The supply chain applications market grew at a healthy 7.1% rate in 2012 as manufacturers drove greater visibility into variations on demand linked with the challenges of supply. With increased volatility in consumer patterns and market shifts, driven by fluctuating gas prices and commodities, leading organizations continue to invest in the latest tools and technologies to make better supply chain decisions and run their factories and distribution at the highest levels of operational performance.
Seeing Around Corners: The top suppliers 3 software providers occupy half of the market according to a recent estimates by a leading analyst firm*.
· SAP $1.7B revenues
· Oracle $1.5B
· JDA $0.4B
The list drops off fairly early for the next tier of niche providers for those that offer products for the remaining half of the SCM market. Other popular firms in the space include IBM, Manhattan, Epicor and Infor.
Trends: Noticeable movement is taking place in the supply chain community as organizations are transforming their operations into modern collaborative Value Chain Networks. Experts identify an emerging convergence in the software applications to operate in unison with each other. Silos are being torn down, and now interconnected with their expanded eco-system as the valuable information resident in one silo is pertinent to decisions in another silo. Best in class supply chains allow trading partners to share their operational plans and processes on a daily basis to respond to sudden shifts in the market.
Market Consolidation: Red Prairie Buys JDA in 2012, a competitor 4 times its size. Analysts predict further consolidation in the market as buyers want a fully integrated ERP/SCM platform upon which to drive better business decisions. Having synergy across, through and around the product supply chain portfolio become a differentiator.
* Source: Modern Materials Handling, July 2013 edition, pgs. 32-36.