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New York, May 15, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Supply Chain Management Software Market: Analysis By Deployment, By Region, Size and Trends with Impact of COVID-19 and Forecast up to 2028” – https://www.reportlinker.com/p06457202/?utm_source=GNW
It has enabled industries all over the world to streamline their operations while achieving the finest revenue returns. Supply chain management software is a real-time analytical platform that speeds up the movement of information and materials throughout the supply chain network. The program is intended to improve a company’s SCM processes and offer businesses with visibility into procurement, manufacturing, inventory, distribution, and retailing. Furthermore, supply chain management software can be customized and modified to meet the needs of the organization. Large retailers with many regional distribution centers, like Walmart, use supply chain management systems to coordinate between suppliers of merchandise (e.g., clothes, paper products) and Walmart’s retail stores to reduce inventory costs. This helps retailers like Walmart pass savings onto customers through lower prices for many everyday products. The backbone of many service operations is Supply Chain Management or SCM.
The market value is expected to grow at a CAGR of 10.63% during the forecast period of 2023-2028. The growing demand for real-time analysis and identification of complex patterns, development of industrial-grade digital technology, surge in need for improved supply chain transparency, as increase in inclination toward cloud-based supply chain management software well as the growing use of big data virtualization, are creating new growth opportunities for supply chain management software vendors. Improved performance, scalability, reliability, better problem solving, and real-time application are some of the key benefits of implementing supply chain management software solutions.
Market Segmentation Analysis:
By Deployment: The report provides the segmentation of supply chain management software based on the deployment: On Premise and Cloud. During the forecast period, the cloud-based segment is expected to grow at the fastest CAGR. Cloud computing and storage systems are becoming increasingly popular among small and medium-sized businesses. Several organizations are gradually transitioning to cloud infrastructure, and this trend is expected to accelerate in the coming years. The advantages of cloud infrastructure, such as ease of adoption, reduced reliance on in-house infrastructure, scalability, and simple installation, contribute to the segment’s rapid growth.
By Enterprise Size: The supply chain management software market is further bifurcated based on the enterprise size: Large Enterprises and Small and Medium Enterprises (SMEs). Large enterprises dominated the market in 2022. Large enterprises typically have more complex supply chains, with multiple suppliers and distribution networks spanning multiple countries and regions. As a result, they require SCM software solutions that offer robust features and functionalities for managing these complexities. The market’s rise is being driven by the demand for software in key industry verticals to assist in the collection of critical business data from various and different sources, such as inventory levels, predicted sales figures, supplier information, and others.
By Soultion: The report provides the bifurcation of the market into into five segments based on the solution: Manufacturing Execution System, Transportation Management System, Procurement and Sourcing, Warehouse Management System Management, and Supply Chain Planning. In 2022, the manufacturing execution system segment accounted for the largest share of the supply chain management software market. The growth of MES in the supply chain is driven by the need for real-time visibility and control over production processes. This allows manufacturers to improve production efficiency and reduce costs. The increasing adoption of automation and the rise of Industry 4.0 are also driving the growth of MES in the supply chain.
By Industry Vertical: The report provides the bifurcation of the market into seven segments based on the industry vertical: Manufacturing, Food & Beverages, Transportation & Logistics, Retail & E-commerce, Healthcare, Automotive, and Others. The retail & e-commerce segment is expected to grow with the highgest CAGR uring the forecasted period. The goal of retail and e-commerce supply chain management software is to assist these businesses in managing their whole supply chain, from the acquisition of raw materials to the distribution of finished goods to customers. Retailers can use the program to track consumer orders, manage their inventory, and guarantee delivery on time. The demand for better inventory management, the requirement for real-time insight into the supply chain, and the want for greater supplier and customer collaboration are the drivers influencing the adoption of supply chain management software in the retail and e-commerce sector.
By Region: The report provides insight into the supply chain management software market based on the geographical operations, namely North America, Europe, Asia Pacific, and ROW. The North American region held a dominant share in the supply chain management software market, owing to the factors such as increasing adoption of cloud-based technologies, which are enabling businesses to store and analyze large amounts of data more efficiently and cost-effectively. Additionally, there is a growth in the adoption of supply chain management software in the healthcare & pharmaceutical industries. With the compulsory implementation of GS1 standards & Unique Device Identification on pharmaceutical drugs and medical devices, the adoption of SCM software is increasing in the region.
During the forecast period, Asia-Pacific is anticipated to expand rapidly. This expansion is due to rapid industrialization and increased government spending. Companies in Asia-Pacific are increasingly adopting internet-based technologies, resulting in a rise in the region’s use of cloud-based SCM software. The region’s countries’ ever-increasing economic development, as well as the rising services sector, are encouraging business firms to make large investments in supply chain management software in order to sustain growth and improve productivity. Besides, there is an increased awareness among enterprises regarding the benefits of supply chain management solutions.
Growth Drivers: One of the most important factors impacting the global supply chain management software market is the growing E-commerce industry. The growth of the e-commerce industry has had a significant impact on the supply chain management software market. As more and more consumers turn to online shopping, businesses must adapt to keep up with the increasing demand. This has led to an increase in the need for efficient and streamlined supply chain management processes, which can be facilitated by software solutions. E-commerce service providers have set up warehouses to manage inventory and shipping. The introduction of supply chain management (SCM) software, such as WMS software, helps end users save time and improve the process of checking inventory and new shipments on a daily and monthly basis. Furthermore, the market has been growing over the past few years, due to factors such as growing demand for real-time visibility, adoption of SCM software in healthcare and pharmaceutical companies, growing need for demand management system, implementation of digitization in businesses, increasing adoption of cloud based supply chain management software and globalization.
Challenges: However, the market has been confronted with some challenges specifically, high initial cost and availability of open-source software, increase in security and privacy concerns, etc. Software licensing, installation, maintenance, hardware, customization, and training charges all contribute to the escalating costs of SCM software systems. The high cost of putting data collection devices in transportation vehicles and IT infrastructure overcomes the high cost of controlling and monitoring continuous transportation and logistics processes. As a result, numerous stakeholders are experiencing difficulties. Implementing SCM software, for example, necessitates the training of IT personnel in administrative and operational abilities. Once installed, the SCM solution must be continually updated in order to stay current with market trends and interact with modern technologies such as big data and blockchain. These elements raise the cost of installing and sustaining SCM solutions.
Trends: The market is projected to grow at a fast pace during the forecasted period, due to various latest trends such as integration of artificial intelligence (AI) in supply chain, adoption of big data analytics and IoT, advancements in industrial-grade digital technologies, increasing demand from aviation industry and inclination towards technological advancement and investments. Adoption of big data analytics and IoT is a key trend impacting the growth of the supply chain management software industry. End-user industries such as healthcare, retail, manufacturing, financial services, banking and insurance, education, transportation, SCM, logistics, and agriculture benefit from IoT and big data by analysing and improving operational efficiency. Big data analytics can help the SCM system manage the massive volume of data created by IoT devices. IoT, in conjunction with big data analytics, can assist businesses in increasing operational efficiency. Several logistics service companies have integrated big data and IoT into their supply chain management (SCM) platforms. Integrating digital twins and supply chain solutions reduces human involvement with systems through machine-to-machine communication, allowing for effective warehouse monitoring and administration. Increasing IoT and big data integration will have a favourable impact on market growth throughout the forecast period.
Impact Analysis of COVID-19 and Way Forward:
The COVID-19 pandemic has had a significant impact on the global economy, including the supply chain management software market. With the disruption caused by the pandemic, businesses have had to quickly adapt to the new normal, leading to changes in the demand and supply of goods and services, as well as a shift in consumer behavior. Due to the economic uncertainty caused by the pandemic, some businesses delayed or cancelled their software projects, leading to a temporary slowdown in the supply chain management software market. Indeed, according to the Institute for Supply Chain Management Organization in early 2020, nearly 75% of firms disclosed SCM disruptions. However, the things reversed during the second half of the pandemic as businesses resume their software projects.
The pandemic has highlighted the need for businesses to be more agile and responsive to changing market conditions, and one way to achieve this is through the adoption of automation and artificial intelligence. In the post-COVID world, it is expected that there would be an increased adoption of these technologies to streamline supply chain operations and reduce costs, which may drive supply chain management software market growth. Blockchain technology is increasingly being utilized to improve transparency, traceability, and security in supply chain management.
The global supply chain management software market is highly fragmented and constantly evolving. There are a variety of vendors in this market, ranging from large enterprise software providers to specialized niche players. Technological advancements in the market are also bringing sustainable competitive advantage to companies, and the market is witnessing multiple partnerships and mergers.
The key players in the global supply chain management software market are:
International Business Machines Corporation (IBM)
Descartes Systems Group Inc.
E2open Parent Holdings, Inc.
American Software, Inc. (Logility)
Infor Global Solutions Inc.
Coupa Software Inc.
Epicor Software Corporation
Blue Yonder Group, Inc.
O9 Solutions Inc.
SAP is currently the dominant player in the industry, with Oracle following closely behind. However, Oracle has recently made significant progress in the Cloud SCM market by offering a range of enhancements and accelerated go-live templates. These developments have appealed to a large number of net new customers, including many who recognize the strategic value of a unified Oracle cloud platform.
Read the full report: https://www.reportlinker.com/p06457202/?utm_source=GNW
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