Sep 15, 2010
That sort of view should warm the cockles of anyone inhabiting this space but what is it based on? In this article Manhattan Associates sees uptick in supply-chain business, an interview with the CEO of Manhattan Associates is presented.
If you read the article, you would be able to immediately grasp the underlying thought process that produces this sort of view namely the theory of business cycles and the availability of new technology. Perhaps that is sufficient to warrant the intimation that there is going to be an uptick in the supply chain business but color me the skeptical – me thinks only green (i.e. dollars) indicate that.
Even though that lesson has been drilled into CEOs time and again, many aggressively cut R&D and key projects during tough times, just like they do with operating expenses.
But when important capital investments are put on the back burner, companies risk future growth in what can be a penny-wise, pound-foolish move.
Still, many did just that during the height of this recession — if one bellwether firm’s experience is indicative. Some had no choice, given the credit crunch.
“Companies didn’t know where they would get cash, so they postponed investment,” said Pete Sinisgalli, president and CEO of Manhattan Associates.
That’s business cycles right there – nothing more. As for new technology, well, it’s the same old technology – just different this time.
Instead of focusing on just one part of a company’s supply chain, such as inventory control, Manhattan Associates is now selling software that ties together the different stages. The software can maximize efficiency throughout the entire process, from planning to inventory control to distribution.
That’s in contrast to individual software packages that can produce the optimum result in one area, but neglect to factor in others. Without stitching the software together, a company could arrive at the right inventory solution, but it might be tying up too much capital.
I did find this particularly humorous though
“We’re constantly inventing new math and science to help companies operate more efficiently,” said Sinisgalli, who has headed Manhattan Associates for the past six years.
Maybe, we could do with less “new math and science” in the business world for a little while longer until we’ve recovered some business-skeptical sense, given how that just “old math and science” did just a few years ago.
I’ll take the time now to laugh : A very dignified guffaw.