[188 Pages Report] The Supply Chain Management Market size was estimated at USD 32.42 billion in 2023 and expected to reach USD 35.31 billion in 2024, at a CAGR 9.24% to reach USD 60.21 billion by 2030.
Supply chain management (SCM) is a multidisciplinary approach that systematically manages the flow of information, goods, and finances as they move from supplier to manufacturer to retailer and finally to the consumer. The objective of SCM is to enhance organizational efficiency and profitability by optimizing the production process, minimizing costs, and delivering the right product at the right time to the right place. Supply chain management encompasses the planning and management of all essential activities involved in sourcing, procurement, conversion, and logistics management. The supply chain management market is growing rapidly with global business outreach and the escalating expectations of e-commerce consumers for swift deliveries. The supply chain management market faces hurdles such as intricate software integrations, supply chain volatility, requisite expertise for data handling, and stringent regulatory adherence. However, the recent leveraging of advanced technologies such as blockchain, AI, IoT, and predictive analytics presents a revamp of traditional supply chains into more adaptable and scalable frameworks, creating lucrative opportunities for the global supply chain management market.
Hardware is the backbone of supply chain operations, providing key physical tools and devices for warehouse management, transportation, and inventory tracking. Hardware includes RFID systems, barcode scanners, GPS tracking, and material handling equipment. The need for automation, data accuracy, and real-time tracking of goods drives the preference for particular hardware. Larger organizations often prioritize state-of-the-art equipment to streamline operations. Services cover consultation, implementation, maintenance, and training for various SCM systems. Clients may prefer services that offer custom solutions, integrative capability with existing infrastructure, and scalability to cope with market changes. Proper installation of equipment and infrastructure is essential for an agile supply chain. From warehouse management systems to conveyor belts, each component must be installed with precision to ensure smooth operations. The personnel involved must be proficient in current technologies and methodologies for a supply chain to function effectively. Training and education programs equip staff with the necessary skills to navigate complex supply chain environments. Solutions generally refer to integrated software systems that manage various supply chain aspects. Businesses may prefer customizable, user-friendly solutions with robust analytics, forecasting, and comprehensive management capabilities. In comparison, hardware is about the tangible assets and the immediate impact on operational efficiency, and the need for robust, long-lasting equipment often determines its selection. Services are typically engaged for expert knowledge and the need for continuous improvement and optimization of supply chain processes. Solutions, predominantly software, are chosen with scalability and integration in mind, providing a comprehensive overview and control over the entire supply chain.
Manufacturing/operations systems are at the core of producing goods and directly influence the ability of a company to meet customer demand. They integrate processes related to production planning, manufacturing, and product delivery, ensuring that manufacturing operations align with supply chain outputs. Procurement sourcing/purchasing is pivotal in ensuring raw materials and services are acquired at the best possible terms and involves supplier management, contract negotiation, and purchasing order management. Supply chain planning comprises the strategies and tools used in forecasting, demand planning, and inventory optimization to balance supply and demand effectively. A transportation management system manages the shipping process from planning and optimization to freight auditing and payment. It facilitates carriers' selection, route planning, and the real-time tracking of goods. A warehouse management system is software that offers visibility into a business's inventory while managing supply chain fulfillment operations from the distribution center to the store shelf. It involves inventory management, picking processes, and auditing.
On-cloud or cloud-based solutions refer to supply chain management (SCM) applications hosted on the provider's remote servers and accessed over the Internet. The service is typically provided on a subscription basis, known as Software-as-a-Service (SaaS). On-premise solutions are the hosted on a company's servers and managed by internal IT staff. The software is typically purchased through a license agreement and resides within the company's local network. On-cloud arrangements offer lower upfront costs and high operational agility, albeit with provider-dependent security; on-premise setups afford superior customization and data sovereignty at higher initial expenses and hands-on maintenance. In recent developments, both deployment strategies have evolved, with on-cloud providers integrating AI for smarter forecasting and resilience and on-premise solutions advancing through warehouse automation enhancements.
Large enterprises generally have complex supply chains that span across multiple regions. They often require robust and sophisticated supply chain management (SCM) systems to manage their extended operations.
Small and medium enterprises (SMEs) are typically more agile but may need more resources for significant capital investments in SCM software. Therefore, they often prefer cost-effective, scalable solutions that can grow with their business. While both large enterprises and SMEs aim for efficiency and cost-saving in their supply chains, the scale and complexity of their solution requirements differ significantly. Large enterprises prioritize integration, compliance, and global reach, often necessitating custom solutions offered by major manufacturers. In contrast, SMEs favor affordability, user-friendliness, and scalability, which specialized providers are more equipped to deliver.
The supply chain management market in the Americas has shown robust growth with ongoing investments in technology, particularly in automation and digital transformation of industries, including supply chain. The EMEA region is experiencing a transformation within the supply chain sector. The region is adapting SCM through increased adoption of sustainability practices due to regulatory mandates and a shift toward localized supply chains. Additionally, the rise in e-commerce is restructuring traditional supply chain models, with companies focusing on reducing delivery times and improving customer service, raising the demand for supply chain management in the region. Asia-Pacific holds significant potential for growth in the supply chain management market. The region's expanding manufacturing capabilities, combined with an increase in consumer demand, require robust and sophisticated supply chain solutions. Technology adoption, especially in AI and data analytics, continues to bolster efficiency and competitiveness despite challenges such as geopolitical risks and natural disasters in the region.
The FPNV Positioning Matrix is pivotal in evaluating the Supply Chain Management Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Supply Chain Management Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Accenture Expands Partnership with SAP to Help Clients Establish Responsible and Resilient Supply Chains
Accenture has revealed a strategic alliance with SAP SE, aiming to transform supply chain management through the creation of an advanced supply chain nerve center. This center offers a robust platform for reducing risks, amplifying visibility, and fostering sustainability within organizational operations. Building upon the capabilities of SAP® Integrated Business Planning for Supply Chain (SAP IBP), the collaboration seeks to introduce innovative enhancements that empower organizations to adapt swiftly and economically to variations in supply, demand, and inventory levels. The integration of cutting-edge technologies such as cloud solutions, data analytics, artificial intelligence (AI), and machine learning would ensure multilayer supplier transparency, propelling businesses towards more insightful and strategic decision-making. [Published On: 2023-11-28]
AWS Announces Four New Capabilities for AWS Supply Chain
Amazon Web Services (AWS) is enhancing supply chain efficiency and resilience with its cutting-edge solutions. The AWS Supply Chain Supply Planning module leverages sophisticated predictive models to accurately anticipate the need for raw materials and products, which in turn facilitates optimal in-stock levels throughout customer supply chains. Offering another layer of precision, AWS Supply Chain N-Tier Visibility empowers businesses to disseminate forecasts and solidify orders across various supplier layers, leading to more precise planning and operational workflows. [Published On: 2023-11-08]
ServiceNow Launches Digital Workflows for Finance and Supply Chain
ServiceNow has expanded its suite of enterprise applications by introducing innovative AI-enabled workflows tailored to the unique demands of finance, supply chain, and procurement sectors. This development is particularly beneficial for CFOs and executives who are seeking to streamline operations through digitization. The integration of these new workflows signifies an essential stride in helping organizations simplify complexities and enhance productivity at an enterprise-wide level. [Published On: 2023-05-16]
The report delves into recent significant developments in the Supply Chain Management Market, highlighting leading vendors and their innovative profiles. These include Amazon Web Services, Inc., American Software, Inc., Berkshire Grey, Inc., Blue Yonder, Inc., Coupa Software Inc., Epicor Software Corporation, GEP, HighJump, Infor Inc., Intel Corporation, International Business Machines Corporation, JAGGAER, LLC, Kinaxis Inc., Korber AG, Kuehne + Nagel International AG, Logility, Inc., Manhattan Associates, Inc., Micron Technology, Inc., Microsoft Corporation, NVIDIA Corporation, OM Partners N.V., Oracle Corporation, RELEX Solutions, SAP SE, Splice Machine, Inc., and The Descartes Systems Group Inc..
This research report categorizes the Supply Chain Management Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Component
- Hardware
- Services
- Installation & Maintenance
- Training & Education
- Solution
- Function
- Manufacturing/Operations System
- Procurement Sourcing/Purchasing
- Supply Chain Planning
- Transportation Management System
- Warehouse Management System
- Deployment
- On-Cloud
- On-Premise
- Organization Size
- Large Enterprises
- Small & Medium Enterprises
- Industry
- Automotive
- Food & Beverages
- Healthcare & Pharmaceuticals
- Manufacturing
- Retail & Consumer Goods
- Transportation & Logistics
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
- Market Penetration: It presents comprehensive information on the market provided by key players.
- Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
- Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
- Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
- Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
- What is the market size and forecast of the Supply Chain Management Market?
- Which products, segments, applications, and areas should one consider investing in over the forecast period in the Supply Chain Management Market?
- What are the technology trends and regulatory frameworks in the Supply Chain Management Market?
- What is the market share of the leading vendors in the Supply Chain Management Market?
- Which modes and strategic moves are suitable for entering the Supply Chain Management Market?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Supply Chain Management Market, by Component
- Supply Chain Management Market, by Function
- Supply Chain Management Market, by Deployment
- Supply Chain Management Market, by Organization Size
- Supply Chain Management Market, by Industry
- Americas Supply Chain Management Market
- Asia-Pacific Supply Chain Management Market
- Europe, Middle East & Africa Supply Chain Management Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 26]
- List of Tables [Total: 560]
- List of Companies Mentioned [Total: 26]
Ensure Ethical Practices:
Supply chain transparency helps to ensure that companies adhere to ethical practices, including fair labor wages, working hours, and child labor laws. With the increased scrutiny from customers, governments, and advocacy groups, companies that fail to address issues of supply chain ethics risk losing business and suffering losses in their reputation. Visibility in supply chain management enables companies to monitor compliance with ethical standards throughout their supply chain and take appropriate corrective action.
Mitigate Risks:
Increased transparency and visibility in supply chain management can also help companies mitigate risks associated with environmental sustainability, social compliance, and geopolitical instability.
Improve Operations:
Visibility into the supply chain can support companies in improving their operational efficiencies. By monitoring inventory levels and production progress throughout the supply chain, companies can optimize inventories and shorten lead times, reducing the time required to get products to market. Additionally, real-time visibility into supplier performance can help companies identify areas for improvement and collaborate on implementing process efficiencies.
Build Customer Loyalty and Trust:
Customers are increasingly concerned about the origin and sustainability of their products. By providing transparency and visibility throughout the supply chain, companies can build customer loyalty and trust by ensuring products are authentic, safe, sustainably sourced, and responsibly manufactured. This gives customers confidence that they buy from companies that adhere to ethical principles and have a positive environmental impact.
Respond to Regulatory Scrutiny:
Governments around the globe are imposing stricter regulations on supply chain management, including laws on conflict minerals reporting, human trafficking, and slavery. Companies that lack transparency and visibility in their supply chain management face a greater risk of regulatory non-compliance and legal implications. Companies can respond to regulatory scrutiny and avoid potential legal issues by implementing a proactive supply chain transparency program.
While supply chain management complexity continues to increase, so does the need for transparency and visibility. Companies prioritizing these elements in their supply chain management can build customer loyalty, mitigate risks, ensure ethical practices, improve operational efficiency, and respond to regulatory scrutiny. As the demand for transparency and visibility in supply chain leading practices in management continues to grow, companies that embrace the concept benefit in multiple ways.
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