Supply Chain: Small Cloud Providers Serve SCM Market

supply chain

While smaller cloud-based Supply Chain Management vendors grow further, the overall growth of procurement and SCM market also gets stronger. According to a research conducted by Gartner, SCM offerings show a growth of 17% in 2014. Aravo Solutions Inc. tops the cloud-based vendors with the highest growth rates at 70%. Last year, the SCM market grew at a 10.8% pace and only 7.5% in 2013 – a valuable increase of 3.3%.

According to Chad Eschinger, research vice president at Gartner, the growth in the cloud is coming from various directions, including large mature corporations and smaller companies. In some markets, large companies with on-premise software are moving to the cloud. On the other hand, emerging markets and small companies do not have on-premise investments, making it easier for them to move to the cloud.

What can they get from moving to the cloud?

  • These companies may be using manual processing such as spreadsheets and paper. By shifting to the cloud, they will be able to automate these processes. Since cloud services are easier to use, they can start running them in six to eight weeks – a big difference from the up to nine months of on-premise software installation. Moreover, cloud services do not require a number of IT staffs for maintenance.
  • The cloud has collaboration capabilities that enable manufacturers to share information with suppliers, trading partners and even customers. It also allows for faster product to market transfer and higher profit margins. Other packages also include real-time communications during transit from shipments to distribution warehouses.

If your company is planning to adopt cloud, evaluate your supply chain management and procurement processes carefully. Cloud-based SCM is projected to continue outpacing the growth of the overall SCM software market with a compound annual growth rate of approximately 19%. As an opportunity to oversee your workflows and asses for improvement, you should not miss the chance of being a part of a growing industry.

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Charlie Alsmiller

Throughout his career, Charlie Alsmiller has focused on customer problems in difficult industries such as Energy and Telecommunications. Prior to starting Appterra in 2005, Alsmiller was VP of Global Operations for Allegro Development, a leading provider of software for the energy sector. He has also served as president of OmniSpace Technologies, a leading SaaS provider that he founded in 1999. He spent over 10 years in the consulting world with Price Waterhouse and Deloitte Consulting, where he participated in a wide variety of projects for very high profile clients. Mr. Alsmiller holds a BBA from Baylor University in Management and Information Systems and a MBA from the University of Dallas in International Business. Specialties: Technology ventures, Enterprise Software, Contract Negotiation, International Operations, Private Equity, Product Management, Strategic Alliances, Software Implementation, Software Development

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