AMR Research says the supply chain management technology market grew 4% in 2004, the first increase in three years. "For SCM providers, the past four years have been a tough ride, leaving many vendors to question their strategy while seeing the emergence of a new set of market leaders," said AMR vice president Lora Cecere. ERP giant SAP remained the market leader with 11% of the SCM market share. SAP's growth is expected to be 3% this year. AMR also identified seven major market forces that shaped the SCM market in 2004:

• Importance of warehouse management and RFID
• Growing ERP dominance
• Increasing requirements for
• industry-specific applications
• Market consolidation
• Move to midmarket
• Shift from license to services
• Agile networks and contract manufacturing

Establishing a low-cost country sourcing (LCCS) program is a matter of survival for companies, according to the latest report from market research firm Aberdeen Group, but many challenges remain in establishing this strategy. Many manufacturers like General Motors and Toyota are pushing suppliers to match pricing from low-cost nations like China and India, Aberdeen says, while its research reveals that total costs of goods purchased from low-cost countries are typically 10-35% lower than costs in the U.S. or Western Europe. On average, companies source 21% of their total spend from suppliers in low-cost countries, but in three years, that will increase to 39%.

Archstone Consulting is enhancing its Strategic Sourcing and Procurement Practice by expanding its Low Cost Country Sourcing (LCCS) service offerings, in reaction to research like Aberdeen's saying companies need more help in sourcing overseas. Archstone Consulting is an independent strategy and operations management consultancy in Stamford, Conn. John Kamauff, principal at Archstone, says in a press release, "Our expanded service offerings address the benefits of buying from low-cost countries and developing a comprehensive strategy for global buying and manufacturing as well as sales and product/process design."