Tag: Commissioned

06
Oct
2020
Posted in technology

88 Percent of Businesses Rely on Outdated Methods for Order Management According to Study Commissioned by Perficient

Intelligent Fulfillment Drives Customer Service and Boosts Return on Inventory Investment

Perficient, Inc. (Nasdaq: PRFT) (“Perficient”), the leading global digital consultancy transforming the world’s largest enterprises and biggest brands, today released the results of a study evaluating the utilization and benefits of intelligent order management systems (OMS) and automated supply chains among U.S. companies.

For the September 2020 Forrester Opportunity Snapshot study, Get Supply Chain Right: Intelligent Fulfillment Boosts Customer Service and Return on Inventory Investment, Forrester Consulting surveyed more than 200 inventory management decision makers based in the U.S. about their intelligent order management practices and rate of adoption. Many respondents reported having an intelligent fulfillment system in place for managing supply chains and fulfilling orders. In practice, however, the study found that 88 percent of companies rely on at least one manual or rules-based process, which demonstrates a gap between respondents’ perception of intelligent ordering and their established practices.

“As online sales continue to soar, companies are failing to match the growth in demand by depending on antiquated methods to fulfill orders. This leads to lost time, revenue, and customers,” said Sean Breeze, director of management consulting, Perficient. “Fulfillment infrastructures are complex, and they require sophisticated order allocation to fulfillment centers for rapid delivery. Intelligent ordering systems can help companies adequately balance demanding service expectations with inventory holding costs across a large distribution network.”

The study also found that firms base their operational strategies and decision-making on metrics that distort incentives, citing a preference to secure the lowest unit cost by buying in bulk, rather than accurate demand forecasting, improved customer service, or return on inventory investment.

Companies that invest in optimization strategies to overcome their inventory management challenges report strong results. Specifically, the study found that the top benefits have the clearest ties to business