Story image

Small vendor uprising in thriving supply chain management software market

20 Jul 2018

The global market for supply chain management (SCM) is in a good place after adoption accelerated significantly in 2017.

According to data from Gartner, total worldwide market revenue grew 13.9 percent to reach a total of $12.2 billion in 2017.

At a closer look, Australia’s SCM market revenue surged 16.1 percent to reach AU$391.7 million. New Zealand on the other hand was slightly behind the global eight ball with growth of 7.9 percent to reach NZ$51.3 million.

"The SCM market’s revenue performed well in 2017, continuing the trend of accelerating growth from recent years. This is happening because SCM technologies are a key component of delivering digital business strategies," says Gartner research director Balaji Abbabatulla.

“SCM technologies create digital value by optimising the flow of products, services and related information from source to customer and from customer to source."

Abbabatulla says in regards to the vendors, the top five all increased revenue but only JDA and Infor actually grew their market share after exceeding the total market growth. Despite the top five rankings remaining the same in 2017, the ‘Other Vendors’ category underwent substantially faster growth than the top five incumbents, indicating the uprising of the smaller vendors.

"Smaller cloud-native vendors enjoyed an average revenue growth of 41.4 percent in 2017,” says Abbabatulla.

“The top five vendors are defending their market share by pivoting toward cloud-first strategies and quickly introducing new products through development, acquisition or partnerships on their cloud platform."

Gartner asserts cloud offerings are accelerating growth in the market with a large factor being an increasing number of midsize organisations adopting SCM solutions to support digital business models. This offers significant revenue growth potential as they are net new customers of SCM solutions and not bound by replacement and upgrade cycles from legacy investment.

"Cloud solutions typically have lower barriers to entry and are more easily scalable, and are therefore a better fit for midsize organisations looking at SCM for competitive advantage," says Abbabatulla.

"We expect that vendors offering a well-defined, vertical-industry-oriented strategy for midsize organisations will grow rapidly over the next five years."

Abbabtulla says as much of a buzzword it is, artificial intelligence (AI) has a significant part to play in the market.

"While adoption levels of AI vary across sub market segments, we expect it to drive revenue growth as AI technologies and tools mature. This is because AI can bring productivity and user experience improvements by automating routine tasks and providing more effective support to complex decisions,” Abbabtulla concludes.

ForgeRock launches Sandbox-as-a-Service to facilitate compliance
The cloud-based testing environment for APIs enables banks to accelerate compliance with Open Banking and PSD2 deadlines.
Huawei picks up accolades for software-defined camera ecosystem
"The company's software defined capabilities enable it to future-proof its camera ecosystem and greatly lower the total cost of ownership (TCO), as its single camera system is applicable to a variety of application use cases."
Tech community rocked by deaths of Atta Elayyan and Syed Jahandad Ali
Both men were among the 50 killed in the shooting in Christchurch last Friday when a gunman opened fire at two mosques.
Ingram Micro gives Cloud Marketplace an overhaul
Including a new UI, improved sales and marketing tools, and an API for integrating a partner’s own storefront, CRM and billing.
NZ ISPs block internet footage of Christchurch shootings
2degrees, Spark, Vodafone and Vocus are now blocking any website that shows footage of the mosque shootings.
Barracuda expands MSP security offerings with RMM acquisition
Managed Workplace delivers an RMM platform with security tools and services, such as site security assessments, Office 365 account management, and integrated third-party antivirus.
SolarWinds extends database anomaly detection
As organisations continue their transition from purely on-premises operations into both private and public cloud infrastructures, adapting their IT monitoring and management capabilities can pose a significant challenge.
HP extends laptop & workstation recall due to battery fire hazard
HP has extended its worldwide recall of several notebooks and mobile workstations due to the high risk of fire and burn hazards.