SaaS for SCM

SaaS is attracting the attention of manufacturers who wish to benefit from hosted software for supply chain functionalities such as demand planning and factory scheduling. A recent survey by AMR Research has revealed that in the U.S 26% of the companies surveyed are exploring the on-demand offering. The reason for this interest in SaaS is the need for applications that can aid in streamlining the B2B activities within highly fragmented supply chains. Also, the perennial attraction of SaaS is the opportunity to cut capital costs, save on deployment space, and avoid license fees.

The manner in which SaaS has succeeded in the CRM domain has caught the attention of vendors who have till now concentrated largely on conventional software. The supply chain functionality first gained exposure to web-centric environments in the nineties when online B2B hubs operated as platforms for partner collaboration and as a marketplace. One factor affecting the take-off of SaaS in the field of supply chain is that supply chain requires intensive computations; this is something that is not easy to achieve with the hosted multi-tenant model. Client-server applications are better suited to provide the speed required for such activities.

However, the availability of wireless and broadband has led to improved access and performance and application integration has become more streamlined with the help of web service APIs. User experience is also being enhanced by the use of technologies such as Asynchronous JavaScript + XML (AJAX) and at the same time data transport requirements are being reduced. Distribution planning, contract management, and factory scheduling are supply chain features that are being delivered on the web by vendors. JRG Software is a company that provides web-based factory planning and scheduling for the purpose of improving retail premises fulfillment rates, response time to variations in demand, and minimize order-to-production times. Hosted supply-chain is also in a position to manage collaborative sourcing and procurement functions. Companies such as Procuri and Emptoris offer SaaS for supplier management, spending analysis, and contract management.