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AMR Research Study Finds Supply Chain Technology Market Will Grow 7% Annually to $9.2B in 2012

Based on its analysis, AMR Research predicts there is a high likelihood the economic challenges of the coming years will offer much greater opportunity for supply chain technology adoption.

"The supply chain, and the technologies that support it, will play an important role in helping companies deal and thrive in an economy that is going to be quite unlike anything we've seen in the post-war era," said John Fontanella, vice president of research at AMR Research.

The study named five major forces that will be at work in the economy and society in the foreseeable future, and how the supply chain and the technologies that support it will help companies in the next five years.

    --  High inflation - Inflation will force supply chain managers to play an
        important role in protecting product and company margins through cost
        control and increased efficiencies in their operations.
    --  Rising commodity prices - Pressure from higher commodity prices will
        bring supply more in line with demand and reduce inventory levels from
        raw materials to the finished product.
    --  Threats to brand security - Counterfeiting, the gray market, and
        questionable quality standards will make brand protection a top
        priority.  Companies will look to adopt risk mitigation and global trade
        technologies as well as analytics to monitor distribution channel
        buy-and-sell patterns.
    --  Sustainability becomes a component of corporate decision making - Public
        sentiment will force substantive measures by industry to become more
        environmentally friendly.  This will present opportunities to more
        directly connect product development efforts with supply chain
        management to minimize waste and material usage.
    --  Cash is king - Capital spending will come under great scrutiny as
        companies preserve cash.  Technologies that increase the velocity of
        cash collection, including B2B e-commerce, will become a critical
        component of future initiatives.

The report also found that SAP, Oracle, and Manhattan Associates were the three largest SCM vendors by revenue in 2007, with a market share of 13%, 10%, and 5% respectively.

For more information about this report, please visit www.amrresearch.com or call (617) 542-6600.

About AMR Research:

Bold Ideas. Compelling Research. Pragmatic Advice. AMR Research is the No. 1 research firm focused on the intersection of business processes with value chain and enterprise technologies. Founded in 1986, AMR Research provides subscription advisory services and peer networking opportunities to operations and IT executives in the consumer products, life sciences, manufacturing, and retail sectors. To learn more about our research and services, visit www.amrresearch.com.

    Press Contact:
    Lindsey Yeaton
    lyeaton@amrresearch.com
    617-350-1745

SOURCE AMR Research