In 2016, the top 10 SCM software vendors accounted for nearly 60% of the global SCM market which grew 4.8% to approach nearly $7.6 billion in license, maintenance and subscription revenues.
Last year SAP led the pack with a 19% market share and nearly $1.5 billion in license, maintenance and subscription revenues. In 2016, Oracle was No. 2, followed by JDA Software, Manhattan Associates and Infor. In 2015, the top five were SAP, JDA, Oracle, Infor, and Descartes.
Through our forecast period, the SCM applications market is expected to reach $8.4 billion by 2021, compared with $7.6 billion in 2016 at a compound annual growth rate of 2.1%.
| Exhibit 2: Worldwide SCM Software Market 2016-2021 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 7602 | 8418 | 2.1% |
Source: Apps Run The World, December 2017
SCM Market Definitions And Forecast Assumptions
Supply chain management covers Inventory Optimization (Warehouse Management, Replenishment), Transportation and Logistics (Routing, Scheduling, Carrier/Fleet/Fuel Management), Planning (Advanced Planning and Scheduling, Forecasting, Supply Chain Planning through Execution), Distribution Management (Order Orchestration, Management, Global Trade Management), E-Commerce (POS, Store Inventory & Fulfillment, EDI).
Internet of Things, global trade management are considered growth drivers, offset by retailing woes.
Top 10 SCM Software Vendors
Here are the rankings of the top 10 SCM software vendors in 2016 and their market shares.
| Vendor Name | 2015 Supply Chain Management Apps Revenues, $M | 2016 Supply Chain Management Apps Revenues, $M | YoY Growth | 2016 Supply Chain Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|
| SAP | Subscribe | Subscribe | Subscribe | Subscribe | SAP S/4 HANA now offers full-blown SCM capabilities. |
| Oracle | Subscribe | Subscribe | Subscribe | Subscribe | In 2017, Oracle added eight products and 200 new features including maintenance and supply chain collaboration to its SCM Suite in the Cloud. |
| JDA Software Group, Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Reported double-digit product growth across its SCM applications in 3Q17. |
| Manhattan Associates | Subscribe | Subscribe | Subscribe | Subscribe | In the midst of a turnaround, Manhattan braces for fallout from a shifting retail environment. |
| Infor | Subscribe | Subscribe | Subscribe | Subscribe | Infor unveiled Coleman, its AI play for helping companies better manage different business processes including procurement. |
| Descartes Systems Group | Subscribe | Subscribe | Subscribe | Subscribe | Acquired MacroPoint for electronic transportation network and ShipRush for e-Commerce Shipping in 2017 after buying a number of supply chain messaging developers. |
| FleetMatics, a Verizon Company | Subscribe | Subscribe | Subscribe | Subscribe | Acquired by Verizon in 2016. |
| Dassault Systemes | Subscribe | Subscribe | Subscribe | Subscribe | Acquired Exa software in September 2017 for designers to evaluate highly dynamic fluid flow throughout the design process. |
| SPS Commerce, Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Its EDI network covers 70,000 companies in different verticals. |
| IBM | Subscribe | Subscribe | Subscribe | Subscribe | IBM is positioning its Sterling B2B order-management products as part of Watson Commerce family. |
| Other | Subscribe | Subscribe | Subscribe | Subscribe | |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | |
| Total | 7251 | 7602 | 4.84% | 100.00% |
Source: Apps Run The World, December 2017
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.
Exhibit 4: Worldwide Enterprise Applications Market Forecast 2016-2021, By Functional Market, $M
SCM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in SCM applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest SCM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
| Vendor | Customer Win | Industry | No. of employees | Revenue, $M | Old Product | New Product | Wins in |
|---|---|---|---|---|---|---|---|
| Amber Road | AeroTurbine | Airlines & Aviation | 355 | 300 | Legacy System | Amber Road Export On-Demand | 3Q15 |
| Amber Road | Amway | Consumer Goods | 21000 | 9500 | Legacy System | Amber Road’s Supply Chain Visibility | 3Q15 |
| Amber Road | Axalta | Automotive | 12800 | 4100 | Legacy System | Amber Road Export On-Demand | 4Q15 |
| Amber Road | Danieli Group | Mechanical or Industrial Engineering | 10000 | 3000 | Legacy System | Amber Road Export On-Demand | 2Q16 |
| Amber Road | Heraeus | Chemicals | 12477 | 1929 | Legacy System | Global Product Master | 1Q16 |
| Amber Road | Jacobs Douwe Egberts | Food & Beverages | 7500 | 5000 | Legacy System | Amber Road Export On-Demand | 3Q15 |
| Amber Road | Mercury Marine | Consumer Goods | 6200 | 2300 | Legacy System | Foreign-Trade Zone (FTZ) software | 4Q15 |
| Amber Road | Nexteer | Automotive | 12000 | 2400 | Legacy System | China Trade Management | 1Q16 |
| Amber Road | Siemens | Electronic Manufacturing | 348000 | 75600 | Legacy System | China Trade Management | 4Q15 |
| Descartes Systems Group | American Airlines (AA) Cargo | Logistics and Supply Chain | 1500 | 760 | Legacy System | Descartes Global Logistics Network | 2Q16 |
| Descartes Systems Group | Graff Diamonds | Luxury Goods & Jewelry | 500 | 500 | Legacy System | Descartes’ cloud-based Import Customs Solution | 2Q16 |
| Descartes Systems Group | Marks & Spencer | Retail | 83069 | 10300 | JDA Merchandise Planning System – EP | Descartes’ cloud-based Import Customs Solution | 1Q16 |
| Descartes Systems Group | NSK Europe Ltd. | Machinery | 3500 | 1000 | Legacy System | Descartes Transportation Manager | 2Q15 |
| Descartes Systems Group | Rotech Healthcare | Hospital & Health Care | 4000 | 500 | Legacy System | Descartes’ cloud-based Route Planner | 1Q16 |
| FleetMatics | An Post | Utilities | 10024 | 820 | Tranman, Oracle JD Edwards, Telematics | FleetMatics REVEAL Plus | 1Q16 |
| FleetMatics | Brink’s France | Logistics and Supply Chain | 59420 | 3061 | Legacy System | FleetMatics REVEAL Plus | 1Q15 |
| FleetMatics | DirecTV | Satellite television | 243620 | 146800 | SAP APO Demand Planning | FleetMatics REVEAL Plus | 2Q15 |
| FleetMatics | KRD Trucking | Trucking | 1000 | 100 | Legacy System | FleetMatics REVEAL Plus | 4Q15 |
| FleetMatics | TNT Crane & Rigging | Construction | 1500 | 305 | Legacy System | FleetMatics REVEAL Plus | 1Q16 |
| HighJump | Ashley Furniture Industries | Furniture | 22582 | 3850 | Logility 7.0 | HighJump WMS | 3Q15 |
| HighJump | Expolanka Holdings | Transportation | 2700 | 833 | Legacy System | HighJump WMS | 4Q15 |
| HighJump | Parts Town | Food service parts | 250 | 100 | Legacy System | HighJump WMS | 2Q15 |
| HighJump | Rheem Mexico | Consumer Goods | 7000 | 2000 | Legacy System | HighJump WMS | 2Q16 |
| HighJump | WAIglobal | Manufacturing | 650 | 100 | Legacy System | HighJump WMS | 3Q15 |
| IBM | Bemol | Retail | 2100 | 500 | Legacy System | IBM Sterling Order Management | 2Q16 |
| IBM | JFE Steel Corporation | Mining & Metals | 43874 | 30000 | Legacy System | IBM Sterling Order Management | 3Q15 |
| IBM | John Lewis, UK | Retail | 91500 | 9500 | Legacy System | IBM Sterling Order Management | 1Q15 |
| IBM | Wacker Neuson | Construction equipment | 4632 | 1375 | Legacy System | IBM Sterling Order Management | 2Q16 |
| IBM | Williams-Sonoma, Inc | Retail | 26800 | 4400 | Legacy System | IBM Sterling Order Management | 3Q15 |
| Infor | Allcargo India Ltd. | Logistics and Supply Chain | 8000 | 900 | Legacy System | Infor Supply Chain Execution | 2Q16 |
| Infor | Cosmoplas | Building Materials | 320 | 100 | Legacy System | Infor Supply Chain Execution | 1Q15 |
| Infor | Endries International, Inc. | Logistics and Supply Chain | 600 | 250 | Legacy System | Infor Distribution SX.e, Infor SCM | 2Q16 |
| Infor | Harris Ranch Beef | Ranching | 500 | 100 | Legacy System | Infor Demand Planning | 4Q15 |
| Infor | Johnstone Supply | Wholesale | 2000 | 1400 | Infor Distribution SX.e. | Infor Supply Chain Execution, Infor ION, Infor Distribution SX.e. | 3Q15 |
| JDA Software Group, Inc | Ahold USA | Retail | 236000 | 42960 | Oracle Retail Merchandisng System | JDA Supply Chain Software | 1Q16 |
| JDA Software Group, Inc | Asahi Kasei | Chemical industry | 29127 | 18500 | Legacy System | JDA Supply Chain Software | 1Q16 |
| JDA Software Group, Inc | At Home Group Inc. | Retail | 2950 | 565 | Legacy System | JDA Intelligent Fulfillment | 1Q16 |
| JDA Software Group, Inc | CEVA Logistics | Logistics and Supply Chain | 41000 | 6959 | JDA WMS Discrete | JDA Supply Chain Software | 1Q16 |
| JDA Software Group, Inc | Duratex | Building Materials | 12000 | 2000 | SAP MM | JDA Supply Chain Software | 1Q16 |
| Kewill | Cleverboxes | Retail | 50 | 10 | Legacy System | Kewill DropShip | 2Q16 |
| Kewill | Hankyu Hanshin Express France | Logistics and Supply Chain | 200 | 30 | Legacy System | Kewill Enterprise Forwarding | 2Q15 |
| Kewill | JBS USA Holdings, Inc. | Food Production | 142000 | 20000 | Legacy System | Kewill Transport, Kewill MOVE | 1Q15 |
| Kewill | Lufthansa Cargo AG | Airlines & Aviation | 4500 | 8400 | Legacy System | Kewill SCM | 2Q15 |
| Kewill | SIPGLFA Logistics | Logistics | 300 | 50 | Legacy System | Kewill Enterprise Forwarding | 4Q15 |
| Kewill | Tereos | Food Production | 24000 | 4300 | Legacy System | Kewill WMS | 1Q15 |
| Manhattan Associates | aCommerce | Internet | 850 | 1000 | Legacy System | Manhattan SCALE | 2Q16 |
| Manhattan Associates | Amrod | Printing | 1000 | 300 | Legacy System | Manhattan SCALE | 1Q16 |
| Manhattan Associates | Bedrosians Tile & Stone | Design | 300 | 75 | Legacy System | Manhattan SCALE | 1Q16 |
| Manhattan Associates | Central Garden & Pet Company | Consumer Goods | 3300 | 1650 | Legacy System | Manhattan SCALE | 1Q16 |
| Manhattan Associates | Levi Strauss & Co | Clothing | 17000 | 4494 | SAP AFS | Manhattan SCALE | 1Q16 |
| Manhattan Associates | PetSmart | Pet Retailer | 53000 | 7000 | Legacy System | Enterprise Order Management Solution | 3Q16 |
| Manhattan Associates | Tokyo Chemical Industry | Chemicals | 1500 | 1000 | Legacy System | Manhattan SCALE | 1Q16 |
| Manhattan Associates | Van Marcke Group | Wholesale | 1400 | 500 | Legacy System | Manhattan SCALE | 1Q16 |
| Oracle | Grupo Arcor | Food & Beverages | 20000 | 3300 | Legacy System | Oracle Demantra | 4Q15 |
| Oracle | Grupo Herdez | Food & Beverages | 8500 | 800 | Legacy System | Oracle Demantra | 2Q15 |
| Oracle | Land O’Lakes, Inc. | Food and Agriculture | 10000 | 14240 | Oracle PDP | Oracle Demantra | 4Q15 |
| Oracle | Lumentum | Telecommunications | 1550 | 870 | Legacy System | Oracle Product Information Management Cloud | 1Q16 |
| Oracle | Zebra Technologies Corporation | Information Technology and Services | 7000 | 3610 | Legacy System | Oracle Warehouse Management, Oracle ERP SCM R12 | 1Q15 |
| SAP | Arla Foods UK | Dairy | 19000 | 10600 | SAP WM | SAP EWM | 1Q14 |
| SAP | APLI PAPER S.A.U. | Consumer Goods | 105 | 28 | Legacy System | SAP Extended Warehouse Management | 2Q16 |
| SAP | Gebr. Heinemann KG | Retail | 6000 | 3600 | SAP MM | SAP EWM | 1Q15 |
| SAP | Kaeser Compressors | Machinery | 5000 | 116 | SAP EWM 7.1 | SAP EWM 9.1 | 1Q16 |
| SAP | Wollschläger GmbH & Co. KG | Wholesale | 1000 | 300 | Legacy System | SAP EWM | 1Q15 |
| SPS Commerce, Inc. | Green Goo by Sierra Sage | Consumer Goods | 50 | 10 | Legacy System | SPS Commerce Integrated Fulfllment | 2Q15 |
| SPS Commerce, Inc. | ICONIC | Retail | 400 | 30 | Legacy System | SPS Commerce Fulfilment EDI | 1Q16 |
| SPS Commerce, Inc. | Pet Supplies Plus | Pet supplies retailer | 1100 | 3000 | Manhattan WMS, SAP MM, SAP PP | SPS Commerce Integrated Fulfllment | 2Q15 |
| SPS Commerce, Inc. | SHOP.COM | Consumer Goods | 1500 | 500 | Legacy System | SPS Commerce Sourcing | 1Q16 |
| SPS Commerce, Inc. | Sonos | Consumer Electronics | 1275 | 1000 | Legacy System | SPS Commerce Integrated Fulfllment | 4Q15 |
Source: Apps Run The World, August 2016
Further Readings
An expanded version of this report covers the top 70+ SCM Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space.
We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2016 product revenues.
Their 2016 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
