The global SaaS based SCM market is expected to grow from US$ US$ 3.17 Bn in 2016 to US$ 20.05 Bn by 2025 at a CAGR of 22.7% between 2016 and 2025.
In the era of automation, programmed machineries play 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.
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. Users derive high efficiency through this with reduced cost pressures that makes them highly competitive in the market. SaaS has been integrated by major upcoming and leading SCM software companies with major adoptions witnessed by the SME’s. The advantage offered is the faster responsiveness to the rapidly changing customer demands.
The global SaaS based SCM market is segmented based on deployment model as: private cloud, public cloud, and hybrid cloud. The SaaS based SCM market can be further divided by solutions into manufacturing Planning, Sourcing and Procurement, Supply Chain Planning, Warehouse Management, Transportation Management and Others (S&OP, Import/ Export Planning, EDI, Demand Planning). Various industry verticals are into adoptions of the SaaS based SCM solutions and they can be classified as Transportation & Logistics services, Manufacturing industry, Retail industry, public sector, and distribution industry. On the basis of end-user SaaS based SCM market can be further divided into small & medium enterprises (SMEs), and large enterprises.
In case of a centralized on-premise supply chain management solution for a large organization, if there is some problem at the central server, there can be a catastrophic loss to the entire data, while in case of cloud based service, the data is processed from servers to servers at a very fast speed. Even if one server collapses, there are other servers that ensure the continuity of the operations and thus reducing the downtime of services. Realizing the cost efficiencies, redundant services and the need to cater to ever increasing demands, customers are steadily making a shift to cloud based supply chain services.
Each customer has become a separate segment today. Demands of any customer rapidly change today and companies offering services to them have to respond quickly. Survival in a highly dynamic environment requires quick response and that is provided by SCM software. These factors have led to increased adoptions of SaaS based SCM software. IBM Corporation, Oracle Corporation, SAP SE, Descartes Systems, Infor, JDA Software, Epicor, Manhattan Associates, Kewill and HighJump Software are some of the major players in the global SaaS based SCM market.