The value of the supply chain market is set to grow past $13billion this year, and experts are saying it’s all down to digitisation.
According to Gartner, this sudden surge is up by 11% since 2016, and is set to exceed $19billion by 2021.
How could this be? An industry that was once thought of as being about as cool as a cardboard box is exceeding wealth and growth when compared to some of the most out-there industries and it’s only set to grow more.
There isn’t any doubt among business owners that behavioural shifts and technology are both augmenting the way we all operate. But there is one significant change that is a catalyst for much of this change: data.
End-user organisations are looking to deliver greater efficiencies by exploiting the vast amounts of data being populated throughout their supply chains. Modern supply chains are generally made up of an expansive network of third-party businesses and connections, and in a digital world it’s easy to track the information that flows through all of these relationships.
This is the reason that much of the growth behind the supply chain market stems from the new technologies and solutions that are able to assist organisations the most with the digital supply chain management strategies.
According to Supply Chain Digital, we’re now able to break the supply chain market up even further into new and distinct product areas:
“The SCM market forecast is made up of three categories: supply chain planning (SCP), supply chain execution (SCE) and procurement. Adoption and associated revenue for SaaS are moving through the market at different rates, with procurement leading the move to cloud, and SCP trailing.”
Not only is there an increase in cloud-first vendors, but the end-user is also becoming more comfortable navigating the security challenges and expertise required to migrate to the cloud.
eCommerce will only drive greater investment into SCM as the end-user begins to seek out deeper analytics for improved decision making. The CeMAT Team is exciting to see the new technologies and SaaS deployments that aim at bridging this divide between the need for innovation, and the ability to attain a fully integrated, digital supply chain.
What are you thoughts on the growth in the supply chain market? Let us know in the comments below.