Supply Chain Management solutions market to grow to $6 billion in 2006

Spending growth on supply chain management (SCM) software solutions will more than double this year, from 3 percent in 2005 to 7 percent this year, according to an AMR Research report.

The total market for SCM solutions will grow to $6 billion this year, compared with $5.6 billion in 2005. (via AMR Research expects the market for SCM solutions to continue growing at a 6 percent compounded annual growth rate through 2010, when it will be worth $7.4 billion.

Report Highlights:
  • Previous generations of SCM solutions were technology-driven, but vendors are now focusing more on actual business pain points.
  • Companies now see the need for more real-time information from their suppliers and channel partners to offset unfavorable macroeconomic trends.
  • Within SCM, sales of inventory optimization solutions will grow by 35 percent this year and network design solutions will grow by 21 percent.
  • Top Market share leaders: SAP (12%), Oracle (10%, i2 (5%) and Manhattan Associates (4%).
  • Smaller vendors like Vision Chain and TrueDemand are using data from RFID sensors and advanced demand planning solutions to give companies more immediate visibility of customer demand and actual inventory levels.

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