Appolis, Inc.

The Emergence of SaaS in the Supply Chain Management Market

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According to this article, Since 2005, the Supply Chain Management (SCM) market (including Supply Chain Execution —production, warehouse, and transportation management — as well as Supply Chain Planning — strategic, manufacturing, and inventory planning) has grown at a 7 percent Compound Annual Growth Rate (CAGR).  And the growth rate would have been much higher were it not for the global economic downturn that started pinching in 2008 and hit with full force in 2009.  However, during that time frame, Software-as-a-Service (SaaS) based SCM solutions grew by a CAGR in excess of 20 percent.    

SaaS is no doubt becoming increasingly popular in all types of businesses. As we struggle through these tough economic times, SaaS gives business owners lower costing business solutions that help maintain vital processes. It was only a matter of time that it would break through to the SCM market. Here’s a closer look into specific areas that are being affected…in a good way:

  • Transportation Management Systems (TMS): In TMS, SaaS solutions win not just because of lower price points, but also because it leverages the power of the network and ability to be mobile.
  • Supply Chain Planning: In Supply Chain Planning, SaaS solutions decrease costs and reduce complexities associated with the planning process.
  • Warehouse Management Systems (WMS): In WMS, SaaS solutions give real time visibility into your inventory while keeping the costs at a minimum.

As you can see, a similar theme throughout the industries is the lower cost and if SaaS keeps growing like it is, it is sure to give our economy the boost it desperately needs.

By Steve Dwyer of Appolis, Inc., a leading warehouse management Microsoft Dynamics ISV Partner.

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