Gartner Research

Supply Chain Planning Implementation: Avoiding Failure, Driving Success

Published: 17 August 2001

ID: G00100272

Analyst(s): Karen Peterson

Summary

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...

Table Of Contents
  • Management Summary
  • Introduction
  • Ten Best Practices for Successful Integrated SCP Suite Implementations
  • Guidelines for Selecting an SCP System
    • Evaluating Application Features, Breadth and Capabilities
    • Weighing the Single-Vendor, Multivendor and Hybrid Approaches
    • Demand Proof — The Importance of References and Demos
  • Keeping the Implementation on Track: The SCP Competency Center
    • Getting the Right People
    • Serving the Right Roles
    • Anticipating the Challenges
  • Summary and Recommendations
  • Acronym Key

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