In 2019, the top 10 Supply Chain software vendors accounted for nearly 51.9% of the global SCM market which grew 7.1% to approach nearly $8.2 billion in license, maintenance and subscription revenues.
Last year SAP led the pack with a 15.4% market share, riding on a 4.8% jump in SCM license, maintenance and subscription revenues. Oracle was #2, followed by Blue Yonder, Verizon Connect and Infor.
We ask the simple question: Who’s buying SCM applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the SCM applications market size is expected to reach $8.9 billion by 2024, compared with $8.2 billion in 2019 at a compound annual growth rate of 1.6%.
| Exhibit 2: Worldwide SCM Software Market 2019-2024 Forecast, $M | |||
|---|---|---|---|
| Year | 2019 | 2024 | 2019-2024 CAGR, % |
| Total | 8254 | 8950 | 1.6% |
Source: Apps Run The World, November 2020
Top 10 SCM Software Vendors
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.
Here are the rankings of the top 10 SCM software vendors in 2019 and their market shares.
| Rank | Vendor Name | 2018 Supply Chain Management Apps Revenues, $M | 2019 Supply Chain Management Apps Revenues, $M | YoY Growth | 2019 Supply Chain Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | 4.8% | Subscribe | For SAP Integrated Business Planning, 2019 was a year with more than 200 new customers and four releases packed with innovations. SAP launched the new demand-driven replenishment (DDMRP) module and further strengthened its planning capabilities with driver-based planning and the Web-based planning app, including business collaboration with external partners. |
| 2 | Oracle | Subscribe | Subscribe | 7.6% | Subscribe | In October 2019, Oracle announced a solution for Integrated Business Planning and Execution. By integrating elements from Oracle EPM Cloud and Oracle SCM Cloud, this solution helps customers improve operational efficiency, reduce costs and improve business agility by integrating financial planning with supply chain operations. Rick Jewell, Oracle SVP, Supply Chain and Manufacturing Applications Development indicated that there are now over 2700 Oracle SCM Cloud customers in various stages of adoption. |
| 3 | Blue Yonder | Subscribe | Subscribe | 1.1% | Subscribe | JDA acquired Blue Yonder. In February 2020, JDA Software renamed to Blue Yonder. The name change is part of a re-branding initiative to better align the Company’s name with its cloud transformation and product roadmap, embracing a future full of endless innovation, continuous improvement and outstanding customer experience. |
| 4 | Verizon Connect | Subscribe | Subscribe | 1.4% | Subscribe | In July 2019, Verizon Connect launched the Navigation Mobile App for Verizon Connect Reveal. The app works with the Verizon Connect Reveal platform to give drivers directions based on their vehicle and load types to reduce miles driven and improve safety. |
| 5 | Infor | Subscribe | Subscribe | 10.1% | Subscribe | Infor purchased GT Nexus in 2015. In March 2019, Infor has rebranded its GT Nexus platform to Infor Nexus. Infor Nexus will combine GT Nexus, IoT and Infor Coleman AI to deliver an “intelligent supply chain network with a path to the autonomous supply chain. Infor Nexus connects over 65,000 companies and 100,000 people to move $1 Trillion in goods across the world’s largest global supply chains. |
| 6 | Manhattan Associates Inc. | Subscribe | Subscribe | 13.4% | Subscribe | In May 2020, Manhattan Associates announced the new Manhattan Active Warehouse Management solution, the cloud-native enterprise-class warehouse management system (WMS) that unifies every aspect of distribution and never needs upgrading. L’Oréal, has chosen to implement Manhattan Active Warehouse Management, a global, scalable and agile SaaS-based solution. |
| 7 | SPS Commerce, Inc. | Subscribe | Subscribe | 12.4% | Subscribe | In August 2020, SPS Commerce acquired MAPADOC business, an operating unit of SWK Technologies, Inc. and a leading provider of EDI System Automation solutions for the Sage and Acumatica markets. |
| 8 | Descartes Systems Group | Subscribe | Subscribe | 18.1% | Subscribe | In June 2020, Descartes Systems Group acquired Cracking Logistics Limited dba “Kontainers”, a provider of client-facing digital freight execution platforms. A few month earlier, Descartes Systems acquired Peoplevox, a cloud-based ecommerce warehouse management solutions (“eWMS”). Peoplevox serves direct-to-consumer ecommerce customers around the world. |
| 9 | E2open, LLC | Subscribe | Subscribe | 22.7% | Subscribe | In July 2019 E2open acquired Amber Road, Inc. Earlier, E2open acquired Cloud Logistics, a leading innovator of transportation management systems (TMS) for the global supply chain market. |
| 10 | BluJay Solutions | Subscribe | Subscribe | 15.4% | Subscribe | BluJay Solutions launched its Transportation Modeling application, built-in collaboration with LLamasoft, the leading provider of AI-powered supply chain analytics software. In 2020, BluJay Solutions acquired Expedient Software, a leading provider of customs and forwarding software for the logistics market in Australia and New Zealand. |
| Other | Subscribe | Subscribe | -2.7% | Subscribe | ||
| Subtotal | Subscribe | Subscribe | 7.1% | Subscribe | ||
| Total | Subscribe | Subscribe | 2.1% | Subscribe |
Source: Apps Run The World, November 2020
Other SCM software providers included in the report are: abas Business Software, ABB’s Enterprise Software Group, Access Group, Achilles, Adexa, Advanced, Aera Technology, AFAS ERP Software, Allscripts, Amber Road, American Software, Aptean, Aptos, Arena Solutions Arkieva, Arrowstream, Aspen Technology, BluJay Solutions, CDK Global, Cerner, ClickSoftware, Comarch SoftM Concentra Analytics Ltd, Construction Industry Solutions Corp., Dematic E2open, ENGIE Impact, Epicor, ESM Solutions, Exact Holding BV, Exela Technologies, Famous Software, FOURGEN Information Systems, Fourth Ltd, FuturMaster, GAINSystems, Generix Group, GEP Procurement, GHX, HCL Technologies Ltd., HighJump, IBM, IFS, Ignite Technologies, Intelex Technologies, iptor, KBC Advanced Technologies plc, Kinaxis Inc., Kingdee, Mercateo, MercuryGate, NCR Corporation, NeoGrid, OM Partners, Omnitracs, One Network Enterprises, OrderDynamics, ORTEC, Pitney Bowes, Plex Systems Inc, Pronto Software, QAD Inc., Quorum Business Solutions, Ramco Systems, Relex Solutions, River Logic, Inc., Roper Technologies, Inc., Sage, Sênior Sistemas, Slimstock, SmartERP SPICA GROUP, SupplyOn, Symphony RetailAI, Synchronoss, Taulia, TechnologyOne Limited, Tecsys, Tigernix Pte Ltd ToolsGroup, Tradeshift, Transplace, Trimble, UNIT4, Vizient, Vormittag Associates Inc., Works Apps, Yonyou, and others.
Custom data cuts related to the SCM Applications market are available:
- Top 120+ SCM Applications Vendors and Market Forecast 2019-2024
- 2019 SCM Applications Market By Industry (21 Verticals)
- 2019 SCM Applications Market By Functional Market (16 Markets)
- 2019 SCM Applications Market By Country (USA + 45 countries)
- 2019 SCM Applications Market By Region (Americas, EMEA, APAC)
- 2019 SCM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2019 SCM Applications Market By Customer Size (revenue, employee count, asset)
- 2019 SCM Applications Market By Channel (Direct vs Direct)
- 2019 SCM Applications Market By Product
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.
SCM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in SCM systems 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.
Source: Apps Run The World, November 2020
Further Readings
An expanded version of this report covers the top 120+ 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 2015-2019 product revenues.
Their 2019 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.
