Global SaaS-Based SCM market is expected to grow from US$ 2.65 billion in 2015 to US$ 20.05 billion by 2025 at a CAGR of 22.7% over the forecast period 2016 and 2025.
Within the SaaS-based SCM market, various regions are observed to exhibit different growth trends. The North America (NA) and Europe (EU) in total holds more than half of the total SaaS-based SCM market, while the regions such as Asia Pacific (APAC), Middle East and Africa (MEA) and South America (SAM) are exhibiting a high growth due to various factors such as increase in internet infrastructure, increased spending of an average individual. Adoptions of SaaS-based SCM is expected to accelerate at a high growth rate in the coming few years due to, financial, technology and communications and government industry verticals’ inclination towards adopting such solutions which can provide better energy efficiency, easy capacity expansion and optimized CAPEX. Many small and large organizations and enterprises in the above verticals have adopted SaaS-based SCM solutions owing to the various advantages it offers, thus influencing theSaaS-based SCM market revenues and growth rates globally.
SaaS is an emerging technology that is transforming traditional on-premise software systems into a modern cloud-based solution globally. Along with reduced efforts of running a process, installing and purchasing software, it also helps an organization minimize its costs and maximize its revenue. Consequently, private organizations across the world have understood the potential behind these services and come up with cloud based services.
SaaS-Based SCM Market Insights
Rapid pace of digitization and the need for cost efficient solution
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 SaaS-based SCM 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.
With the help of cloud solutions, users expand in turn their customer base without many additional costs in the era of growing competition. By evenly spreading costs and affordable pricing schemes for businesses that might have been expensive otherwise for the same capabilities is luring businesses to adopt the model leading to the growth of the SaaS-based SCM market.
Another most critical aspect related to supply chain management is the redundancy of data. 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
Demand for a more enhanced solution enabling good traceability and visibility in the supply chain
SaaS applications have the potential to cater services to small, medium and large enterprises efficiently. Cloud-based procurement management systems give all decision makers involved in the supply chain complete visibility and traceability of the inventory needs, the current position of the material being supplied, demand in the SaaS-based SCM market and the most updated cost information about the product. It gives more power and a bird’s eye view of the data to the user of the application. Value addition at each node of the supply chain has made it a lot simpler to create benefits for the end-consumer.
Users of SaaS-based SCM applications can see exact inventory counts, do cost comparisons, and track the inventory easily that allows them to make quick decisions. Such benefits have resulted in large adoptions by industry verticals today that is driving the SaaS-based SCM market.
Also, SaaS vendors utilize redundant servers to back-up data. So if a server in the clouds malfunction, users would be automatically redirected to a back-up server without any noticeable performance issues. Also, SaaS vendors perform daily data back-ups. Since there is one version of the software, there are typically more vendor resources directed to identifying bugs/issues and the related fixes/patches required to address those concerns. These added benefits further result in greater adoption of SaaS-based SCM applications in the market.
Exhibit: SaaS-Based SCM Market by Region
Few of the recent strategies by some of the players in SaaS Based SCM market landscape are listed below-
2017: Descartes Systems‘ Global Logistics Network solutions were implemented by the International Air Transport Association that would enable small to medium sized freight forwarders to electronically communicate with each other.
2017: Scott Equipment enhanced the online shopping experience with solution from Epicor
2017: QuadPackaging, backed by Quad/Graphics, is leveraged Epicor AVP to help clients’ brands get to the retail market.
The report segments the global SaaS Based SCM market are as follows:
Global SaaS-Based SCM Market – By Deployment Model
Global SaaS-Based SCM Market – By Solution
Global SaaS-Based SCM Market – By Industry Vertical
Global SaaS-Based SCM Market – By End User
Global SaaS Based SCM Market – By Geography
Global SaaS-Based SCM Market - Company Profiles