pace of implementation by Type A, B and C enterprises. Next, we present 10 best practices for successful SCP deployment, and offer guidelines on the suite evaluation and selection process. We conclude with guidance on keeping large-scale SCP implementations on track through the institution of an SCP competency center within the enterprise. The following Strategic Planning Assumptions are presented in this report: o By 2003, 5 percent of SCP projects deployed during the 2001-2002 period will result in negative earnings, or in crises in customer service and public relations, due to mistakes made during the implementation process (0.8 probability). o By 2003, 35 percent of today's SCP projects will have to be re-implemented, and more than 50 percent of these re-implementations will involve a new SCP vendor (0.8 probability). o Through 2004, enterprises that institute a competency center to manage their large-scale SCP projects will see a decrease in...
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