Supply Chain Execution Market is growing by 10%
Filed in archive Market Overview by ehsan on September 16, 2007
The worldwide market for SCE is expected to grow at a compounded annual growth rate (CAGR) of 9.9 percent over the next five years. The market was $4.6 billion in 2006 and is forecasted to be over $7.4 billion in 2011, according ARC. Supply chain execution includes collaborative production management
for process (CPM-P) and discrete (CPM-D) industries, transportation management systems (TMS), and warehouse management systems (WMS)."It is surprising how fragmented this market remains," according to Steve Banker, Ph.D., service director for Supply Chain Management at ARC Advisory Group. "There are over 250 suppliers. In 2006, the top 10 suppliers' shares of the total market had barely changed from 2003, despite the fact that virtually all of the top 10 suppliers had made SCE acquisitions."

A Diverse Market
SCE is a diverse market composed of enterprise resource planning (ERP), best-of-breed, and automation suppliers. Automation suppliers mainly offer production management applications. An analysis of market share gains and losses among the top 10 vendors by type of supplier shows that ERP and automation companies have gained market share at the expense of best-of-breed suppliers.
Historically, ERP suppliers' SCE applications were not as functionally rich as those offered by best-of-breed suppliers. However, because they were integrated to the rest of their applications, they could argue that they better supported holistic process flows and could provide better visibility to key executives who used their SCE applications. Further, their solutions often have a lower total cost of ownership (TCO).
The largest automation suppliers have also done well. The most successful of these suppliers provide total solution's capabilities that include consulting and technology, which spans across hardware automation to consulting services. They frequently have very deep domain expertise in core manufacturing verticals.
(Source: Supply and Demand Chain Executive Magazine)
Permalink: Supply Chain Execution Market is growing by 10%
Tags:
supply chain execution market increase software scm logistics arc advisory overview erp diverse 200
Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/91919







