A new study from the leading market research company Technavio has found that the global supply chain management software market is on course to grow at an impressive compound aggregate growth rate (CAGR) of 11% over the next few years, reaching $9.56bn by 2024.
Digging a little deeper beneath the headline reveals the main driver of the growth: the emergence of supply chain visibility and event management (SCVEM) software, which promises to be a real boon to procurement teams managing extraordinarily intricate global supply networks.
SCVEM allows firms to manage supply chain events across different departments, and is able to define crucial aspects of the whole supply chain.
This means that it has the potential to make many aspects of supply chain management, including supplier relationship management, a considerably less hit-and-miss affair.
Supply chain management pros can use the software to optimise the most crucial decisions concerning business strategies, delivering significant cost reductions and improving operational efficiency.
Additionally, SCVEM software helps increase labour productivity, slash wasted warehouse space, and achieve impressive operational cost reductions.
Part of the latest supply chain management software, SCVEM can control, measure, simulate and monitor each and every business activity related to supply chain processes.
The study also highlights the role that blockchain technology is poised to have on driving increased uptake of supply chain management software over the same period.
When integrated with supply chain management, blockchain provides a decentralised record of operations, virtually eliminating human error and, like SCVEM, delivering operational cost reductions
Moreover, blockchain technology packed into supply chain management software appreciably enhances traceability, enables real-time tracking, potently strengthens security, virtually eliminates fraud, and slashes the amount of paperwork that would otherwise be required.
A senior Technavio analyst said:
“Other factors such as the growing demand for fleet management in logistics service industry, and the increasing adoption of big data analytics and IoT will have a positive impact on the growth of the supply chain management software market during the forecast period.”