Global Supply Chain Management Software Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2024-2032)

Global Supply Chain Management Software Market Outlook

The booming e-commerce sector and the increasing cross-border trade are bolstering the supply chain management software market growth. As per the International Trade Administration (ITA), global B2B e-commerce revenue is projected to reach USD 5.5 trillion by 2027. This is expected to surge the demand for real-time visibility, order fulfilment, inventory management, and global logistics coordination, boosting the usage of supply chain management (SCM) software among online retailers. The market expansion is also being driven by technological advancements, evolving business needs, and changing global trade dynamics. There is an increasing emphasis on sustainability within supply chains. SCM software is evolving to include features that help businesses monitor and reduce their environmental impact, comply with regulatory requirements, and meet consumer demands for ethical and sustainable practices.

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Global Supply Chain Management Software Market Trends

Growing Focus on Sustainability

Supply chains are responsible for nearly 60% of global carbon emissions, reinforcing the need to minimise negative social and environmental impacts of supply chain operations. With governments globally also implementing stringent environmental regulations and consumers increasingly demanding eco-friendly products, the focus on making supply chains more sustainable is further surging. SCM solutions are integrating innovative features to monitor and manage environmental impact, ensuring supply chain practices align with sustainability goals and regulatory compliance. Various SCM solutions also enable companies to sustainably source components and materials from suppliers, optimise production, warehouse operations, and transportation to lower energy waste and usage. Moreover, by integrating waste tracking, returns management, and recycling workflows, SCM software empowers businesses to implement circular economy practices. The development of closed-loop supply chains where end-of-life products are remanufactured and returned also propels the supply chain management software market expansion.

Global Supply Chain Management Software Market Drivers

Integration of AI and ML in Supply Chain Management Software

The growing integration of artificial intelligence (AI) and machine learning (ML) in supply chains is shaping the supply chain management software market trends and dynamics. AI and ML-powered SCM software enables businesses to maximise visibility, accelerate efficiency, improve decision-making, and mitigate risks. In May 2024, Sawaca Business Machines Ltd. partnered with TCS Information Technology to develop an advanced AI-based Supply Chain Management (SCM) software to enhance supply chain efficiency in the Gulf region. Furthermore, advancements in generative AI are expected to revolutionise supply chain management, improving forecast accuracy, reducing logistics costs, optimising route, inventory, and delivery, and automating decision-making in complex supply chain scenarios.

Global Supply Chain Management Software Market Dynamics

Rise in Usage of Blockchain for Enhanced Transparency

The integration of blockchain technology into SCM solutions is revolutionising the supply chain management software market landscape. With businesses and regulators increasingly demanding transparency related to the origins, handling, and movement of goods, especially in sectors such as automotive, pharmaceuticals, and food and beverage, the demand for blockchain-integrated SCM software is increasing. By streamlining processes like payments, contract management, and inventory tracking, blockchain reduces administrative overhead, lowers overall costs associated with supply chain management, and speeds up transactions.

Market News

February 2024

FreightWaves SONAR announced a strategic partnership with e2open to integrate the former’s leading TRAC spot rate and contract rate data directly into e2open’s Transportation Management System (TMS). Through this, shippers can streamline workflows and make informed decisions and cost optimisation.

December 2023

Blue Yonder launched Blue Yonder Orchestrator, a generative AI capability that enables companies to make smarter and faster decisions more accurately. It also allows companies to facilitate predictive insights and intelligent decisions while enabling them to quickly access recommendations.

Global Supply Chain Management Software Market Growth

The global supply chain management software market is evolving with a growing focus on sustainability and innovation. As supply chains contribute to nearly 60% of global carbon emissions, companies are increasingly adopting SCM solutions to minimise environmental impacts, comply with regulations, and meet consumer demand for eco-friendly practices. These solutions enable sustainable sourcing, energy optimisation, and waste tracking, fostering circular economy practices like remanufacturing and recycling. Additionally, the integration of AI and ML is transforming SCM software, enhancing visibility, efficiency, and decision-making. AI-powered systems improve forecast accuracy, reduce costs, and automate complex tasks, revolutionising operations across industries. Blockchain technology is also gaining traction, enhancing transparency in sectors like pharmaceuticals and food. By providing secure, immutable records, blockchain reduces fraud, simplifies contract management, and accelerates transactions, making SCM processes more efficient and trustworthy.

Global Supply Chain Management Software Market Restraints

The growth of the supply chain management software industry can be restrained by the high costs associated with the implementation of SCM software, especially for large businesses with complex supply chains. SCM solutions also require regular system upgrades, software updates, and support services, which can add to their total ownership costs. With SCM software handling sensitive data related to inventory, suppliers, finances, and customer transparency, it can expose businesses to cyberattacks and lead to privacy concerns. Moreover, off-the-shelf SCM software solutions lack the customisation requirements for businesses with highly specific or complex supply chains, limiting the market.

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Global Supply Chain Management Software Industry Segmentation

The EMR’s report titled “Global Supply Chain Management Software Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Solution
• Services

Market Breakup by Solution Type

• Transportation Management System
• Warehouse Management System
• Supply Chain Planning
• Procurement and Sourcing
• Manufacturing Execution System

Market Breakup by Deployment Model

• On-Premise
• On-Demand/Cloud-Based

Market Breakup by Organisation Size

• Small and Medium Sized Enterprises
• Large Enterprises

Market Breakup by End Use

• Retail and Consumer Goods
• Healthcare and Pharmaceuticals
• Manufacturing
• Food and Beverages
• Transportation and Logistics
• Automotive
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Supply Chain Management Software Market Share

By Component Insights

In the global supply chain management software market, services are experiencing particularly strong expansion. This growth is driven by the increasing complexity of supply chains and the demand for customised implementation, integration, consulting, and support services. As companies seek to optimise their supply chain operations with advanced SCM software, there is a growing need for professional services to ensure these systems are effectively integrated into existing IT infrastructure, adapted to specific business processes, and utilised to their full potential.  This trend reflects a broader shift towards service-oriented models in the tech industry.

Meanwhile, the growth of the solutions segment is fuelled by technological advancements, such as AI, IoT, blockchain, and cloud computing, which are enhancing the capabilities of SCM software. These technologies enable more sophisticated analytics, real-time tracking, and greater scalability, providing businesses with the tools they need to respond to market changes rapidly and manage increasingly complex global supply chains.

By Solution Type Insights

As per the supply chain management software market analysis, transportation management systems (TMS) optimise the movement of goods across the supply chain while automating key processes such as carrier selection, route planning, shipment tracking, and freight audit. The rising demand for real-time visibility and the integration of AI, IoT, and ML in TMS to predict delivery times and improve operational efficiency are boosting the segment’s growth. In September 2023, 3SC Solutions announced the launch of its iTMS (Intelligent Transport Management Solution) for planning, setting, and executing end-to-end transportation to improve logistics.

Conversely, warehouse management systems (WMS) help businesses optimise and manage warehouse operations such as order picking, inventory management, and shipping, improving order fulfilment, lowering inventory errors, and enhancing warehousing efficiency. The shift towards automation in warehousing operations is boosting the supply chain management software market revenue.

Meanwhile, supply chain planning solutions support businesses to use market trends, historical data, and machine learning algorithms to predict future demand for products, plan production schedules based on demand forecasts, and optimise inventory management and resource allocation.

By Deployment Model Insights

On-premise supply chain management software is installed and run on a company’s premises, and requires it to manage the hardware, software, and updates on IT infrastructure. Through this deployment model, companies retain full control over their security, data, and compliance. Some benefits of on-premise SCM software are enhanced flexibility and improved security.

Meanwhile, under the cloud-based or on-demand model, vendors handle the infrastructure, updates, and security of SCM software. Lower upfront costs, scalability, rapid deployment, automated updates and maintenance, and improved accessibility offered by this deployment model are creating lucrative supply chain management software market opportunities.

By Organisation Size Insights

As large organisations operate on a global scale and manage multi-tiered and complex supply chains, the demand for SCM software that can handle multiple suppliers, high volumes of data, and international logistics is increasing. The rising demand for advanced SCM solutions that provide predictive analytics, end-to-end visibility, and real-time decision-making is driving the supply chain management software market expansion.

Meanwhile, small and medium-sized enterprises (SMEs) typically deploy cloud-based SCM software due to their ease of implementation, cost-effectiveness, minimal IT overhead, and lower initial investments. The growing focus on improving inventory accuracy, optimising order fulfilment, streamlining procurement processes, and enhancing delivery and shipping processes among SMEs is fuelling the supply chain management software demand forecast.

By End Use Insights

Based on end use, the retail and consumer goods segment is anticipated to hold a significant share of the supply chain management software market in the forecast period. This growth can be attributed to the increased preference for online shopping among consumers. This is pushing leading consumer goods companies to invest in streamlining and automating various business operations to meet the rising demand and ensure speedy and secure processing and delivery of goods to consumers.

In the food and beverage sector, consumers are demanding information about the ingredients, animal welfare, food fraud, and child labour in supply chain operations. Moreover, they are willing to pay more for products from the companies that provide transparency, in terms of information in their business operations.

Meanwhile, other sectors such as healthcare, pharmaceuticals, and manufacturing rely heavily on SCM software for streamlining production processes and quality control. The increasingly stringent regulatory compliance is positively influencing the supply chain management software market growth.

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Global Supply Chain Management Software Market Regional Insights

North America Supply Chain Management Software Market Overview

The supply chain management software demand growth in North America is being aided by the presence of leading companies such as SAP, Oracle, Blue Yonder, and Manhattan Associated, among others, in the United States and Canada, coupled with rapid technological advancements. The robust growth of the e-commerce sector in the region also fuels the market expansion. As of 2024, the United States boasted 273.49 million online shoppers, marking a y-o-y increase of 5.6%. Similarly, more than 27 million Canadians, or nearly 72.5% of Canada’s population, are e-commerce users. SCM software is essential for last-mile delivery challenges, optimising inventory management across multiple channels and streamlining order fulfilment processes.

Asia Pacific Supply Chain Management Software Market Dynamics

Rapid economic development and urbanisation in countries such as India, China, Japan, and South Korea are favouring the Asia Pacific supply chain management software market outlook. Governments, especially in India and China, are actively investing in infrastructure development activities and manufacturing capabilities, boosting the requirement for SCM software. In August 2024, the Indian government approved 12 new smart city projects, with an investment of USD 3.41 billion to strengthen its manufacturing sector and reshape its economic landscape. Furthermore, growing geopolitical tensions are pushing businesses in the region to improve their supply chain resilience and effectively manage risks. This is surging the demand for SCM solutions that can provide supplier performance, inventory levels, and potential disruptions to ensure business continuity.

Middle East and Africa Supply Chain Management Software Market Trends

As per the supply chain management software market regional analysis, the increasing importance of supply chain visibility is aiding the market. With rapid digital transformation in the region, cloud-based SCM software that can reduce costs, streamline operations, and enhance the speed and accuracy of decision-making is gaining popularity. The development of airports, ports, highways, and logistics hubs in the region amid increasing investments in smart cities and infrastructure development is propelling the market. In August 2024, Maersk, along with the General Ports Authority of Saudi Arabia ‘Mawani’, announced the opening of the largest Logistics Park for Maersk in the Middle East at Jeddah Islamic Port.

Competitive Landscape

Key supply chain management software market players are incorporating advanced technologies such as machine learning, AI, IoT, and robotic process automation (RPA) into SCM software to support companies reduce risks, predict future trends, and improve the accuracy of supply chain decisions. They are also offering solutions that provide end-to-end visibility across the supply chain, leading to enhanced collaboration with manufacturers, suppliers, and customers.

Key Industry Players

Epicor Software Corporation

Epicor Software Corporation, founded in 1972, is a prominent provider of supply chain management (SCM) and enterprise resource planning (ERP) solutions. Headquartered in Texas, the United States, the company supports businesses to improve efficiency, streamline operations, and accelerate growth. Its solutions are used for different end-use sectors such as retail, manufacturing, services, and distribution.

HighJump Software Inc.

HighJump Software Inc., headquartered in Minnesota, United States, is a leading provider of supply chain management solutions and warehouse management solutions. Established in 1983, the company is renowned for its scalable, flexible, and industry-specific solutions that serve both large and small businesses.

Blue Yonder Group, Inc.

Blue Yonder Group, Inc., established in 1985 and headquartered in Arizona, United States, is a leading provider of cloud-based supply chain management software, including supply chain planning, execution, delivery, and retail merchandising. Some of its prominent products and solutions include Luminate Platform, Luminate Demand, Luminate Warehouse Management, and Luminate Inventory Management, among others.

Other key players in the supply chain management software market are Ansys Inc., SAP SE, Oracle Corp, Siemens AG, Infor, The Descartes Systems Group Inc, e2open, LLC, IBM Corporation, Accenture plc, Amazon Web Services Inc., and Coupa Software Inc., among others.

Recent Developments

November 2024

Jabil Inc. and Cyferd Inc. announced a joint venture, ID8 Global, to revolutionise supply chain management through its generative AI-driven software platform. The platform empowers businesses to autonomously manage multi-tiered and complex supply chains with enhanced precision and speed.

July 2024

Bigbasket announced BB Matrix, a software-as-a-service (SaaS)-based supply chain platform to support existing and new e-commerce companies to manage their supply chains and operations. The platform aims to support businesses to lower transportation costs by 50%, reduce lead time by 60%, and ensure nearly 100% supply chain visibility.