Supply chain tech market growing, AMR founds

Filed in archive Research on November 24, 2008

Despite financial crisis and economic downturn, supply chain technology market will grow about 7% in the upcoming 5 years.

AMR Research released a study last week that estimates the $6.5B market will reach up to $9.2B in 2012. According to AMR analysts, the current economic problems are actually one of the reasons for this market to grow, namely:

- High inflation - Inflation will force supply chain managers to play an important role in protecting product and company margins through cost control and increased efficiencies in their operations.

- Rising commodity prices - Pressure from higher commodity prices will bring supply more in line with demand and reduce inventory levels from raw materials to the finished product.

- Threats to brand security - Counterfeiting, the gray market, and questionable quality standards will make brand protection a top priority. Companies will look to adopt risk mitigation and global trade technologies as well as analytics to monitor distribution channel buy-and-sell patterns.

- Sustainability becomes a component of corporate decision making public sentiment will force substantive measures by industry to become more environmentally friendly. This will present opportunities to more directly connect product development efforts with supply chain management to minimize waste and material usage.

- Cash is king - Capital spending will come under great scrutiny as companies preserve cash. Technologies that increase the velocity of cash collection, including B2B e-commerce, will become a critical component of future initiatives.