Distributors To Spend More On IT
The report, “Distribution Industry IT Spending Profile For 2004,” also said spending on application software as compared to actual spending in 2003 will remain about the same for 57% of companies, with 21% spending slightly more. Oracle, PeopleSoft and SAP topped the list of Enterprise Resource Planning (ERP) vendors distribution companies have worked with in the past 12 months, but 27% of companies surveyed said they don't consider any ERP vendor as their core business application provider. Oracle followed suit with 13.1% of companies considering it their core business application provider.
Distribution companies were also asked, “When adding new functionality, what is your preferred approach?” Forty-five percent said they choose the best-of-breed vendor and integrate, 37.5% said they purchase add-on modules or services from a core provider, and 17.5% said they use custom development.
The distribution industry tops other industries such as manufacturing and retail in the adoption of RFID technology in many stages of implementation. Nearly 25% of distribution companies surveyed are currently in the production phase of RFID implementation, while only 7.9% of companies in other industries are.