SCM Software Global Market Report 2021: COVID 19 Impact and Recovery to 2030

SCM Software Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • April 2021 •
  • 175 pages •
  • Report ID: 6067924 •
  • Format: PDF
Major players in the scm software market are SAP, Oracle, JDA Software Group, Inc., Infor Global Solutions and, Manhattan Associates.

The global scm software market is expected to grow from $17.51 billion in 2020 to $18.96 billion in 2021 at a compound annual growth rate (CAGR) of 8.3%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $31.48 billion in 2025 at a CAGR of 13.5%.

The supply chain management (SCM) software market consists of sales of supply chain management software.The SCM software manages the flow of products and information across the supply chain, thereby strengthening the supply chain operations in an organization.

Softwares such as SCMs are used to bring equilibrium between supply and demand by improving business processes and plan the future needs by using algorithms which provides consumption analysis.

Supply chains are continuously evolving with data at the center of every stage in the value chain.With a huge amount of data generated, there is an enormous challenge in the form of data and IT security risks.

Protecting the privacy and still sharing data across the supply chain is a major challenge which could become a roadblock for the SCM software industry.The Target breach was caused by lax security at an HVAC vendor wherein personal information of as many as 70 million people was compromised.

The information stolen included customer names, credit or debit card number, the card’s expiration date and CVV number.

SCM software’s can manage the complexities of the modern day supply chain.With businesses going global and increased competition, the supply chains are getting complex.

The number of suppliers, orders received/completed, variety of product offerings, information generated etc. all have increased substantially. Through the use of SCM software, the complexity can be reduced along with cost and resource savings. The need for companies to remain relevant in the market amidst the highly competitive conditions is a crucial driver for the growth of the SCM software market.

The General Data Protection Regulation (GDPR) 2016/679 is a regulation in EU law on data protection and privacy for all the individuals within the European Union and the European Economic Area.It also addresses the export of personal data outside the EU and EEA areas.

It was implemented on 25th May, 2018 and replaces the Data protection Directive. For now, protecting internal data while still sharing product and consumer information with partners across distributed supply chains is a challenge that comes up with the GDPR regulation.

Home Depot, one of the biggest retailers selling home improvement and construction products and services used to have separate logistics management departments in every single physical store to utilize replenishment and store management-related activities.This was costly as each store had to process the replenishment orders to get the required materials from the suppliers separately.

After realizing that the de-centralization of the logistics management was a major issue, Home Depot decided to centralize those individual departments into one department in its corporate headquarters. With the help of technology and right SCM software solutions, Home Depot’s new centralized inventory and replenishment department’s overall performance improved the demand forecast accuracy and decreased the cost of operations for the replenishment orders.