The global supply chain management market size was valued at USD 21,129.2 million in 2022 and is expected to expand at a CAGR of 11.1% from 2023 to 2030. The growth of the SCM market can be attributed to the rising demand and increased awareness of the benefits of SCM solutions, such as transportation management systems, planning & analytics, forecasting accuracy, warehouse & inventory management, supply chain optimization, procurement & sourcing, waste minimization, manufacturing execution and relevant synthesis of business data. Additionally, the rapidly growing adoption of information technology and technical breakthroughs improves and supports the overall supply chain, contributing to market expansion. The COVID-19 outbreak had a positive impact on the target market. A significant surge has been observed due to the increased usage of SCM during the COVID-19 pandemic to predict and meet the demand and supply requirements.
The set of things, including designing a new service or product, obtaining raw materials, converting them into a semi-finished or finished product, their transportation, and distributing or delivering them to the end-users, is known as a supply chain. The set of software used for seamless integration and coordination of all the fore-mentioned events, along with providing support after the sale, is known as supply chain management (SCM). Simply, it is the management of the flow of goods from the source to the user stage in a synchronized manner. All the partners, such as information system providers, vendors, third-party companies, carriers, and others, are linked and connected in this chain.
Adoption of SCM software among various firms and organizations is increasing as it allows them to efficiently manage the sourcing of the raw material, manufacturing, and assembling of any goods or products hence driving the market growth. Moreover, it also assists in tracking inventory and warehouse, managing the order entry, distribution channels, product delivery, demand &supply requirements, and financial information, further surging the market growth. In addition, it allows management to work strategically with the company's distribution network, which is again driving the market expansion. A lack of IT infrastructure in developing countries and a rise in security and privacy concerns hampers the growth of the global market.
In terms of technology deployment, organization infrastructure, strategic partnerships, and enterprise resource management, SCM solution and services enable companies to improve their decision-making skills. Furthermore, by exploiting the acquired insights and data, SCM solutions promote strategic decision-making and assist enterprises in optimizing return on investment, strengthening their market position, and accelerating growth. Advancements in industrial-grade digital technology, a shift toward cloud-based SCM software, and a growing need for greater supply chain visibility fuel SCM market growth.
The COVID-19 pandemic had a significant positive impact on the target market. Lockdown was imposed in all the countries across the globe to stop the further spread of SARS-CoV-2. Owing to this, the supply chain across the world was disrupted along with a shortage of raw materials and failed to meet the requirements for supply and demand for goods and products. As a result of this, various businesses have observed a huge surge in the adoption of SCM to meet consumer demand, hence broadening its usage across the globe. The digital revolution is transforming every facet of industries, with a growing number of enterprise vendors and third-party providers embracing digitized systems for SCM, boosting the global industry.
Based on component, the global market is bifurcated into solutions and services. The solution segment is further classified into the transportation management system (TMS), planning & analytics, warehouse & inventory management system, procurement & sourcing, and manufacturing execution system. The solution segment accounted for the largest share in 2022 and is expected to dominate the market during the forecast period. SCM solutions are used for quality assurance, supplier management, and logistics management. SCM solutions provide benefits such as higher visibility, increased efficiency, analytics, lower costs, greater agility, and increased compliance over the complex supply chain. It assists in automating major procedures like processing orders, billing, and order tracking resulting in reducing time and administration expenses. SCM systems also identify excess materials and costs connected with shipping, warehousing, and manufacturing, which helps reduce excess inventory.
The transportation management system segment held the largest share in 2022. A transportation management system is used to plan freight movement and assist clients in efficiently planning and executing transportation activities across the supply chain. The demand for TMS has been rising rapidly because transportation management systems play a major role in supply chains, impacting every phase of the process, from planning and procurement to logistics and lifecycle management. The usage of intelligent wireless connectivity and smart sensor technology solutions to provide accurate data about vehicles to companies is expanding. With the help of this technology, the companies can provide real-time tracking data such as delivery route, current location, and the estimated time of arrival to the consumers, thus enhancing the supply chain process.
The service segment is further bifurcated into professional services and managed services. The service segment is expected to experience significant growth at CAGR during the forecast period. SCM services provide data-driven insights to companies and improve their supply chain operations. The services offer real-time predictive production cost assessment services to identify process inefficiencies and opportunities. It effectively executes data-driven sales and operations planning and inventory management to assist in cost reduction. SCM services enable the monitoring of manufacturing activities to optimize performance and reduce risk.
The on-premises segment accounted for the largest market share in 2022. The cloud-based segment is expected to experience significant growth at CAGR during the forecast period. Companies are adopting cloud-based solutions for greater adaptability and flexibility in the supply chain process. It also offers various benefits, such as increased processing capabilities, storage, cost-effective pricing structures, and a reduction in operational overhead. These benefits are fueling market growth.
In February 2019, Blue Yonder partnered with Microsoft to deploy its SCM software on Microsoft Azure Cloud. Blue Yonder offered enhanced flexibility and security to commercial customers. By integrating Machine Learning (ML) and Artificial Intelligence (AI) technology into the company’s SCM platform, Blue Yonder focused on developing cutting-edge applications for customers and partners on the SCM platform. Blue Yonder enterprise customers can enhance and analyze datasets across their supply chain by connecting their digital assets. This enables them to make smarter, more effective AI and ML-based decisions.
Enterprise Size Insights
The large enterprise segment accounted for the highest market share in 2022 and is expected to dominate the target market during the forecast period. The growth can be attributed to increased demand for constant monitoring systems and automation features such as advanced shipment notification management, customizable notifications, in-transit status updates, user-configurable dashboards, and visual supply chain maps in numerous large-sized industries. SCM also provides access to precise real-time freight analytics and the flexibility to generate reports enabling large enterprises to make better business decisions such as supply planning, inventory planning, and distribution planning, among others. The market is growing due to a considerable increase in the requirement for software in large enterprises to collect essential business data such as inventory volumes, expected sales data, supplier details, and others. For instance, in November 2022, Microsoft announced the Microsoft supply chain platform launch and offered a demonstration of the platform via Microsoft Supply Chain Center. Microsoft's supply chain center is designed to be compatible with an organization's supply chain applications and data. Supply chain agility and stability are closely related to how well enterprises integrate and coordinate their data across all key platforms. The Microsoft supply chain platform lays the groundwork for major organizations to design or independently adopt solutions for specific supply chain needs spanning Azure, Microsoft Teams, Power Platform, and Dynamics 365.
The small and medium-sized enterprise (SMEs) segment is expected to experience the highest CAGR of 11.7% during the forecast.t period. SCM offers flexibility, scalability, and cost savings in supply chain operations. Implementing SCM solutions and services would increase SMEs' profitability and intended outcomes and improve operational efficiencies. Startups and SMEs were in a precarious situation as they struggled to control fluctuating demand, resource efficiency, and growing costs in the supply chain due to the COVID-19 pandemic. For instance, in April 2019, Locus, a global B2B SaaS company, announced the launch of QuickStart for small-scale enterprises (SMEs). QuickStart is a self-service version of the product suite designed to assist SMEs in enhancing their supply chain efficiency in the wake of the COVID-19 pandemic. With QuickStart, the company aims to provide customers with tools to improve and evaluate the situation.
Based on vertical, the global market has been segmented into retail & e-commerce, healthcare, automotive, transportation & logistics, food & beverages, manufacturing, and others. The manufacturing segment accounted for 23.1% of the market share in 2022 and is expected to dominate the target market during the forecastperiod owing to increase demand for automation in the supply chain process in the manufacturing industry. Manufacturers can improve their product manufacturing processes and lower operating costs by implementing a dependable SCM system. For instance, in March 2022, Logility, Inc. announced software advancements to enhance planning capabilities across the product lifecycle. Manufacturing clients of Logility's digital platform can analyze the global relationships of their integrated supply chain via supply chain network maps.
The retail and e-commerce segment is expected to experience the highest CAGR during the forecast period. E-commerce SCM focuses on purchasing raw materials, manufacturing, and distributing the product at the right moment. It includes managing supply and demand, warehousing, inventory monitoring, order processing, and client delivery. SCM increases network transparency and helps monitor the performance of all activities in production, warehousing, and distribution. This enables even more comprehensive control and tracking of all operations, from procurement to final goods shipment to the end user. Furthermore, effective SCM assures on-time deliveries, which has a direct impact on customer interactions. E-commerce-based SCM can drastically cut manufacturing, and distribution costs, resulting in increased profitability.
North America accounted for the major market revenue share in 2022 and is estimated to dominate the market during the forecast period. The presence of a huge number of adopters of such software in the region and the fact that the region is advancing technologically contribute to the market growth. The presence of major key players such as IBM, Microsoft, Telus International, and Infor, among others operating in the region, is another key factor contributing to market growth. Therefore, due to the factors mentioned above, the usage of SCM software in North America is high and contributes more to revenue generation.
Asia Pacific is anticipated to register the highest growth during the forecast period. The growth of the market in the region is attributed to growing opportunities in the region along with various investments made in SCM.
Key Companies & Market Share Insights
To broaden their product offering, industry companies utilize a variety of inorganic growth tactics, such as partnerships, regular mergers, and acquisitions. For instance, in August 2021, With this strategic acquisition, A.P. Moller - Maersk's integrated logistics service gained a new level of e-commerce experience. Clients in the business-to-consumer segment of Maersk will be able to reach 75% of the U.S. direct-to-customer market in 24 hours and 95% of the U.S. in 48 hours. Clients of Maersk can now boost supply chain speed and service coverage to keep up with the e-commerce trend of U.S. consumers for faster delivery to households at a cheaper cost. The operating model and brand value of Visible SCM will boost Maersk's customers' e-commerce Logistics, allowing them to sell through any distribution platform, deliver in any method, and manage their supply chain operations efficiently. Some prominent players in the supply chain management market include:
Blue Yonder Group, Inc.
Coupa Software Inc.
Epicor Software Corporation
Supply Chain Management Market Report Scope
Market size value in 2023
Revenue forecast in 2030
CAGR of 11.1% from 2023 to 2030
Base year for estimation
2017 - 2021
2023 - 2030
Revenue in USD million and CAGR from 2023 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Component, deployment, enterprise size, vertical, region
North America; Europe; Asia Pacific; South America; and Middle East & Africa
U.S.; Canada; Mexico; U.K.; Germany; France; China; India; Japan; Brazil
Key companies profiled
SAP SE; Oracle; Blue Yonder Group Inc.; Infor; Manhattan Associates; Coupa Software Inc.; IBMl; Logility, Inc.; Korber AG; Epicor Software Corporation
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options
Avail customized purchase options to meet your exact research needs.Explore purchase options
Global Supply Chain Management Market Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global supply chain management market report based on component, deployment, enterprise size, vertical and region:
Component Outlook (Revenue, USD Million; 2017 - 2030)
Transportation Management System
Planning & Analytics
Warehouse & Inventory Management System
Procurement & Sourcing
Manufacturing Execution System
Professional Services(Video) Supply Chain Analytics Market Size and Share
Deployment Outlook (Revenue, USD Million; 2017 - 2030)
Enterprise Size Outlook (Revenue, USD Million; 2017 - 2030)
Small and Medium Sized Enterprises
Vertical Outlook (Revenue, USD Million; 2017 - 2030)
Retail & E-commerce
Transportation & Logistics
Food & Beverages
Regional Outlook (Revenue, USD Million; 2017 - 2030)
Mexico(Video) Global EV Outlook 2022: Technical Webinar
Middle East & Africa
Frequently Asked Questions About This Report
How big is the supply chain management market?
b. The global supply chain management market size was estimated at USD 21,129.2 million in 2022 and is expected to reach USD 23,265.4 million in 2023.
What is the supply chain management market growth?
b. The global supply chain management market is expected to grow at a compound annual growth rate of 11.1% from 2023 to 2030 to reach USD 48,586.3 million by 2030.
Which region accounted for the largest supply chain management market share?
b. North America dominated the supply chain management market with a share of 40.6% in 2022. The presence of a huge number of adopters for such software in the region along with the fact that the region is technologically advanced are contributing to the market growth. The presence of major key players operating in the region is another key factor contributing to market growth.
Who are the key players in the supply chain management market?
b. Some key players operating in the supply chain management market include SAP SE; Oracle; JDA; Infor; Manhattan Associates, Inc.; Coupa Software; IBM; Logility, Inc.; Korber AG; Epicor Software Corporation.
What are the factors driving the supply chain management market?
b. Key factors that are driving the supply chain management market growth include rising demand and increased awareness of the benefits of SCM solutions, such as transportation management systems, planning & analytics, forecasting accuracy, warehouse & inventory management, supply chain optimization, procurement & sourcing, waste minimization, manufacturing execution and relevant synthesis of business data. Additionally, the rapidly growing adoption of information technology and technical breakthroughs improves and supports the overall supply chain are contributing to the market expansion.
How big is the market of supply chain? ›
Report Overview. The global supply chain management market size was valued at USD 21,129.2 million in 2022 and is expected to expand at a CAGR of 11.1% from 2023 to 2030.What are the 3 main goals of supply chain management? ›
- Improving Efficiency. Efficiency refers to the minimization of waste. ...
- Improving Quality. Reducing waste isn't the only goal of supply chain management. ...
- Improving Stability. ...
The Global Supply Chain Management Market Size was valued at USD 16.64 billion in 2021 and is expected to reach at a CAGR of 10.8% from 2021 to 2030, as per the latest research report by Spherical Insights & Consulting.What market size is big enough? ›
Market Opportunity is an important metric for estimating the long-term potential for an early stage company. Typically, we invest in companies that are going after market sizes of at least $100M. At that size, a market is large enough to support a $25M+ company.What is the biggest problem in supply chain? ›
- Material Shortages. ...
- Lack of Supply Chain Visibility. ...
- Demand Forecasting Complexity. ...
- Supply Chain Fragmentation. ...
- Congestion at Critical Ports. ...
- Increasing Transportation and Freight Costs. ...
- Digital Transformation and Integration.
There are four pillars of supply chain operational risk—supply, demand, process and environmental ecosystems. Knowing how to identify and manage these risks is key to building a supply chain that is resilient and able to adapt to today's fast-moving, ever-changing landscape.What are the three C's of supply chain? ›
The Three C's of Transporting Consumer Packaged Goods: COVID, Change, and Costs. Consumer packaged goods (CPG) supply chains are highly susceptible to disruptions that often lead to increased expenses.How do you determine market size in industry? ›
- Define your target customer.
- Estimate the number of target customers.
- Determine your penetration rate.
- Calculate the potential market size: Volume and value.
- Apply the market-size data.
The "market size" is made up of the total number of potential buyers of a product or service within a given market, and the total revenue that these sales may generate. It's important to calculate and understand market size for several reasons.What are the 3 main factors that contribute to supply chain disruptions? ›
- 1). Inefficient response to technology trends. ...
- 2). Natural or environmental occurrences. ...
- 3). Inaccurate planning and forecasting. ...
- 4). Shifts in governmental regulations. ...
- 5). Fluctuations in transport costs.
What are the 7 key issues of supply chain management? ›
- Quality Customer Service. The supply chain management is centralized on the needs of the customers. ...
- Costing. ...
- Risk Management. ...
- Supplier Relationship. ...
- Qualified Personnel. ...
- Unforeseen Delays. ...
- Fast-Changing Markets.
By looking at a firm's market share, we try to understand how much of a particular industry (or market) is 'owned' or dominated by that one specific firm. It is measured by dividing the firm's total sales by the market's total sales. Market size measures the total sales generated by selling a product.What are the 5 strategies that will determine the market size? ›
- Seeing the business horizon.
- Define your subsegment of the market.
- Conduct top-down market sizing.
- Follow with bottom-up analysis.
- Look at the competition.
- Assess the static market size.
You should aim for around 1% to 5% as a realistic goal over the first few years as a start up, unless you're first to market with a new product or there are few or no existing competitors in your market. Investigate competitors – Find out who is supplying the market and their turnover.What do think are the three biggest challenges facing today's supply chains? ›
Among the most common supply chain challenges in 2021 and 2022 were things like port congestion, manufacturing delays, and extreme weather events (including hurricanes, tornadoes, wildfires, and more).Why there is a problem in supply chain in us? ›
The coronavirus pandemic initially shut down major economies, leaving companies understaffed and unprepared for the explosion of demand that followed, making products scarcer and more expensive. Soaring inflation is now forcing consumers to spend less, slowing demand and helping supply chains recover.Why are supply chains struggling? ›
Shifts in consumer activity.
Since families began spending more time sheltering at home, they spent more on purchasing goods relative to services, thereby adding increased strain to the supply chain.
- Purchasing. The first function of supply chain management is purchasing. ...
- Operations. ...
- Logistics. ...
- Resource Management. ...
- Information Workflow.
Supply Chain includes purchasing, manufacturing, warehousing, transportation, customer service, demand planning, supply planning and Supply Chain management.
What are the 6 supply chain models? ›
- Continuous Flow. This is one of the most traditional models on the list. ...
- Fast chain. The fast chain model is one of the new names in supply chain strategies. ...
- Efficient Chain. ...
- Agile. ...
- Custom-configured. ...
Purpose. In 2004 Lee proposed that successful supply chains must be agile, adaptable, and aligned and described those chains as “Triple‐A” supply chains.What are the 3 pillars of SCM make vs buy strategy? ›
This report explores the dynamics of make-or-buy decisions and presents a framework to help companies make the right decisions. The framework is built on three key pillars — business strategy, risks, and economic factors.What are the six 6 components of supply chain management? ›
CIO, the business magazine from Boston's International Data group, have identified six core components of good SCM: Planning, Sourcing, Making, Delivering, Returning, and Enabling.What are 3 hard skills that a good supply chain professional need? ›
Solid skills required in future supply chain managers include: Project management. Technical understanding. Cost accounting skills.Is supply chain in high demand? ›
Procurement, Logistics, and Supply Chain Management are some of the fastest growing fields nationwide. According to the U.S. Bureau of Labor Statistics, employment of logisticians is projected to grow 30 percent from 2020 to 2030, much faster than the average for all occupations.
The supply chain has indeed become a critical part of today's business. Initially associated with only manufacturing firms, it is now an integral part of all enterprises, especially in the online sale business. There are huge scope and demand for talented professionals in these industries, and they are also paid well.Is supply chain bigger than logistics? ›
Supply chain has broader scope than logistics: Supply chain is about creating an uninterrupted, cost-effective flow between consumer demand and the delivery of finished goods. Logistics is about planning and organizing operations to ensure supply chain and commerce processes run smoothly.Which is bigger demand or supply? ›
Excess Demand: the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage. Excess Supply: the quantity demanded is less than the quantity supplied at the given price.Is there a future in supply chain? ›
As such, supply chain real-time decision execution adoption will increase 5x by 2028. With the right supply chain technology, analytics and skills, the future supply chain will automate execution and improve performance across the end-to-end value chain.
Is supply chain getting worse or better? ›
A recent survey from the Food Industry Association (FMI), a trade organization that represents food retailers and wholesalers, found that 70% of retailers said supply chain disruptions are negatively impacting their business, up from 42% the year before.How long will the supply chain last? ›
Most supply chain managers expect problems to continue at least through 2024. More than half of logistics managers surveyed by CNBC do not expect the supply chain to return to normal until 2024 or after. The dour outlook comes after almost three years of global supply chain problems.What is the biggest supply chain company? ›
|4||Johnson & Johnson|
According to Gartner, the best companies for a supply chain management career in 2022 include Cisco Systems, Schneider Electric, Colgate-Palmolive, Johnson & Johnson, and PepsiCo.What is the next big trend in logistics? ›
Keep Your Logistics Processes Current
Demands for real-time data. Supply chain transparency for critical collaborations. Less Than Truckload Demand. Digitally Evolving Business.
Why is supply chain management important? Effective supply chain management systems minimize cost, waste and time in the production cycle. The industry standard has become a just-in-time supply chain where retail sales automatically signal replenishment orders to manufacturers.What happens to supply when price increases? ›
The law of supply states that there is a direct relationship between price and quantity supplied. In other words, when the price increases the quantity supplied also increases. This is represented by an upward sloping line from left to right.What happens if there is too much supply than demand? ›
It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged.What factors affect supply and demand? ›
Factors such as taxes and government regulation, the market power of suppliers, the availability of substitute goods, and economic cycles can all shift the supply or demand curves or alter their shapes.