Supply Chain Application Marketplace Review

SAP grew their share of the worldwide SCM market from 23.9% in 2013 to 25.8% in 2014. 

There are broadly 4 categories of firms that supply supply chain management application software.

1.   ERP vendors offering comprehensive solution or a variety of vertical industries 
2. Independent vendors offering a comprehensive solution for a variety of vertical industries 
3. Niche Players offering solution for specific supply chain functionalities.
4.  Niche players offering solution for specific industries
   
   
     Its important for supply chain managers to understand the interaction between the ERP systems and niche functionality provided by supply chain retailers. Although the supply chain application marketplace players are  viewed as competitors they also rely on each other to compliment features and functionalities
   
   Among the major trends in the SC Application Market review  is the gradual shift to Cloud-Based (SaaS) Technology .SCMS adoption is growing faster than the broader enterprise application software market. The annual revenue from SCMS (both premise-based and SaaS) reached $10 billion in 2014, a 12 percent increase over 2013.
   
   A recent Gartner projection forecasts 60% of the growth in Supply chain management software (CMS)  between 2015 and 2018 will be based on the SaaS subscription model, driven by a growing realization of the benefits of cloud-based services.
   
   The SaaS-based SCMS market grew by about 24% in 2014 and is projected to continue to grow at a 19% (CAGR), reaching $4.4 billion in annual sales by 2018
   
    ERP vendors particularly SAP has added supply chain management functionality to their offering and succeeded in leading the marketshare by a huge margin, and make it difficult for independent or niche players to sell to ERP vendor clients. Further ERP vendors have been developing industry specific supply chain management solutions..and as a result the share of supply chain management software sales going to ERP vendors has risen , while the niche and start ups vendors have drastically been left at the bottom languishing in sales

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Reviewing 5 Trends that will shape supply chain and logistics by 2016

5  trends that will shape   supply chain  and logistics by 2016

The next 5 tech frontiers : that will change the supply chain and logistics industry :

1)Algorithm, Remote and real time shipping : Powered by  drones, this technology is set to go where no man, machine or android has ever been before.. At the customers doors without a human waiting to deliver goods.
The development of drones has progressed much faster that users expected. Automated Drones with Remote sensing, using powerful algorithms, along with geo targeting,remote sensing capabilities will deliver packages to consumers in flat 60 mins
The top speed of a drone : 50 mph per hour while the max done payload is less than 5 LBS, at this capacity the drone can deliver 86% of Amazons inventory Trend :
How Soon :in very near future within 2-5 years

2)Same day delivery is now MUST ‘ In the early 2012, shipping time used to be one week as a standard. In 2012, around 50% of consumers felt ok to wait seven days ( a week for a package delivery) In 2014, only 35% felt ok with one week deliveries

How soon? An overwhelming 85% believe that same day delivery should be the norm by 2017-18

3)RFID zation of managing inventory by :The RFIP market is further set to grow with increasing consumer online buying.Another step towards industry moving toward internet of things , fuelled by increasing adoption of RFIDs, as they reach the point of sale quickly.An Idtechex research data show that RFID market will be up from $8.9billion in 2014 to $27.31 billion by 2024

4)Real vs Retail : The lines between retail stores and online stores  is soon to get blurred : Closer home online retail will have much bigger share of the wallet with more than 10% of all retail sales coming from internet by 2017

infographic: via

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