Logistic and supply chain management software provides real-time analytical platform, that manages information and product flow across supply chain network. It is designed to strengthen and boost up the supply chain operations. Additionally, it administers inventory, production, transportation, sourcing and product demand management and works on customization basis according to requirements of organisation. It provides exception-based process management platforms and better visibility to organizations with a cross-functional access that enable micro-management to staff.
Drivers and restraint factor of the market
Driving factors such as increase in demand to manage complex supply chain network with software; increase in demand for cloud-based services; advancement in digital technologies such as machine learning, Internet of Things (IoT) and others boost the growth of global market. However, increase in security & privacy concerns and lack of IT infrastructure are expected to hinder market growth during the forecast period.
Advancements in digital technology
Globally, organizations focus on reducing maintenance and boosting efficiency in material handling and manufacturing solutions with effective data collection integration through networking equipment and connected devices for increased real-time movement of material through supply chain. Companies present in different sectors are focusing majorly to adopt digitalised business models along with investment in their supply chain management. For instance, BMW, an automaker is focusing to digitalize whole factory along with it the focus is on making a supply chain segmentation data analytics driven for inbound parts.
Increase in demands for cloud-based services
Cloud-based service are low on maintenance and required less capital cost, hence preferred mostly by enterprises such as large enterprises and SMEs. Increase in demand for management of infrastructure system and workload shift to cloud boost the cloud-based SCM software adoption. Real-time supply chain tracking, Direct IT control, cost-effective nature of cloud deployment and faster data processing are some factors that are expected to boost the demand in market of logistic and supply chain management software market.
Improved supply chain visibility
Supply chain visibility allow businesses to monitor underperforming processes. In addition, it generates data-driven and reliable insights to improve business operations. Rise in demand to increase visibility of supply chain and demand for improved transparency of inventory, shipment information and orders boosted logistic and supply chain management software market growth.
Major players in the market.
Some major players present in market include Tipalti, Fishbowl Inventory, Epicor, SAP, Aptean, IFS AB, Axway, Syncron International, Magaya Corporation, Appian and others. These players present in market are adopting various strategies to hold the market share and compete.
Recent key development in the market
In February 2017, acquisition between JDA Software and i2 Technologies, a provider of supply chain management solutions (software and services) took place with a focus of establish JDA as an enterprise software company that will also work on supply chain management solutions as their focused area. This deal was completed with an enterprise value of about US$396 Million.
Leading region and fastest growing region
Geographically, North America dominated logistic and supply chain management software market. The dominance of the region was due to presence of huge transportation industry in related areas. However, considering fastest growing region, Asia-Pacific is expected to witness highest growth rate during the forecasted period owing rapid adoption of technological advancements.
Logistic and supply chain management software market is broadly segmented in two categories; product type and application. Segmentation by product type is sub-categorised as On-premise Logistics Software and Cloud Logistics Software. Whereas, application segment is sub-categorised as Logistics Enterprise, Government, Military, Agriculture and Others. The on-premise SCM software segment dominated the market. However, on contrary, cloud-based segment is expected to witness highest growth rate due to increase in cloud logistics software adoption in SMEs.