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Logistics/Supply Chain/Approximate cost for implementing a control system for a supply chain?



I am reviewing from school the main control systems for logistics (EDI, VMI, CRP, ERP, ECR, CPFR). There are a couple of requests to obtain its characteristics and history for logistics, but there is no main issue with this information.

However, there is an optional request as to what is the price for each one of these... and that's my doubt, since I know that implies a wide range of answers depending on variables like the company size and the level of control that is required, the extra modules contained in each type of control, and some other considerations I might not have in mind. Besides, my practical experience in the logistics field is very limited.

So, if I took as a reference a standard company with basic needs on their chain control, could you give me a rough idea of ​​how much they would spend in each of these systems separately?

Hi Angel - Some of those modules that you mention are beyond the usual scope of supply chain. ERP for instance is a not usually included. Implementations to implement and homogenize ERP systems across fortune 500 companies can cost billions. Huge implementations are hardly ever beneficial to the company when looking at an NPV monetary analysis. Oftentimes however, the implementations must be done in order for the company to stay competitive.

Supply Chain software will usually cost less than the ERP software. The cost of the software will vary from tens of thousands to several million, depending on the provider, the modules, the level of integration, the licensing options and the level of support. Implementation costs also vary widely from a few hundred thousand to the tens of millions.

You will need to flesh out your Company X in order to find a ballpark cost estimate. What is the business case? Are they starting from nothing? Do they need to replace existing modules with new ones? What does their supply network look like? What kind of qty's move throughout their network? Do the products have special considerations, like environmental control? Do they contain hazardous materials? How are the logistics handled? What is the logistical situation for any international export/import? If you can send me a more fleshed out company and I will do my best to provide rough costs for each module.

To get a better idea of how this information is relevant, I would recommend that you read as many case studies as you have time for. Some case studies can be found via Google, like this Nike one:

Other case studies can be obtained by contacting software providers like SAP, Oracle, i2 and Logility. You can also contact consulting firms like IBM and D&T, Plan4Demand, and Oliver Wight and ask for any case studies that they may have available.

Again, if you can give more information about the company and the business case, I can provide much more information.


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Israel B. Bentch


I can answer questions about Supply Chain Planning; specifically in demand forecasting, inventory and supply management, promotions modeling, and manufacturing planning. My knowledge is greatest in the area of Manufacturing Planning. I have modeled many processes such as multi-echelon manufacturing, short shelf life finished goods manufacture, the manufacture of goods with extremely long lead times, raw materials consumption, and plant closures/openings. In addition, I can advise on various methods of manufacturing capacity planning and load leveling to minimize labor turnover. I have experience in demand forecasting as well. Specific issues on which I can advise are: optimal customer, item, and location groupings, modeling trend, seasonality, and variability, distribution center closures and openings, and historical sales realignments. In supply planning, I can provide recommendations for planning optimal inventory levels, master data requirements, distribution network modeling, and promotions integration. Finally, most of my experience has been modeling the above topics using the Logility software suite, MS Excel, and sometimes with custom software. I cannot answer questions related to procurement, transportation, 3PL management, cost/price management, or technical questions related to any software other than mentioned. Furthermore, I cannot comment on topics such as heuristics modeling, packaging issues, or international distribution.


I have been a private consultant working with supply chain management, providing expert business and technical services since 2000. I've advised and worked on projects covering everything listed in the "What kinds of questions can you answer" portion of this form. See below for a time-line. 2007-2010 - Contracting with Butterball, LLC. 20022007 - Contracting with ConAgra Foods, Grocery Division 20002002 - Contracting with ConAgra Foods, Refrigerated Division

Project Management Institute Veterans of Foreign Wars

National Louis University, Wheaton, IL MBA, Finance National Louis University, Wheaton, IL BS, Management Defense Language Institute, Monterey, CA Russian Studies and Linguistic Certification York College, York, NE AA, Liberal Arts

Awards and Honors
Scored top 1% in CAPSIM simulation as part of the MBA program at NLU.

Past/Present Clients
My primary client timeline is listed below. In addition to this, I also maintain a relationship with the supply chain consulting firm Plan 4 Demand as an adjunct consultant. 2007-2011 - Butterball, LLC. 20022007 - ConAgra Foods, Grocery Division 20002002 - ConAgra Foods, Refrigerated Division

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