Why is AMR Optimistic about Supply Chain Spending?

At AMR Research's supply chain exchange event a few weeks back, Tony Friscia, AMR's founder and long-time CEO, offered a number of perspectives which should signal good news for vendors targeting the supply chain and procurement markets. According to Tony, we are finally getting past the "overspending of the late 90s" which caused a "five year hangover" for using innovation as an investment driver in software purchases. During this time, the primary reason companies spent money in the supply chain and procurement areas was simply to cut costs -- not to get ahead of the competition. But now, Tony argues, things are changing. Because the profit picture has been positive of late and organizations have significant cash, many are willing to consider more strategic software investments that can be justified outside of just cost savings. Let's hope that early recession indicators -- at least within the manufacturing sector -- do not change this!

Jason Busch

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