Supply Chain Management Software Market Statistics | 2030 (2022)

Supply Chain Management Market Statistics: 2030

The supply chain management market was valued at $18,699.45 million in 2020, and is projected to reach $52,632.37 million by 2030, registering a CAGR of 10.7%. Advancements in industrial-grade digital technology, increase in inclination toward cloud-based supply chain management software, and rise in need for improved supply chain visibility majorly contribute toward the supply chain management market growth. However, lack of IT infrastructure in the underdeveloped nations and increase in security & privacy concerns hamper the growth of the supply chain management software market.

The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. This is attributed to the rapid growth in demand for SCM software due to supply chain disruptions triggered by the COVID-19 pandemic. In addition, there is huge demand for online shopping in several areas, which requires food & beverage, manufacturing, and logistics companies to increase their investments in automation, including the automation of supply chains. Thus, fueling the growth of the SCM industry.

In 2020, the supply chain management market share was dominated by the Procurement and sourcing segment, and is expected to maintain this trend during the forecast period. The major role of procurement & sourcing is to obtain supplies at the lowest possible price. Sourcing mainly focuses on lowering prices, improving quality, and achieving efficiencies on a regional as well as global level. While procurement refers to the mechanics of purchasing, which includes making timely payments and filling out order forms. However, the transportation management system segment is expected to witness the highest growth. The digital revolution is changing the landscape of the transportation business, due to which number of transportation management system vendors and third-party providers are adopting digitized systems for supply chain management and transportation activities, which is positively impacting the growth of the SCM industry.

Supply Chain Management Software Market Statistics | 2030 (1)

The on-premise segment led the supply chain management market in 2020, and is expected to continue to remain dominant in the near future. On-premise based supply chain management solution allows organizations to have control over security & other connectivity issues and improves the scalability, speed, reliability, and connectivity of organizations. However, cloud-based SCM software is expected to witness highest growth rate, due to rise in adoption of cloud-based SCM software in small- & medium-sized enterprises.

By user type, the large enterprises segment dominated the supply chain management market in 2020, and is expected to continue this trend during the forecast period, owing to increase in adoption of SCM software to integrate these software into their existing software and inventories. Furthermore, the small & medium-sized enterprises segment is expected to grow at the highest CAGR during the forecast period, owing to surge in adoption of cloud-based SCM software, as it provides cost-effective and efficient solution for SMEs.

The global supply chain management market was led by the retail & consumer goods segment in 2020, and is projected to maintain its dominance during the forecast period due to rise in adoption of SCM software among retailers to gain competitive advantage, due to rise in competition between e-commerce and Omni channel players. However, the automotive segment is expected to witness the highest growth during the forecast period.

The report focuses on the growth prospects, restraints, and global supply chain management market analysis. The study provides Porter’s five forces analysis of the global SCM market forecast to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global supply chain management market trends.

(Video) Top 10 Supply Chain Management (SCM) Systems | Best SCM Systems | SCM Software Ranking

Segment Review

The supply chain management market is segmented into component, solution type, deployment model, user type, industry vertical, and region. By component, the market is bifurcated into solution and services.

By solution type, it is classified into transportation management system, warehouse management system, supply chain planning, sourcing & procurement software, and manufacturing execution system. By deployment model, the market is divided into on-premise and cloud based. By user type, it is bifurcated into small & medium-sized enterprises (SMEs) and large enterprises. Depending on industry vertical, it is fragmented into retail & consumer goods, healthcare & pharmaceuticals, manufacturing, food & beverages, transportation & logistics, automotive, and other. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

COVID-19 Impact Analysis

Post COVID-19, the size of the supply chain management (SCM) market is estimated to grow from $18,699.45 million in 2020 and projected to reach $52,632.37 million by 2030, at a CAGR of 10.7%. The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. This is attributed to the rapid growth in demand for SCM software due to supply chain disruptions triggered by the COVID-19 pandemic. In addition, there is huge demand for online shopping in several areas, which requires food & beverage, manufacturing, and logistics companies to increase their investments in automation, including theautomation of supply chains. Thus, fueling the growth of the SCM industry.

Supply Chain Management Market By Component

Your browser does not support the canvas element.

Services segment is projected as one of the most lucrative segments.

Get more information on this report : Request Sample Pages

(Video) Supply Chain Management Market Share, Size, Sale and Demand Scenario Forecast 2030

Due to this outbreak, number of industries are affected and maintaining the complex supply chain networks would be difficult for them, which is expected to drive the demand for SCM software. For instance, according to a survey conducted by "Institute for Supply Chain Management Organization" in March 2020, almost 75% of the companies reported global SCM disruptions in one form or other due to the corona virus related transportation restrictions and it is further expected to increase in the upcoming few weeks.

Top impacting factors

The growth of the global supply chain management market size is driven by development of industrial-grade digital technology, surge in need for improved supply chain visibility, and increase in inclination toward cloud-based supply chain management software. Moreover, surge in need of demand management solutions among enterprises and increase in adoption of SCM software in healthcare and pharmaceutical companies further boosts the growth of the market. However, high cost associated with the implementation and maintenance of SCM solution and increase in security & privacy concerns among enterprises are expected to impede the supply chain management market growth. On the contrary, upsurge in demand for transportation management systems (TMS) software and integration of blockchain technology in SCM software are expected to present major opportunities for market expansion in the near future.

Supply Chain Management Market By Solution Type

Your browser does not support the canvas element.

Transportation management system segment is projected as one of the most lucrative segments.

Get more information on this report : Request Sample Pages

(Video) VET | Will ToolChain BAAS Transform Supply Chain Management in $55 Trillion Market?

Surge in need for improved supply chain visibility

Supply chain management allows supply chain manager to monitor exactly where their current operations performing or underperforming, so that they can be prepared for minor problems, and redirect resources for the significant outcomes. In addition, it generates data-driven, reliable solutions. Which can be used to make improvements in efficiency of business operations. , supply chain management software provides better visibility to organizations with a cross-functional access and offers exception-based process management platforms that enable staff to micro-manage steady-state processes. This fuels the adoption of supply chain management software among the end users. Moreover, Increase in need of improve supply chain visibility and the desire for better transparency of orders and shipment information further boost the growth of the market.

Upsurge in demand for transportation management systems (TMS) software

Transportation in a supply chain refers to the movement of products from one location to another, which begins at the start of the supply chain as materials make their way to the warehouse and continues all the way to the end user with the customer’s order delivered at the doorstep. Because of the importance of transportation, warehouse managers should examine transportation within their supply chains. Ultimately, this is the only way to achieve lower total costs for a model where transportation can account for as much as 60 percent of total operational costs, a significant portion of a company's supply chain costs. Transportation management system is used to plan the movement of freight and help customers to plan and execute transportation activities efficiently across the supply chain. Over a period of time, the demand for TMS software has been witnessed to increase, which is creating numerous opportunities for the supply chain management market. The use of intelligent wireless connectivity and smart sensor technology solutions to offer real-time information to organizations about transport vehicles is increasing.

Supply Chain Management Market By Region

Asia-Pacific is projected as one of the most significant region.

Get more information on this report : Request Sample Pages

Key Benefits For Stakeholders

(Video) Digi-Key Presents: Supply Chain Transformed - Next Generation Production

  • This study includes the global supply chain management market analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and global supply chain management industry opportunity.
  • The global supply chain management market size is quantitatively analyzed from 2020 to 2030 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in global supply chain management industry.

Supply Chain Management Market Report Highlights

Segments Sub-segments
By Component
  • Solution
  • Services
By Solution Type
  • Transportation Management System
  • Warehouse Management System
  • Sourcing & Procurement
  • Supply Chain Planning
  • Manufacturing Execution System
BY DEPLOYMENT MODEL
  • ON-PREMISE
  • ON-DEMAND/CLOUD-BASED
By User Type
  • Small & Medium Sized Enterprises
  • Large Enterprises
BY INDUSTRY VERTICAL
  • Retail & Consumer Goods
  • Healthcare & Pharmaceuticals
  • Manufacturing
  • Food & Beverages
  • Transportation & Logistics
  • Automotive
  • Other
By Region
  • North America (U.S., Canada)
  • Europe (UK, Germany, France, Russia, Italy, Rest of Europe)
  • Asia-Pacific (.China, India, Japan, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA (Latin America, Middle East, Africa)
Key Market Players EPICOR SOFTWARE CORPORATION, HIGHJUMP, INFOR, INTERNATIONAL BUSINESS MACHINES CORPORATION, JDA SOFTWARE GROUP, INC., KINAXIS INC., MANHATTAN ASSOCIATES, ORACLE CORPORATION, SAP SE, THE DESCARTES SYSTEMS GROUP INC.

FAQs

How is statistics used in supply chain management? ›

Supply chain statistics allow analysts to access vast data sets and create proactive strategies using real-time insights. This data can be used to enhance operational efficiency and therefore, reduce overall costs.

What software is used in supply chain management? ›

What are the Top Supply Chain Management Software: E2open, SAP SCM, Logility, Perfect Commerce, Oracle SCM, Infor SCM, JDA SCM, Manhattan SCM, Epicor SCM, Dassault Systemes SCM, Descartes SCM, Highjump SCM, IFS, Watson Supply Chain, BluJay SCM are some of the examples of best Supply Chain Management Software.

How big is the supply chain management industry? ›

How big is the supply chain management market? b. The global supply chain management market size was estimated at USD 16.64 billion in 2021 and is expected to reach USD 18.27 billion in 2022.

How large annual growth rate is the SCM enterprise software market? ›

NEW YORK, June 27, 2022 /PRNewswire/ -- According to the research report "Supply Chain Management Software Market by Deployment, Application, and Geography - Forecast and Analysis," the market witnessed a YOY growth of 7.23% in 2021 at a CAGR of 11% during the forecast period.

Which company has best supply chain? ›

The Gartner Supply Chain Top 25 Companies for 2022
RankCompany
1Cisco Systems
2Schneider Electric
3Colgate-Palmolive
4Johnson & Johnson
21 more rows
26 May 2022

Are supply chains improving 2022? ›

Between December 2021 and March 2022, the index registered an easing of global supply chain pressures, though they remained at very high levels historically. However, the April 2022 reading suggests a worsening of conditions as renewed strains emerge in global supply chains.

What is supply chain data analytics? ›

Supply chain analytics refers to the processes organizations use to gain insight and extract value from the large amounts of data associated with the procurement, processing and distribution of goods.

How is statistics used in logistics? ›

Statistics can be beneficial in analyzing and interpreting the previous data and make the necessary conclusions regarding purchasing trends, market value and delivery costs.

Is SCM part of ERP? ›

Supply chain management is an integral part of ERP solutions. Within the manufacturing industry, there is the need to interact with suppliers regarding the raw materials and resources needed to ensure the finished product reaches the consumer.

Why is supply chain management software important? ›

Advantages of using supply chain management software

help control and reduce costs. alleviate risks, such as late shipments and logistical errors. improve customer service and communication. help with forecasting and decision-making.

What software is used in logistics? ›

Best logistics industry software used in the market is Loginext Mile, OptimoRoute, Ramco Logistics, Track-POD, and TruckLinks. Such system tools take care of the entire logistics channel and ensure there is no bottleneck situation in the smooth transport of goods.

What is the growth rate in supply chain management? ›

Post COVID-19, the size of the supply chain management (SCM) market is estimated to grow from $18,699.45 million in 2020 and projected to reach $52,632.37 million by 2030, at a CAGR of 10.7%. The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates.

Why is supply chain management growing? ›

An increase in advancements in industrial-grade digital technology, an increase in preference toward cloud-based supply chain management software, and the demand for enhanced supply chain visibility are driving the Supply Chain Management (SCM) Market.

What are the 5 areas of SCM and briefly explain each? ›

Supply management is made up of five areas: supply planning, production planning, inventory planning, capacity planning, and distribution planning. Supply planning determines how best to fulfill the requirements created from the demand plan.

What is SAP supply chain? ›

SAP SCM is an SAP-integrated, supply chain software that increases business agility to effectively respond to changes in market demands. It allows organizations to plan and execute logistics within supply networks and to perform workflow management.

What is Oracle Cloud SCM? ›

Oracle Supply Chain Management (SCM) With Oracle Supply Chain Management (SCM) & Manufacturing, organizations can respond quickly to changing demand, supply, and market conditions. Seamlessly connect your supply chain to create a resilient network and process built to outpace change.

What is software supply chain security? ›

Software supply chain security helps organizations detect, identify, analyze, and mitigate risks associated with the digital artifacts that enter their software via third parties like open source libraries, commercial software vendors, or outsourced development.

Is Amazon a supply chain company? ›

Though several factors make Amazon the eCommerce leader it is today, one of the most critical elements to its success has been Amazon's state-of-the-art supply chain. Amazon has one of the biggest and most efficient supply chain operations globally.

Which company has a global supply chain? ›

Schneider Electric, a global specialist in energy management and automation, operates a diverse supply chain in more than 100 countries.

What companies use an agile supply chain? ›

For instance, H&M, Mango, and Zara have become Europe's most profitable apparel brands by building agility into every link of their supply chains. At one end of their product pipelines, the three companies have created agile design processes.

What are the biggest challenges in supply chain? ›

Here are five major challenges that companies continue to face in their supply chains–and the solutions that will help logistics providers prepare for the future.
  • 1 - Huge E-commerce Growth. ...
  • 2 - Sudden Shortages. ...
  • 3 - Centralized Inventory. ...
  • 4 - Limited or Insufficient Visibility. ...
  • 5 - Patchwork Logistics.
3 May 2022

What is going on with supply chain 2022? ›

In 2022 businesses around the world are trying to de-globalize their supply chains. Some of this change reflects the vulnerability of long supply chains to disruptions. That's generally true, as illustrated by the Russia-Ukraine war and Covid-19 lockdowns.

What broke the supply chain? ›

Rampant outsourcing, financialization, monopolization, deregulation, and just-in-time logistics are the culprits. This article appears in The American Prospect magazine's February 2022 special issue, “How We Broke the Supply Chain.” Subscribe here.

How big data improve supply chain? ›

Big data combines past sales trends with predictive technology to provide inventory managers with guides on just how much to expect. This helps to cut costs significantly so that the supply chain can order enough supplies to stock the shelves without ordering too much and potentially wasting products.

How data is collected in supply chain? ›

When you collect data, you collect data from three categories: reference data, demand data, and supply data. On the Collect Planning Data page there is a tab for each of these categories. The collected data are stored in the planning data repository.

How do you analyze a company's supply chain? ›

5 Steps to a Supply Chain Market Analysis
  1. Define your objectives, scope, and commodity profile. ...
  2. Research the market and pricing structure for your commodity. ...
  3. Conduct in-depth supplier analysis. ...
  4. Identify key market indicators. ...
  5. Compile your findings and outline final recommendations.
11 Sept 2019

What is the importance of statistics in procurement? ›

Collecting accurate data in a usable form is necessary to solve procurement problems, avoid departmental issues, or realize how to capitalize on more value from your procurement methods. More than ever, organizations need actionable insights from their data to enhance performance in each part of the company.

Why ERP and SCM does not overlap? ›

SCM deals more with relationships, whereas ERP transactions are more task-based. Additionally, there is some overlap between ERP and SCM solutions, with many features and functions available in both. For instance, you will sometimes find an SCM module in ERP software.

What is the difference between SCM and CRM? ›

CRM platforms track customer interactions, whereas SCM platforms track materials and product shipments. Tech buyers should know how these platforms differ before making a purchase. While CRM platforms can help organizations drive sales, a supply chain management platform helps land those sales.

Is SAP an ERP system? ›

SAP S/4HANA Cloud is a future-ready enterprise resource planning (ERP) system with built-in intelligent technologies, including AI, machine learning, and advanced analytics.

What are the common advantages of tool based SCM? ›

9 Benefits of SCM Software That Will Boost Your Profits
  • Benefits of SCM software: Improved financial flow. Costs reduction. ...
  • Improved product flow. Improved product quality. ...
  • Improved collaboration flow. Improved collaboration.
25 Dec 2019

How has technology impacted supply chain management? ›

Technology reduces labor costs by streamlining data-capture and reducing error-prone manual processes. Access to real-time, up-to-date information across the entire supply chain is having a significant impact on how companies are doing, and expect to do business.

How does a computer software improve the supply chain management? ›

Improve customer service and communication

SCM software allows not only to improve communication with your customers but also within your company, this enhances the processes within them and improves productivity, which in one way or another increases collaboration between your team.

What is SAP for logistics? ›

One of the most popular logistics management systems is SAP, an all-inclusive logistics software that centralized logistics data management into one system. This can help a company bring together all aspects of logistics management into one system that all departments can access in real-time SAP Logistics Management.

Is Amazon a 3PL? ›

This third-party logistics provider (3PL)service allows other businesses to utilize Amazon's massive infrastructure to provide ecommerce fulfillment for their own customers. Amazon is the largest third-party logistics providers (3PL) company in the world.

Which SAP module is best for logistics? ›

With over 5,000 production system installations, SAP LES (SAP Logistics Execution System) is the most commonly-used software suite for warehouse management and control worldwide.

What is supply chain overview? ›

A supply chain is the network of individuals, companies, resources, activities, and technologies used to make and sell a product or service. A supply chain starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer.

What do you mean by global supply chain management? ›

Global Supply Chain Management (GSCM) is the science of planning how the distribution of goods and services will make it from manufacturer to consumer. Global supply chain management is one of the most important disciplines in 21st century business.

How many people are employed in supply chain? ›

The U.S. supply chain contains 37% of all jobs, employing 44 million people. These jobs have significantly higher than average wages, and account for much of the innovative activity in the economy.

Is SCM a good career? ›

In fact, on a scale from 1 to 10, 88% have a positive outlook on their careers and would recommend supply chain as a rewarding professional path to others. In addition, 45% of industry professionals enjoy four weeks or more paid time off.

Is MBA in supply chain management worth it? ›

Financially, the answer is a resounding yes. Graduates from top-ranked Master of Supply Chain Management programs can expect to command impressive salaries, which means you can recoup your initial investment in a relatively short space of time.

Is supply chain management hard? ›

Supply chain and logistics management is a demanding career. But it's also one of the most exciting areas of growth for hungry, driven professionals who are looking to make a real impact in their jobs.

What are the 7 key issues of supply chain management? ›

The following are the 7 most important objectives of Supply Chain Management.
  • Improving Efficiency. ...
  • Improving Quality. ...
  • Optimising Transportation and Logistics. ...
  • Reducing Costs. ...
  • Enhancing Customer Satisfaction. ...
  • Improving Distribution. ...
  • Maintaining Better Coordination.

What are the top 3 elements of supply chain? ›

Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery).

What are the four 4 stages of supply chains? ›

What are the components of your supply chain you should be focusing on right now?
  • INTEGRATION. Integration starts at your strategic planning phase and is critical throughout your communications and information sharing and data analysis and storage. ...
  • OPERATIONS. ...
  • PURCHASING. ...
  • DISTRIBUTION.

Which company is famous for its supply chain planning and S&OP tools? ›

ChainSequence®, Inc., a Supply Chain and Sales & Operations Planning (S&OP) consulting company, was recognized as one of the “Best Performing SCM Companies in 2019” by CIO Look magazine.

Do software companies have supply chain? ›

As with any industry that produces and/or moves products, tech companies all have their supply chains.

What is Oracle supply chain management? ›

Oracle Supply Chain Management (SCM) With Oracle Supply Chain Management (SCM) & Manufacturing, organizations can respond quickly to changing demand, supply, and market conditions. Seamlessly connect your supply chain to create a resilient network and process built to outpace change.

What company is an example of supply chaining? ›

For efficient supply chains, Amazon is the company that first comes to mind for many people. Amazon is one of the largest internet-based retailers in the world, with the headquarters in Seattle Washington, Amazon also currently operates from thirty other country-specific sites.

What is Gartner supply chain? ›

About us. Gartner for Supply Chain helps chief supply chain officers (CSCOs) and their leadership teams gain a strategic view of the trends disrupting their business. Gartner provides the powerful insights you need to explore new ways to approach your mission critical challenges and achieve greater impact as a leader.

What is JDA supply chain? ›

About JDA - The Supply Chain Company

Edit. JDA Software is the leading supply chain provider powering today's digital transformation. We help companies optimize delivery to customers by enabling them to predict and shape demand, fulfill faster and more intelligently, and improve customer experiences and loyalty.

Is Amazon a supply chain company? ›

Though several factors make Amazon the eCommerce leader it is today, one of the most critical elements to its success has been Amazon's state-of-the-art supply chain. Amazon has one of the biggest and most efficient supply chain operations globally.

What are software supply chain risks? ›

Attack vectors for software supply chains are the various ways in which someone can intentionally or accidentally compromise your software. Risks of vulnerable software include leaking credentials or confidential data, corruption of data, installation of malware, and application outages.

Who are the suppliers in the software industry? ›

SCM (SCE, SCP, Procurement) Total Software Revenue
No.Supplier2018 Revenue
1SAP3,789.7
2Oracle1,716.7
3JDA Software781.1
4Infor Global Solutions318.1
20 more rows
15 Jul 2019

How does supply chain optimization software work? ›

It involves the application of processes and tools to ensure the optimal operation of a manufacturing and distribution supply chain. This includes the optimal placement of inventory within the supply chain, minimizing operating costs including manufacturing costs, transportation costs, and distribution costs.

Which is better Oracle SCM or SAP SCM? ›

SAP has better event management, giving you greater insight and supply chain visibility. But Oracle has better APS, allowing you to better track costs and allocate resources more efficiently. Winner: SAP and Oracle are tied for supply chain management capabilities.

Is SCM part of ERP? ›

Supply chain management is an integral part of ERP solutions. Within the manufacturing industry, there is the need to interact with suppliers regarding the raw materials and resources needed to ensure the finished product reaches the consumer.

Who uses Oracle SCM? ›

Companies using Oracle Cloud SCM for Supply Chain Management include: AT&T Inc., a United States based Communications organisation with 203160 employees and revenues of $163.03 billion, Facebook, Inc., a United States based Professional Services organisation with 71970 employees and revenues of $118.00 billion, FedEx ...

What are the Triple A's in supply chain management? ›

Purpose. In 2004 Lee proposed that successful supply chains must be agile, adaptable, and aligned and described those chains as “Triple‐A” supply chains.

What are the 7 supply chain functions? ›

The functions of a supply chain include product development, marketing, operations, distribution, finance, and customer service. Today, many supply chains are global in scale. Effective supply chain management results in lower costs and a faster production cycle.

What is Apple's supply chain? ›

How does Apple run its supply chain operations? In a nutshell, Apple purchases components and materials from various suppliers, then gets them shipped to the assembling plant in China. From there, products are shipped directly to consumers (via UPS/Fedex) who bought from Apple's Online Store.

Videos

1. Roadmap: Supply Chain SaaS
(Bessemer Venture Partners)
2. Operations Management using Excel: Seasonality and Trend Forecasting
(Excel & Analytics - Dr. Mustafa Canbolat)
3. Chapter 2 - Supply Market Research by Procure Tribe
(Procure Tribe Training Videos )
4. Ralph Asher & Laura Darby Rose | R in Supply Chain Management | RStudio
(RStudio)
5. Introduction to Supply Chain Management
(Supply Chain Analytics)
6. Chapter 2: Supply chain performance - Measuring performance in supply chains
(Windesheim)

Top Articles

Latest Posts

Article information

Author: Ms. Lucile Johns

Last Updated: 12/15/2022

Views: 5267

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Ms. Lucile Johns

Birthday: 1999-11-16

Address: Suite 237 56046 Walsh Coves, West Enid, VT 46557

Phone: +59115435987187

Job: Education Supervisor

Hobby: Genealogy, Stone skipping, Skydiving, Nordic skating, Couponing, Coloring, Gardening

Introduction: My name is Ms. Lucile Johns, I am a successful, friendly, friendly, homely, adventurous, handsome, delightful person who loves writing and wants to share my knowledge and understanding with you.