According to Gartner, the supply chain management (SCM) and procurement applications has outplaced the software markets in 2014. They have developed to a solid growth of 10.8 percent through sustained application demand.
Gartner’s research vice president, Chad Eschinger, says that modernizing supply chains made specialized and large-suite providers become more agile and innovative. He also articulates the significant growth of cloud SCM, an above-market 17 percent. As organizations seek to modernize their supply chain portfolio, new on premise licenses grows to nine percent.
Three well-known companies got the highest growth rate. The German multinational software company, SAP, retained the top spot with a growth of 19.9 percent. It also extended its lead with a 25.8 percent market share within the SCM market. SAP continues to innovate and introduce new and acquired SCM products, upselling solutions within its established ERP-installed base.
The Oracle, on the other hand, also retained its position, even with a decline of 1.4 percent from 2013’s 16 percent. Now with 14.6 percent, it remains as the second largest supply chain technology and provider. It is also considered as the largest within supply chain execution (SCE). Another company that sustained its rank is JDA Software. On third place, JDA has revenue of $438 million in 2014. With 4.4 percent of the local market, it remains the leading pure-play, supply chain-focused provider.
Both small and large businesses are willing to spend for new SCM software. Small businesses with annual revenue of up to $50 million are willing to spend $30,000, while large businesses are willing to spend $171,000 as reported by Software Advice, a Texas-based consultancy that specializes in researching and reviewing supply chain software.