December 1996 € Volume 6 € Number 12

APICS '96

The APICS International Conference and Exhibition Mirrored Industry Trends

By Steven A. Melnyk, CPIM

This year's APICS International Conference and Exhibition was, by most accounts, a rousing success. First, the locale was terrific. New Orleans is a great place to visit. It is warm (a plus for most Northerners), relaxed and it offers great food. Second, the conference itself was a success with attendance up. The exhibition was also a success, with a record amount of exhibit space and a record number of exhibitors. More than 185 vendors set up displays in the convention center -- about 20 more than participated in the 1995 Exhibition in Orlando, Fla.

After spending some two days walking about the exhibit area I was able to identify certain specific trends. This overview and review of the exhibits is not meant to be comprehensive. Rather, it is intended to convey my thoughts and observations about developments now evident.


Something Old, Something New
In many ways, what the vendors showed at the 1996 APICS Conference was more evolutionary than revolutionary. Many of the developments being demonstrated were continuations of developments present last year. For example, one development which was relatively new focused on information management. Companies and managers are becoming aware that they are being overwhelmed by information. With the advent of the Internet, the growth of information is exploding exponentially. By some estimates, for example, some 1.2 million pages of information are being added to the Internet each month. In addition, most firms are developing very sophisticated computer-based information systems. What this means for management is that we are no longer really faced by the problem of too little information. The problem now is simply too much information.

For many managers, this explosion of information means that they must develop skills that enable them to effectively mine the information that they are given. There were several software vendors demonstrating packages that could help managers cope with this challenge. One such company, Informix Software, Inc., demonstrated its database technology, which is intended to help managers cope with and manage information. Another vendor offering an alternative management information tool was Symplex Software Systems, Inc.


Long Live ERP
Last year in Orlando, we observed the emergence of enterprise requirements planning, or ERP. This system and approach represented a natural outgrowth and extension of the MRP/MRP II approach to planning and control. Here was a system that went beyond manufacturing and finance to bring in areas such as customer service, suppliers, the receiving dock, engineering and shipping. At last year's conference, the ERP crusade was being led by companies such as SAP with its R3 system and QAD. This year, ERP was evident everywhere on the exhibit floor. Companies such as J.D. Edwards, CAMM, DataWorks, Effective Management Systems, Expandable Software, Fourth Shift Corporation, Friedman Corporation, IBM, Interactive Group, McDonnell Information Systems, PivotPoint, Q-CIM, Relevant Business Systems, Symix, the Pinnacle Group, TTW Incorporated, Computer Technology Corporation (SCT), and TRW Systems Integration Group (just to name a few) were actively promoting their ERP systems and approaches.

This movement from MRP II to ERP reflects an awareness on the part of both the vendors and the customers that it is no longer enough to manage the manufacturing and financial areas of the firm. The activities and resources of the entire enterprise must be managed and coordinated. For many firms, MRP II is a good starting point, but it is not enough.


We Must Manage the Supply Chain Today, Not Just the Factory
Not only were the vendors focusing on ERP, many were demonstrating systems designed for supply chain management, perhaps the hottest of the hot buzz words being tossed around the exhibit hall. More and more people are talking about this new concept. (Because it is a new concept, there is still substantial confusion surrounding the idea.)

For some, supply chain management is little else than a fancy term for purchasing and supplier management. However, for others, supply chain management is a broader concept that brings together the internal plant, the customer and the suppliers. This diversity was also evident in the various ways that vendors were interpreting supply chain management when applied to their packages. Some with supply chain management packages presented systems that simply scheduled vendors. These were limited in terms of what they could do in terms of managing the supply chain. Others were much broader and attempted to integrate customers and suppliers (and their flows and demands) into the internal plant's scheduling and control activities. However, still others took a unique approach to supply chain management in which they attempted to provide planners with visibility into the supply chain. That is, a manager can use the system and tools to identify the current status and location of orders within the supply chain.

Some of the vendors offering supply chain management systems included Bridgeware, Fygir, LPA Software, Manugistics, Numetrix, Paragon Management Systems, Process Logistix, and Technologix Decisions Sciences, Inc.


Everybody is Online
Last year in Orlando, people were just becoming aware of the power of the Internet. Last year, there was only one firm which had developed a software package designed to take advantage of the unique capabilities of the Internet. This was Enterprise Planning Systems. This year, Enterprise Planning Systems was back and offering more Internet-based capabilities. These included interactive planning, inventory analysis and a graphical bill browser. However, this year, Enterprise was joined by several other vendors who were offering Internet-based systems or capabilities. For example, FocusSoft, Inc. offered MilleniaNet, a Java-based Internet extension which enabled customers to place orders and to assess their status over the Internet. Alliance Manufacturing Software offered its customers an Internet-based customer support system. Calico Technology presented an Internet-based sales order configurator. Optimax Systems introduced its Internet-ready Optimized Available to Process software. Finally, Control Data Systems demonstrated its Metaphase suite of product data management products which utilize a user front-end known as Info*Engine, which is a Netscape-based integration toolkit.

If this year's APICS conference was any indication, we can expect to see more packages offering features that are strongly tied to the Internet.


Focused/Targeted Software Products
At past APICS exhibitions, there was a tendency to see packages which were designed to be very general. They were often promoted as being able to meet the needs of the small single-plant manufacturer as well as the needs of the large, multiple plant, complex corporation. This year, there was a tendency for many vendors to recognize that it was difficult for one package to serve every type of customer equally well. As a result, there was a greater tendency for vendors to offer packages focused at specific markets. For example, DataWorks offered four different manufacturing planning and control packages, each targeted to a different size of customer. What it also offered was a transition path. That is, a company could move from one package to the next without losing a great amount of its investment in the bills and in the information infrastructure. A different approach to this problem was taken by Alliance Manufacturing Software. This company demonstrated its MRP II package, which was specifically targeted to the needs of the small to medium-sized manufacturing firm. Other similar approaches were demonstrated by CMI-Competitive Solutions (repetitive manufacturing), Datalogix (process manufacturers), and Interactive Group, Inc. (discrete, make-to-order manufacturers).


Windows 95/Windows NT Becoming the Standard
Many of the demonstrations shown at this year's exhibition drove home the dominance of Windows as the GUI (graphical user interface) of choice. Increasingly, users are demanding -- and vendors are building -- front-ends and systems based on this technology. It is becoming the standard for user interfaces.


Finite Capacity Scheduling Systems Still Growing
Finite capacity scheduling systems still continue to make their presence felt within the market. There are still different approaches to this task. Some rely on rules to make scheduling decisions while others use genetic algorithms. Still others look at multiple resource constraints. Finally, others use logic drawn from the Theory of Constraints. More and more packages which do planning and control at the corporate level are incorporating these systems into their operation. Some of the firms demonstrating such packages included Berclain (MOOPI), C-Way Systems, Fygir, i2 Technologies, Lexel Corporation, Visual Manufacturing, Northern Computer Systems, Inc. (Vision 4000 for Windows), Optimax, PeopleSoft, Red Pepper Software Company, Scheduling Technology Group, ShivaSoft Inc., Synquest, and Thru-Put Technologies.


Configurators Are Increasing In Importance
Within the last two years, we have begun to hear more and more about the importance of flexibility. One area where flexibility is considered very important involves that of product configuration. Last year, in Orlando, a handful of packages focusing on product configuration were present. This year, this number has grown -- with companies such as Calico Technology and Catalyst Corporation (Wright Tools) exhibiting their configurator products.

I could go on with a discussion of the various themes observed at this year's exhibition. However, as we can see from this brief overview, this year's exhibit was a real success -- there was a true richness to it. If there is one message that we can gain from this year's exhibition, it is that software for manufacturing managers is alive, well and dynamic. That means that we can continue to expect good support from these and other vendors as we struggle with the challenge of surviving and thriving.

See you next year in Washington, D.C.

Click here to read a related sidebar story.