Supply chain management software is on pace to hit $10 billion in revenue this year, according to a report from Gartner. That would be an increase of 12.2% over last year, and would be the biggest growth the industry has seen since 2011.
The firm surveyed nearly 450 North American supply chain professionals in the fourth quarter of 2013. Respondents said inaccurate forecasts of demand for products and variability of demand were leading obstacles impeding their progress toward achieving goals within their organizations. Gartner says both problems can be overcome with the help of supply chain initiatives and technologies.
"The market for supply chain technologies is buoyant," said research vice president Chad Eschinger. "Both supply chain execution and supply chain planning revenues are on course to grow at double-digit rates in 2014."
"Through 2018, 40 percent of new spending and 80 percent of recurring end-user spending will focus on advancing and extending foundational supply chain capabilities," he said.
The firm estimates that 70% of businesses will pursue a single-platform strategy to integrate disparate systems, to improve supply chain visibility through 2018.
You can find Gartner's full "Forecast Analysis: Supply Chain Management Software, Worldwide, 1Q14 Update" report here.
A couple months ago, Gartner released its Supply Chian Top 25 list for 2014 with Apple in the top spot, followed by McDonald's, Amazon, Unilever, and P&G. Samsung, Cisco, Intel, Colgate-Palmolive, and The Coca-Cola Company rounded out the top ten. See the full list here.
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