Increased awareness of Shared Infrastructure Model Coupled with rising use of Big Data Analytics in organizations to boost the SaaS based SCM Market at a CAGR of 22.6%

Published Date: 06 Feb 2017

According to the new research report published by The Insight Partners, titled “SaaS Based SCM Market - Global Analysis and Forecast to 2025”, The global SaaS Based SCM market is expected to grow at a CAGR of 22.7% during the forecast period 2016 - 2025, to account to US$20.05 Bn by 2025.

The supply chain is one of the key sources of competitive advantage for companies that drive growth in their businesses. Supply chain systems have gained wider and vital importance in the last one or two year as a result of high competition in the product based market. The only distinguishing factor being the service from service providers. A strong supply chain ensures a proper balance between the supply and demand of the product in the market. The software solutions for SCM thus help organizations to reduce their operational costs, increase their productivity, provides them with the flexibility of scaling operations up and down as per the demand in the market.

The supply chain capabilities integrated into the cloud model provide more cost savings to the users of these solutions and benefit is returned to the end consumer. The scope of the supply chain in this report encompasses Supply Chain Planning solutions, Supply Chain Execution solutions, and Manufacturing Execution solutions. The SaaS-based SCM market is expected to witness an aggressive growth in the coming few years. SaaS-based supply chain leverages the power of collaboration across a broader platform that in turn drives a higher level of efficiency for its users thus making a positive impact in the market. The legacy on-premise systems are being replaced with cloud-based models for further cost savings.

Key findings of the study:

North America is anticipated to account the largest SaaS Based SCM market share

Based on the deployment model, the hybrid cloud is projected to dominate the SaaS Based SCM market

Supply chain planning led the SaaS Based SCM market by solution

Transportation and logistics services led the SaaS Based SCM market by the industry vertical

Based on the end user, the large enterprises is projected to dominate the SaaS Based SCM market

In the era of automation, programmed machinery plays a 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. The flexibility offered by the SaaS model for SCM applications gives a 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. Users derive high efficiency through this with reduced cost pressures that make them highly competitive in the market.

Descartes Systems Group, Infor, JDA Software, SAP SE and Epicor are few of the major players are operating in the market and offering a wide solution portfolio. North America, being technologically advanced region and due to the high presence of large enterprises has witnessed the highest adoptions of SaaS-based SCM by various organizations. Europe is the second largest adopter of SaaS-based SCM solutions while the APAC region is pacing up fast to catch up with the developed regions of the world. The biggest users of SaaS-based SCM have been transportation & logistics services companies, manufacturing sector, retail sector, public sector, and distribution sector.

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