Subscribe to our free, weekly email newsletter!

Global supply chain management software market grew 12.3 percent in 2011 , says Gartner

By Staff
May 21, 2012

The worldwide supply chain management (SCM) software market totaled $7.7 billion in 2011, a 12.3 percent increase from 2010, according to Gartner, Inc.

It was the second year of double-digit growth for the SCM software market as supply chain investments kept their priority status and moved forward, despite caution from IT budget decision makers.

“Despite ongoing economic uncertainty, the market for supply chain applications showed itself to be pretty resilient in 2011 with most SCM providers continuing to expand their footprints,” said Chad Eschinger, research vice president at Gartner, in a statement. “North America and Western Europe continued to be the prime consumers of SCM software in terms of dollars spent, with nearly 79 percent of market revenue. However, European growth slowed in 2011 while Asia/Pacific continued to experience robust growth that significantly outpaced the market average.”

Last year, Gartner reported that 2010 was also a solid year for supply chain management software.

SAP continued to lead the SCM software market, accounting for 19.9 percent of the worldwide market.

Oracle was the No. 2 vendor with 16.9 percent market share. Ariba experienced the strongest growth among the top five vendors with SCM software revenue increasing 46.5 percent in 2011.

“The SCM software market is fragmented, with a plethora of small and midsize vendors (with revenue of less than $50 million) across regions and its four primary market segments,” said Eschinger. “Nevertheless, the top five vendors — SAP, Oracle, JDA Software, Ariba and Manhattan Associates — collectively held 48.3 percent of the worldwide SCM software market based on 2011 total software revenue.”

Eschinger added that SCM offerings delivered as software as a service (SaaS) subscriptions continued to bolster above-market growth in 2011 at 21 percent for both long-standing incumbents and many premium point product vendors, with focused capabilities for specific niche markets, while perpetual licenses also grew significantly at 15 percent.

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Companies used to compete on price and service. The future of supply chain, according to Steve Melnyk, is culture. In fact, innovators like Apple, Google, and Unilever are already leading because of their cultures. Your company can too.

As evidenced by the widening gap in the United States trade deficit, which has seen imports far outpacing exports for years on end, the September edition of the “Global Trade Pulse” from global maritime and trade consultancy Hackett Associates paints a similar picture for trade activity in North America, with some overlapping themes apparent in the report’s European data, too.

Kurt Nagle, president and CEO of the American Association of Port Authorities recently voiced his endorsement of this trade legislation

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Purolator white paper highlights common Canadian shipping mistakes. From failing to appreciate the complexity of the customs clearance process to not realizing that Canada recognizes both French and English as its official languages, U.S. businesses frequently misjudge the complexity of shipping to the Canadian market. This often results in mistakes - mistakes that can come with hefty penalties and border clearance delays, and that can result in lingering negative perceptions among Canadian consumers.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA