THIS IDC MARKETSCAPE EXCERPT FEATURES DASSAULT SYSTÈMES
IDC MARKETSCAPE FIGURE
IDC MarketScape Worldwide Supply Chain Supply Planning Vendor Assessment
Source: IDC, 2022
September 2022, IDC #US47620822e
Please see the Appendix for detailed methodology, market definition, and scoring criteria. IN THIS EXCERPT
The content for this excerpt was taken directly from IDC MarketScape: Worldwide Supply Chain Planning 2022 Vendor Assessment (Doc # US47620822). All or parts of the following sections are included in this excerpt: IDC Opinion, IDC MarketScape Vendor Inclusion Criteria, Essential Guidance, Vendor Summary Profile, Appendix and Learn More. Also included is Figure 1.
This IDC study represents the vendor assessment model called IDC MarketScape. This research is a quantitative and qualitative assessment of the characteristics that explain a vendor's success in the supply chain supply planning space and help assess current and anticipated performance in the marketplace. Supply chain planning (SCP) has become both central and critical to the success of a resilient supply chain, and supply-side planning specifically is a key component of supply chain planning overall. This IDC study assesses the capabilities and business strategies of 16 key vendors with broad competencies in supply planning. This evaluation is based on a comprehensive framework and set of parameters expected to be conducive to success in providing organizations with insight into supply planning tools. Key findings include:
▪ IDC Manufacturing Insights defines supply planning as that component of supply chain planning overall that determines how to best meet the requirements created from the demand planning process. The objective is to ensure that the supply plan will adequately fulfill the demand to achieve both the service and financial goals for the business.
▪ Growing complexity in the supply chain, particularly increasingly diverse outsourcing, has made supply planning much more challenging. Combined with larger forecast error and a lack of complete insight into supply opportunities and constraints, the need for a competent supply planning application is central to the success of the broader supply chain.
▪ Each vendor included in this IDC MarketScape offers and has displayed demonstrable competency in the field of supply planning, and IDC would not hesitate to recommend any of it in the evaluation process.
▪ The criteria used in this IDC MarketScape (and resulting position in Figure 1) are across the dual dimensions of strategies (future plans and where the vendor is headed) and capabilities (where the vendor is today in terms of capabilities). Each of the elements within strategy and capability is then assigned a weighting based on the relative importance of each criterion in the opinion of IDC Manufacturing insights and feedback from client references and discussions.
▪ This IDC MarketScape is a starting point for manufacturers that are considering purchasing a supply planning application either for the first time or as a replacement for something they already own. The vendors included represent a "short list" — a way to winnow down the long list of service providers, both big and small, in the marketplace. It does not replace the due diligence that companies must then do to evaluate which vendor is the right fit for their needs and circumstances.
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The supply chain, whether you are a manufacturer, retailer, wholesaler, or something else, is now a critical function for companies to realize their business aspirations. It is a competitive weapon in the modern digital economy. Advanced supply chain capabilities can enable more efficient and effective
business approaches and support new business models that translate directly to business performance that is tangible and measurable. More importantly, these capabilities transition the supply chain from one that is a "cost center" to one that is an "opportunity center."
The role of supply chain planning is critical to the overall performance of the supply chain. IDC has long evangelized the notion of a singular, integrated supply chain planning facility, which we view as central to an intelligent digital supply chain evolution, but it is also now much more than that, with necessary connections to product design, manufacturing, and supply chain execution (SCE). Integrated business planning (IBP) is the holistic business process that connects all the various planning functions across the supply chain including demand planning, supply planning, inventory optimization, and sales and operations planning (S&OP).
IDC MARKETSCAPE VENDOR INCLUSION CRITERIA
The supply chain, whether you are a manufacturer, retailer, or wholesaler, is a critical function for companies to realize their business aspirations. Issues faced by supply chains over the past three years of the global COVID-19 pandemic have reinforced that if the supply chain doesn't work, the business doesn't work. Indeed, modern supply chain capabilities can enable more efficient and
effective business approaches to better handle challenges and disruptions and support new business models that translate directly to business performance that is tangible and measurable. In IDC's 2022 Supply Chain Survey, one of the more persistent and problematic gaps identified by supply chain practitioners was that a lack of digital competencies limits the ability to transition the supply chain to new business models. At IDC, we have noted in the past that the most successful businesses have transitioned the supply chain from one that is a "cost center" to one that is an "opportunity center."
The role of supply chain planning is critical to the overall performance of the supply chain. IDC has long evangelized the notion of a singular, integrated supply chain planning facility, which we view as central to an intelligent digital supply chain evolution, but it is also now much more than that, with necessary connections to product design, manufacturing, and supply chain execution. Integrated business planning is the holistic business process that connects all the various planning functions across the supply chain including demand planning, supply planning, inventory optimization, and sales and operations planning.
This document covers key vendors specifically in the supply planning space. Indeed, there are numerous vendors offering capabilities to the market, and we would judge the space to be generally mature. This does not mean that there is no innovation, rather that the foundational capabilities necessary for a competent supply chain planning tool are now table stakes.
The intent with this IDC MarketScape is to focus on those notable vendors that offer supply planning capabilities. Each of the 16 vendors included in this document meet this requirement, with the following criteria to guide inclusion:
▪ Vendors must have a global presence, with engagements in at least two major geographic regions.
▪ Vendors must have industry breadth, with engagements in manufacturing and at least one additional industry (retail, life sciences, wholesale, etc.).
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▪ Vendors must have been offering supply chain planning tools for at least five years. ▪ Vendors must have at least 10 referenceable client engagements.
Although overall revenue is not an inclusion/exclusion criterion, it is a component of evaluation as a measure of the ability for a vendor to scale. The supply planning application space has a longtail, with hundreds of companies offering capabilities. For the purposes of this document, we have focused on those that we deem to be notable, with all falling into either the Leader or Major Player categories.
ADVICE FOR TECHNOLOGY BUYERS
Supply planning is a critical capability for a resilient supply chain. The ability to develop a credible supply-side plan to adequately fulfill expected demand is a critical component in managing an efficient and effective supply chain organization and can be the difference between meeting or not meeting customer expectations for service and quality. As we noted at the outset of this document, supply planning has been around for a long time and is a generally mature application space. This does not mean, however, that progress, or innovation, has remained static; indeed, in the 16 vendor profiles that follow, the level of capability and innovation far outstrips what was available even three years ago — whether in terms of planning frequency, extended collaboration, or the use of new technologies such as artificial intelligence (AI) or machine learning (ML).
One important consideration is that supply chain organizations are faced with the choice of whether to continue with point/narrow focus applications or move to an integrated supply chain management suite. The cobbling together of myriad point solutions, even those that are best of breed, rarely results in a best of breed "whole" — in other words, the whole may be much less than the sum of its parts. If we accept that suite solutions are broadly the future and point solutions the past, then the journey must begin with the right strategy. This is a major factor in the acquisition of a supply planning application. While there may be perfectly good reasons for an organization to purchase supply planning only, the more common reality is that it is acquired as a part of a broader set of capabilities. When considering supply planning, it is important to be clear on the broad strategy for your supply chain, but also that short-term, tactical requirements may require making exceptions.
For manufacturers, retailers, or wholesalers, looking for a supply planning application — either standalone or as part of a suite — IDC offers the following guidance:
▪ Take your time in evaluating vendors. The decision to engage should be backed up with due diligence to ensure that the vendor selected has the appropriate levels of experience in your area of need.
▪ Be clear on whether you want independent point solutions or a supply planning application that is part of an interconnected suite.
▪ Keep customization to a minimum. Customized workflows and systems add a layer of complexity into the supply chain, which may be unnecessary.
▪ Look to vendors that have experience in your market segment and have the established application scale you require.
▪ Ensure that part of the evaluation considers your current set of supply chain applications in terms of how supply planning will integrate with those applications.
▪ Ensure that the vendors you consider have both the existing necessary functionally and the future capabilities you will likely need.
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VENDOR SUMMARY PROFILES
This section briefly details IDC's key observations resulting in a vendor's position in the IDC MarketScape. While every vendor is evaluated against each of the criteria outlined in the Appendix, the description here provides a summary of each vendor's strengths and challenges.
and deploy their own ML models.
Dassault Systèmes is positioned in the Leader category in this 2022 IDC MarketScape for worldwide supply chain supply planning.
Dassault Systèmes is a global software company headquartered in France and founded in 1981. It has been providing supply chain planning applications since 2002 across a range of industries including aviation, oil and gas, industrial equipment, high tech, life sciences, consumer products, and agriculture. Its DELMIA Quintiq/3DEXPERIENCE platform is a single product on a single platform that offers executive S&OP intelligence, demand planner, macro (supply) planner, master production scheduling, and detailed scheduling. In addition, the platform has extended capabilities for workforce planning and logistics. Dassault Systèmes' approach to offering SCP solutions is to acknowledge the uniqueness that comes with different industries and target specific end-to-end business processes most relevant for those industries. Its industry approach is core to the product development strategy. It ensures that the R&D focus is based upon deep customer experience and domain knowledge and strengthens its innovator position by driving new methods of solving future industry challenges.
Dassault Systèmes SCP offering provides end-to-end supply chain modeling to meet operational and business goals using artificial intelligence and optimization capabilities in a platform-based, supply chain virtual twin. With extensive capabilities in virtual twins for product, process, people, and facilities modeling as well, Dassault Systèmes allows customers to uniquely manage supply chain challenges and innovation by designing, modeling, and optimizing the necessary manufacturing and supply chain models in a truly integrated and holistic business planning process.
Dassault Systèmes' supply planning solution helps answer key questions on what to produce, procure, transport and store; as well as where, when, and at what cost to carry out each of those activities. The solution draws data from every aspect of business — sales, marketing, finance, and operations — to give you insights for optimal decision making. Its advanced modeling and proven in-memory optimization capabilities allow for simulation of all possible scenarios in an S&OP cycle. By getting the answers to what-if questions, customers are able to make the decisions that deliver the most value every time.
Dassault's strengths include:
▪ Broad functional coverage across all SCP areas, such as demand planning, supply planning, master production scheduling, detailed scheduling, workforce planning, logistics planning, manufacturing execution, and factory simulation, from a single vendor
▪ Ability to incorporate planning information from product and resource virtual twins to optimize supply chain operations in a more integrated and holistic process
▪ A single, integrated planning platform with the ability to include global stakeholders (both internal and external) across the value network
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▪ An in-memory architecture for immediate responsiveness and high performance together with an intuitive web-client user interface
▪ Capabilities such as AI meta-optimization, industry replication, configurability, KPI-based planning, performance scalability, blending, shelf life, campaign optimization, CO2 optimization, and shift optimization
The largest challenge Dassault faces as a vendor of SCP solutions comes from clients that want and need to take the next step in their maturity but choose instead to take a "no decision" or postponement path because of an internal challenge of gaining alignment and consensus since most supply chain planning projects involve multiple stakeholders. In these cases, despite the development of strong business cases and addressing specific concerns through workshops and proof sessions, prospects may still prefer the less effective but familiar status quo that they have grown accustomed to. Unfortunately, these "no decisions" only delay the inevitable as prospects' competitors move forward and the market becomes more difficult to serve.
Consider Dassault Systèmes When
Dassault has extensive experience in aviation and oil and gas, particularly with notable customers in consumer goods and agriculture. Supply chains looking for a supply chain planning offering that focuses on end-to-end supply chain modeling and industry-specific business-based outcomes should consider Dassault.
Reading an IDC MarketScape Graph
For the purposes of this analysis, IDC divided potential key measures for success into two primary categories: capabilities and strategies.
Positioning on the y-axis reflects the vendor's current capabilities and menu of services and how well aligned the vendor is to customer needs. The capabilities category focuses on the capabilities of the company and product today, here and now. Under this category, IDC analysts will look at how well a vendor is building/delivering capabilities that enable it to execute its chosen strategy in the market.
Positioning on the x-axis, or strategies axis, indicates how well the vendor's future strategy aligns with what customers will require in three to five years. The strategies category focuses on high-level decisions and underlying assumptions about offerings, customer segments, and business and go-to market plans for the next three to five years.
The size of the individual vendor markers in the IDC MarketScape represents the market share of each individual vendor within the specific market segment being assessed.
Each of the 16 vendors evaluated for this IDC MarketScape have a well-rounded scope of capabilities related to supply planning. All of the vendors ended up in the Leaders or Major Players segments due to the ability to meet the core requirements of having both broad functional expertise and a significant customer base. While there remain differences among the competitors, IDC Manufacturing Insights
would feel comfortable recommending any of these companies.
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IDC MarketScape Methodology
IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors. IDC analysts tailor the range of standard characteristics by which vendors are measured through structured discussions, surveys, and interviews with market leaders, participants, and end users. Market weightings are based on user interviews, buyer surveys, and the input of IDC experts in each market. IDC analysts base individual vendor scores, and ultimately vendor positions on the IDC MarketScape, on detailed surveys and interviews with the vendors, publicly available information, and end-user experiences in an effort to provide an accurate and consistent assessment of each vendor's characteristics, behavior, and capability.
IDC Manufacturing Insights defines supply planning as that component of supply chain planning overall that determines how to best meet the requirements created from the demand planning process. The objective is to ensure that the supply plan will adequately fulfill the demand to achieve both the service and financial goals for the business.
▪ 2022 IDC's Manufacturing Supply Chain Survey Findings and Implications (IDC #US49274422, June 2022)
▪ IDC MaturityScape: Digital Supply Chain Resiliency 1.0 (IDC #US48402418, December 2021)
▪ Resilient Supply Chain Paradigm Shift: From Unconstrained to Constrained (IDC #US48326218, November 2021)
▪ IDC FutureScape: Worldwide Supply Chain 2022 Predictions (IDC #US48298220, October 2021)
This IDC study uses the IDC MarketScape model to provide an assessment of a number of providers participating in the worldwide supply chain market. The IDC MarketScape is an evaluation based on a comprehensive framework and a set of parameters that assesses providers relative to one another and to those factors expected to be most conducive to success in a given market during both the short term and the long term.
"Supply planning is a critical capability for a resilient supply chain. The ability to develop a credible supply-side plan to adequately fulfill expected demand is an important component in managing an efficient and effective supply chain organization and can be the difference between meeting or not meeting customer expectations for service and quality," says Simon Ellis, program VP, Manufacturing
Insights and Worldwide Supply Chain Strategies.
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