Businesses Up Investment in Supply Chain Management Software
The report also indicated organizations that adopt supply chain software still prefer hosted or on-premises applications.Supply chain management software is on track to reach $10 billion in revenue in 2014, a 12.2 percent increase from 2013, and the highest annual growth rate since 2011, according to a report from IT research firm Gartner. While the report noted the SCM software market is nearing the point at which more than 60 percent of its revenue will derive from existing implementations, approximately 16 percent of SCM investments were by companies adopting this software for the first time. Gartner expects that figure to fall to fewer than 10 percent by 2018, and that the vast majority of "new" spending will come from organizations that already have SCM and are purchasing add-on functionality. "The magnitude of information becoming available is staggering. It reminds me of RFID—every single item or package is getting scanned, and that created a huge amount of data," Chad Eschinger, research vice president at Gartner, told eWEEK. "Businesses were struggling to manage it, and that’s the same thing businesses are struggling with today—that’s one reason we’re seeing a rise in analytics and more predictive types of analytics."
Based on a survey of 447 supply chain professionals across North America conducted in the fourth quarter of 2013, the study revealed 43 percent feel that due to deal with rising levels of integration complexity, they were strongly committed to a single underlying technology platform that would improve the visibility of internal processes and enable more effective communication and collaboration with suppliers and buyers.