In 2018, the top 10 Supply Chain software vendors accounted for nearly 53.3% of the global SCM market which declined -0.1% to approach nearly $7.6 billion in license, maintenance and subscription revenues.
Last year SAP led the pack with a 16% market share, while Oracle was #2, followed by JDA Software, 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 $8.6 billion by 2023, compared with $7.6 billion in 2018 at a compound annual growth rate of 2.7%.
| Exhibit 2: Worldwide SCM Software Market 2018-2023 Forecast, $M | |||
|---|---|---|---|
| Year | 2018 | 2023 | 2018-2023 CAGR, % |
| Total | 7561 | 8650 | 2.7% |
Source: Apps Run The World, December 2019
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 2018 and their market shares.
| Rank | Vendor Name | 2017 Supply Chain Management Apps Revenues, $M | 2018 Supply Chain Management Apps Revenues, $M | YoY Growth | 2017 Supply Chain Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | 4% | Subscribe | SAP SCM is becoming part of Integrated Business Planning that covers a range of functions from S&OP to inventory optimization. The recent acquisition of Contextor for robotic process automation will take the IBP messaging to the next level with increased use of bots to automate routine supply chain tasks. |
| 2 | Oracle | Subscribe | Subscribe | 4.2% | Subscribe | Launched Oracle Blockchain Applications Cloud for boosting traceability and transparency throughout the supply chain with features like Intelligent Track and Trace, Lot Lineage and Provenance, Intelligent Cold Chain, and Warranty and Usage Tracking. |
| 3 | JDA Software Group, Inc. | Subscribe | Subscribe | 7.3% | Subscribe | JDA announced its Cloud-based SCM apps accounted for nearly half of its bookings in third quarter of 2018 and showed increased momentum as it migrates its customers to the Cloud |
| 4 | Verizon Connect | Subscribe | Subscribe | -1.3% | Subscribe | Telco has invested $5 billion in Verizon Connect after buying Hughes Telematic, Fleetmatics, and Telogis in order to capture a slice of the Internet of Things market primarily through auto OEMs for advanced fleet and transportation management. |
| 5 | Infor | Subscribe | Subscribe | 1.9% | Subscribe | Infor Acquired Vivonet for hospitality with point-of-sale and inventory and procurement functionality for food service management, full and quick service restaurant, and hotel food and beverage micro-verticals. |
| 6 | Manhattan Associates Inc. | Subscribe | Subscribe | -6.1% | Subscribe | Expected single-digit drop in 2018 revenues as Manhattan transitions to the Cloud with subscription sales more than doubling in first nine months of 2018. |
| 7 | SPS Commerce, Inc. | Subscribe | Subscribe | 13.3% | Subscribe | SPS Commerce acquired CovalentWorks, a provider of cloud-based EDI solutions to 2,000 customers, and ToolBox Solutions for point-of-sale analytics and category management services. |
| 8 | Dassault Systemes | Subscribe | Subscribe | 7.0% | Subscribe | In its first foray into manufacturing ERP, Dassault acquired IQMS, which also offers supply chain management and EDI solutions. |
| 9 | Microsoft | Subscribe | Subscribe | 14.4% | Subscribe | Microsoft Dynamics 365/NAV/AX improve warehouse and inventory management by provide organisations with the supply chain visibility required to make informed decisions, and realise their strategic goals. |
| 10 | Descartes Systems Group | Subscribe | Subscribe | 15.9% | Subscribe | Descartes acquired PinPoint for fleet tracking and mobile workforce apps, Velocity Mail for parcel shipment scanning and tracking, and Aljex for transportation management solutions for freight brokers and providers. |
| Subtotal | Subscribe | Subscribe | 4,6% | Subscribe | ||
| Other | Subscribe | Subscribe | -4.9% | Subscribe | ||
| Total | Subscribe | Subscribe | -0.1% | Subscribe |
Source: Apps Run The World, December 2019
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 90+ SCM Applications Vendors and Market Forecast 2018-2023
- 2018 SCM Applications Market By Industry (21 Verticals)
- 2018 SCM Applications Market By Functional Market (16 Markets)
- 2018 SCM Applications Market By Country (USA + 45 countries)
- 2018 SCM Applications Market By Region (Americas, EMEA, APAC)
- 2018 SCM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2018 SCM Applications Market By Customer Size (revenue, employee count, asset)
- 2018 SCM Applications Market By Channel (Direct vs Direct)
- 2018 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, December 2019
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 2015-2018 product revenues.
Their 2018 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.
