scm
Supply chain software as a service!
Filed in archive Market Overview by ehsan on February 14, 2008
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You have definitely heard of the existing hype on the "Software as a Service". The current market which started by companies such as Siebel or Workforce.com in CRM area, now constitutes 5% of the market for business software and it is growing around 20% per year. But the question is: Will the scope cover supply chain as well?

Here is my answer based on a brief review of the opinions in the SCM space:

- YES. We will see in the next five years some early versions of supply chain software delivered online. Probably the early versions cover areas such as fulfillment (in applications such as tracking, service delivery, Available to Promise, Profitable to promise and so on) and then solutions in basic forecasting, and inventory planning.

- However, the adoption rate from companies will be lower than software offering growth and this may lead to a mid-term consolidation wave. This outcome is more or less expectable: The software companies want to tap into a new era but it takes time for the companies to trust such solutions. In a recent article in Wall Street Journal I read that tech managers' first priority is company needs and online solutions are too basic to meet those needs. It also takes time for companies to feel comfortable with their data being managed outside company.

- At the end (probably 10 years from now), as software makers go through the experience curve and companies change their mentality, this market reach stability.

What do you think? Do you agree?



Permalink: Supply chain software as a service!
Tags: Supply  chain  software  management  paradigm  as  a  service  market  overview  growth  future  potential  suppl 
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