Supply Chain Management Market By Component (Solution, Service), By Solution Type (Transportation Management System, Warehouse Management System, Supply Chain Planning, Procurement And Sourcing, Manufacturing Execution System), By Deployment Mode (On-Premise, On-Demand/Cloud-Based), By Industry Vertical (Retail And Consumer Goods, Healthcare And Pharmaceuticals, Manufacturing, Food And Beverages, Transportation And Logistics, Automotive, Others) And Region, Global Trends And Forecast From 2023 To 2030

Supply Chain Management Market Segmentation Analysis

The SCM market is segmented on the basis of by component, solution type, deployment model, 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. Depending on industry vertical, it is fragmented into retail & consumer goods, healthcare & pharmaceuticals, manufacturing, food & beverages, transportation & logistics, automotive, and other.

The worldwide market is divided into solutions and services based on component. The solution category is further broken down into the following subcategories: planning and analytics, warehousing and inventory management system, procurement and sourcing, and manufacturing execution system. During the forecast period, the solution segment, which had the biggest share in 2022, is anticipated to rule the market. Quality control, supplier management, and logistics management are all handled by SCM solutions. SCM systems provide advantages including improved visibility, efficiency, analytics, cost savings, enhanced agility, and increased compliance throughout the intricate supply chain. It helps automate complicated processes like order processing, billing, and order tracking, which saves time and money on administrative costs.

Professional services and managed services make up the second division of the service market. During the projection period, the service segment is anticipated to increase significantly at a CAGR. SCM services help businesses by enhancing their supply chains through data-driven insights. To find process inefficiencies and possibilities, the services provide real-time predictive production cost evaluation services. It efficiently implements data-driven operations, inventory, and sales planning to help in cost reduction.

The manufacturing sector, which had 26% of the market share in 2022, is estimated to dominate the target market throughout the projected period due to the rising requirement for supply chain automation in the manufacturing industry. By installing a robust SCM system, manufacturers may enhance their production processes and save operational expenses. For example, Logility, Inc. announced software developments in March 2022 to improve planning capabilities across the product lifecycle. Using supply chain network maps, manufacturing clients of Logility’s digital platform may examine the international connections of their integrated supply chain.

During the projected period, the retail and e-commerce segment is anticipated to have the greatest CAGR. E-commerce SCM focuses on acquiring raw materials, producing the product, and delivering it at the appropriate time. Supply and demand management, inventory control, order processing, and customer delivery are all included. SCM improves network transparency and aids in tracking the effectiveness of all manufacturing, storage, and distribution operations. This makes it possible to manage and trace all processes even more thoroughly, from procurement through the delivery of finished items to the end user. Additionally, efficient SCM guarantees on-time delivery, which directly affects customer relations. SCM based on e-commerce may significantly reduce production and delivery costs, increasing profitability.

Supply Chain Management Market Dynamics

Driver

The market for supply chain management (SCM) is growing as more SMEs adopt cloud-based supply chain management.

Modern organizations are heavily reliant on technology. While most startups and SMEs lack a functional IT department system on their own, major corporations have a dedicated IT department for managing and sustaining business operations. The rationale is that managing and sustaining an IT staff is more expensive. Therefore, the majority of SMEs and startups choose to use a cloud-based SCM system so they may benefit from an IT department’s services without having to hire more people or incurring additional expenses. This enables internal staff to concentrate on ongoing business activities. The scalability provided by the cloud-based SCM’s flexibility in storage is crucial for SMEs and will aid them in coping with unforeseen growth during the first year of operation. Additionally, cloud-based SCM provides SMEs with strong inventory management that is very responsive to current business trends. The cloud-based SCM system may also be used by SMEs to create business initiatives that increase sales and profitability. Considering the high rate of adoption by SMEs, the cloud SCM market is anticipated to expand throughout the course of the forecast period, creating enormous potential for cloud supply chain providers.

Restraint

SCM challenges are created by outsourcing manufacturing operations and procurement procedures to different geographic locations.

Businesses relocate manufacturing operations to nations with cheaper labor taxes and raw material shipping costs in an effort to reduce costs across the supply chain. Some businesses outsource production to numerous nations for various components of their products. The company’s buying network and outsourcing, however, expand the production process internationally. The supply chain is made more difficult by selecting providers in several regions. Concerning production, warehousing, and logistics, businesses must cooperate with cross-border partners and work together on these issues. Additionally, these parties prolong or maintain quick delivery times for consumers who wish to get their products on time, despite the manufacturer’s supply chain being more complex. As a result, there is a danger of losing visibility, control, and appropriate management of inventories, especially if business systems are not connected. To do this, one must manage several data structures. Due to different standards and practices in many countries, maintaining quality control and product uniformity becomes difficult. It is also more difficult to manage supplier relationships and enforce agreements across several locations. The visibility and traceability of the supply chain are weakened, making it challenging to follow items across the whole supply network. The danger of supply chain interruptions is increased due to this geographic dispersion, which highlights the importance of thorough contingency planning and risk mitigation techniques.

Opportunities

Due to advancements in communication and information technology, supply chain evolution is becoming more and more viable.

Currently, the use of SCM software in healthcare and pharmaceutical firms, as well as the rising need for management solutions among businesses, are anticipated to drive market expansion. In addition, the market for SCM software is anticipated to rise in the next years due to the surge in demand for transport management systems (TMS) software and the incorporation of blockchain technology. SCM solutions are made to foresee and handle upcoming difficulties using cutting-edge technologies like the Internet of Things, AI, robots, and 5G. Given its intricate nature and the pivotal function that supply chains and logistics (LSCM) have in enhancing overall business efficiency, big data analytics in LSCM has garnered significant interest. Companies across various sectors, such as finance, automotive manufacturing, healthcare, non-profit organizations, and others, are recognizing the importance of data and its potential benefits. Making the greatest use of Big Data analytics in a supply chain is increasingly important to produce deeper insights. The retail industry generates enormous amounts of data that are sent across its supply chains and at various omnichannel operations’ consumer touchpoints. As a result, the demand for supply chain management software is expected to increase significantly throughout the forecast period.

Supply Chain Management Market Trends

• The rise in popularity of cloud-based SCM systems can be attributed to their lower cost and simpler implementation when compared to on-premises SCM options.
• The usage of blockchain technology in SCM is expanding: The efficiency and transparency of the supply chain are being increased using blockchain technology. Blockchain may be used, to track a product’s movement through the supply chain and confirm its legitimacy.
• Predictive analytics’ growth in SCM Demand forecasting, potential disruption detection, and supply chain performance optimization are all made possible by predictive analytics.
• The significance of collaboration in the supply chain is rising: To increase the efficiency and visibility of the supply chain, businesses are working more and more closely with their suppliers and logistics providers.
• The development of artificial intelligence (AI) and machine learning (ML): AI and ML are being utilized in a number of ways to enhance SCM operations, including demand forecasting, inventory level optimization, and task automation.
• The expansion of e-commerce the desire for SCM solutions that are quicker and more adaptable is being driven by e-commerce. Companies are spending money on SCM solutions that can assist them in providing services like same-day delivery and omnichannel fulfilment to e-commerce clients.

Supply Chain Management Market Competitive Landscape

The competitive landscape of the supply chain management market was dynamic, with several prominent companies competing to provide innovative and advanced supply chain mnagement solutions.

1. SAP
2. Oracle
3. Infor
4. Descartes
5. Manhattan Associates
6. IBM
7. Logility
8. Kinaxis
9. Blue Yonder
10. Körber
11. Coupa
12. Epicor
13. BluJay
14. OMP
15. E2open
16. JAGGAER
17. Zycus
18. GEP
19. Tive
20. Calista

Recent Developments:

19 June 2023 : The implementation of next-generation AI, such as Adobe Sensei GenAI services and Adobe Firefly (currently in beta), Adobe’s family of creative generative AI models, will help brands successfully accelerate their content supply chains, according to plans announced by IBM and Adobe.

07 September 2023 : LeanIX is a pioneer in enterprise architecture management (EAM) software, and SAP SE and LeanIX GmbH recently announced that SAP has entered into an agreement to buy LeanIX. The anticipated purchase aids SAP in growing its business transformation product offering, providing clients with access to the whole toolkit needed for ongoing business transformation and enabling AI-enabled process optimisation.

Supply Chain Management Market Regional Analysis

North America accounted for the largest market in the supply chain management market. North America accounted for the 38 % market share of the global market value. While developing at a CAGR of 8.7%, North America is anticipated to have the largest share in the regional market. North America is expected to maintain its leadership throughout the projected period as a result of growing investments in transportation and logistics, which are encouraging the use of automating technology in supply chains and logistics. The diverse and very competitive transport and logistics sector in this region includes various sectors, including shipping, rail, and aviation services. As a consequence of elements like the digital revolution in the transportation industry, expanding urbanization, and worsening traffic congestion, there will probably be an increase in the usage of SCM solutions in transportation management. The main competitors in the supply chain management software market, such as Oracle Corporation, SAP SE, and JDA Software Group, Inc., are all well-represented in North America. To fulfil the rising need for sophisticated supply chain management services across industrial verticals, including transportation, automotive, and food & beverage, vendors in this market have developed cutting-edge SCM software. It is believed that this presents profitable potential for market expansion.

The forecast period is expected to have the greatest CAGR in Asia Pacific. The evolution of industrial verticals including BFSI, manufacturing, and logistics & transportation is largely to blame for the region’s prosperity. To meet the growing need for robust supply chain operations across various sectors, a number of significant regional suppliers are concentrating on creating and introducing innovative SCM systems. Demand for supply chain solutions is increasing as logistics facility development leads to better management and increased productivity. The rapid development of industry 4.0 and IoT is what is driving the SCM market in Europe. According to the Federal Statistical Office of Germany, 81.8% of major organization now use supply chain management systems as a result of the growing requirement for efficient production process management and the early adoption of automation.

Target Audience for Supply Chain Management

• Manufacturers and Production Managers
• Logistics and Distribution Managers
• Procurement and Sourcing Professionals
• Inventory Managers
• Supply Chain Analysts
• Retailers and Merchandisers
• Transportation and Freight Professionals
• Operations and Supply Chain Executives
• E-commerce and Online Retail Business Owners

Import & Export Data for Supply Chain Management Market

Exactitude consultancy provides import and export data for the recent years. It also offers insights on Packaging Formation and consumption volume of the Packaging Format. Understanding the import and export data is pivotal for any player in the Supply Chain Management market. This knowledge equips businesses with strategic advantages, such as:

1. Identifying emerging markets with untapped potential.
2. Adapting supply chain strategies to optimize cost-efficiency and market responsiveness.
3. Navigating competition by assessing major players’ trade dynamics.

Key insights

• Trade volume trends: our report dissects import and export data spanning the last five years to reveal crucial trends and growth patterns within the global Supply Chain Management Market. This data-driven exploration empowers readers with a deep understanding of the market’s trajectory.
• Market players: gain insights into the leading players driving the Supply Chain Management. From established giants to emerging contenders, our analysis highlights the key contributors to the import and export landscape.
• Geographical dynamics: delve into the geographical distribution of trade activities. Uncover which regions dominate exports and which ones hold the reins on imports, painting a comprehensive picture of the industry’s global footprint.
• Packaging Format breakdown: by segmenting data based on Supply Chain Management –– we provide a granular view of trade preferences and shifts, enabling businesses to align strategies with the evolving technological landscape.

Import and export data is crucial in reports as it offers insights into global market trends, identifies emerging opportunities, and informs supply chain management. By analyzing trade flows, businesses can make informed decisions, manage risks, and tailor strategies to changing demand. This data aids governments in policy formulation and trade negotiations, while investors use it to assess market potential. Moreover, import and export data contributes to economic indicators, influences Packaging Format innovation, and promotes transparency in international trade, making it an essential Storage Capacity for comprehensive and informed analyses.

Segments Covered in the Supply Chain Management Market Report

 Supply Chain Management Market by Component

• Solution
• Service

 Supply Chain Management Market by Solution Type     

• Transportation Management System
• Warehouse Management System
• Supply Chain Planning
• Procurement And Sourcing
• Manufacturing Execution System

Supply Chain Management Market by Deployment Mode         

• On-premise
• On-Demand/Cloud-Based

Supply Chain Management Market by Industry Vertical

• Retail and Consumer Goods
• Healthcare and Pharmaceuticals
• Manufacturing
• Food and Beverages
• Transportation and Logistics
• Automotive
• Others

 Supply Chain Management Market by Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

Key Question Answered

• What is the expected growth rate of the supply chain management market over the next 7 years?
• Who are the major players in the supply chain management market and what is their market share?
• What are the end-user industries driving market demand and what is their outlook?
• What are the opportunities for growth in emerging markets such as Asia-pacific, the middle east, and Africa?
• How is the economic environment affecting the supply chain management market, including factors such as interest rates, inflation, and exchange rates?
• What is the expected impact of government policies and regulations on the supply chain management market?
• What is the current and forecasted size and growth rate of the global supply chain management market?
• What are the key drivers of growth in the supply chain management market?
• Who are the major players in the market and what is their market share?
• What are the distribution channels and supply chain dynamics in the supply chain management market?
• What are the technological advancements and innovations in the supply chain management market and their impact on product development and growth?
• What are the regulatory considerations and their impact on the market?
• What are the challenges faced by players in the supply chain management market and how are they addressing these challenges?
• What are the opportunities for growth and expansion in the supply chain management market?
• What are the product products and specifications of leading players in the market?