Supply chain management software is projected to be worth $19 billion by 2021, largely due to the widespread adoption of SaaS, Gartner reports. Businesses are adopting the software to increase visibility within their often-obscured supply chains and stay on top of complex order fulfillment and shipping. Meet the companies simplifying supply chain management with SaaS.
Inside the Supply Chain Management (SCM) Software Market
SCM software is comprised of three subcategories: Supply chain planning, supply chain execution, and procurement. Customers have leapt to the cloud for procurement solutions, while supply chain planning is trailing behind, in favor of on-premise solutions.
By 2021, Gartner predicts, on-premise licensing will account for less than 20 percent of SCM software spend. As the industry matures, existing solutions will consolidate, with new solutions addressing specific needs and challenges within the sector.
Global Leaders in SCM Software
SAP may be the global leader in SCM software, with $2.93 billion in earnings in 2016. The household name boasts Microsoft and Lennox among their clients. Their new IoT and Digital Supply Chain product uses the cloud to enhance collaboration among suppliers.
Oracle is the sector favorite for supply chain planning and modernization. The software company earned $1.5 billion from SCM software in 2016—a fraction of their total revenue.
Manhattan Associates was named to the "America’s 100 Most Trustworthy Companies" list and received the Top 100 Logistics IT Providers from 2014 through 2016. Its 2016 SCM revenue was $218.8 million, and they invested $55 million in R&D.
Leading the warehouse and transportation management sector, HighJump enjoyed $134.9 million in supply chain software sales in 2016. The company's end-to-end SCM software helps customers boost customer satisfaction and revenue. HighJump boasts customers in 66 countries, to date.
As ecommerce continues to grow, companies will invest more heavily in supply chain management software solutions that increase efficiency through analytics. IoT and smart machines are poised to drive the sector looking forward.
