Supply Chain Software as a Service to Rise

Supply Chain Software as a Service to Rise

“This trend toward a unifying application platform is growing and will further drive sales of supply chain solutions as more companies adhere to a platform strategy,” said Chad Eschinger, research vice president at Gartner.

“The market for supply chain technologies is buoyant.  Both supply chain execution and supply chain planning revenues are on course to grow at double-digit rates in 2014.”

Common supply chain pains include inaccurate demand forecasts as well as variability of demand, and supply chain management is often deployed to resolve these issues, according to survey results.

While much of supply chain management software is still deployed on-premise, traditional thinking is gradually shifting away to cloud based applications.  The market can expect to see a shift towards supply chain software as a service in the coming years, said Gartner.

“The market for SCM (Supply Chain Management) solutions is influenced by a climate that continues to make large capital expenditure difficult for many organizations. This environment will drive many organizations to adopt solutions that are deemed ‘best of breed’ and often delivered as a subscription, which provides more focused capabilities and typically enables less expensive and quicker deployments,” said Eschinger.

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