The need for cost efficient solution coupled with rapid pace of digitization is driving the SaaS based SCM market between 2015 and 2025
In the era of automation, programmed machineries play vital role in reducing cost and time taken, to produce goods or to cater services. The users of applications are enabled to have more control over the sensitive data with features like 24/7 monitoring and security. Rapid digitization has added pressures on the organizations today to rely on cloud based applications. A cloud based application can be used to easily scale up or scale down the operations as per the demand being currently witnessed in the market. It handles flexibility to the application users. Flexibility offered by the SaaS model for SCM applications gives competitive advantage to users by letting them to quickly adjust to the demands of their respective customers and incorporate the necessary changes in the operations efficiently. This factor is currently driving the market by 22.7% between 2015 and 2025.
Global SaaS based SCM market has been categorized by deployment model majorly into two categories; public cloud based SCM, private cloud based SCM and hybrid cloud based SCM. The private cloud deployment model has witnessed less adoptions on account of it being relatively costlier deployment model when compared to others. On the other hand, Public cloud model with economical deployment cost has gained popularity across all industry verticals. The advantage of public and private cloud both offered in hybrid cloud has driven the adoptions of that deployment model. The leverage of switching offered has proved to be attractive for bigger organizations which are keen on cost savings along with high level of data security and privacy.
The SaaS based SCM solutions cater to the needs of various industry verticals in different capacities and are tailor made for every industry as per the requirements. The solutions being used are manufacturing planning, sourcing & procurement, supply chain planning, warehouse management, transportation management and others. The others category consists of solutions such as Sales & Operations Planning, Import/ Export Management, Demand Planning and Electronic Data Interchange. With the mentioned solutions the company provides its services to Transportation & Logistics sector, Manufacturing sector, Retail sector, Public sector and Distribution sector in the market. The end users are categorized into small & medium enterprises and large enterprises for SaaS based SCM market.
Some of the major players influencing SaaS based SCM market are Descartes Systems, IBM Corporation, Oracle Corporation, Inc., SAP SE, Infor, Epicor, JDA Software, HighJump Software, Kewill and Manhattan Associates., among others.