Ecommerce Industry Driving Cloud Supply Chain Management Market

The concept of cloud computing is currently revolutionizing the supply chain management, with close tracking of the products over the course of its lifecycle at its backbone. This in turn means significant cost cuttings as the product is transported from its location of production to the intended customers. Some of the key benefits of cloud computing in supply chain management is scalability, immediacy, cost containment, efficiency, accessibility, flexibility, easy onboarding, and possibilities of further optimization. According to a recent business intelligence study by TMR Research, the global cloud supply chain management market is poised for a profitable future during the forecast period of 2017 to 2025. The report is titled “Cloud Supply Chain Management Market – Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 – 2025.”

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Some of the key factors primed to drive the market are increasing adoption of across the transportation industry, growing need for demand management solutions among small and medium sized enterprises, enhancement to the businesses by the means of minimizing potential failures, increasing awareness, need for low initial investment, and optimizing costs of enterprises. On the other hand, persistent need for adequate security and privacy, lesser options of customization owing to existing IT architectures, and data segregation issues are obstructing the market from attaining its true potential. That being said, radical growth of the ecommerce industry and mushrooming of SMEs is expected to create potential new opportunities in the near future.

Based on solution, the market can be segmented into procurement and sourcing, transportation management, inventory and warehouse management, sales and operation planning, order management, and demand planning and forecasting. Services can be managed, support and maintenance, and training and consulting. End use industries can be transportation and logistics, retail and wholesale, manufacturing, healthcare and life sciences, and food and beverages.

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JDA Software Group, Inc., Descartes Systems Group, Inc., Oracle Corporation, Infor, Inc., SAP SE, Logility, Inc., and Manhattan Associates, Inc. are some of the notable companies operating in the global cloud supply chain management market.

Cloud Supply Chain Management Market to Perceive Substantial Growth by 2025

Global Cloud Supply Chain Management Market: Snapshot

A number of small, medium, and large enterprises are actively shifting to cloud computing platforms for several advantages it offers, particularly in terms of efficiency and scalability of processes at reduced cost. In this scenario, the supply chain management (SCM) of cloud-based platforms is emerging as a strong necessity for the enterprises. Some of the key factors driving the global cloud supply chain management market are: strong adoption of cloud-based functions in the transportation sector as it allows in reliable tracking of the cargos, persistent need for various enterprises to lower the investment costs, benefits of enhanced business offered by cloud SCM as a result minimized potential failure, and spreading awareness regarding various business improving features offered by it.

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The vendors operating in the global cloud supply chain management market can expect a fruitful future, according to this study by TMR Research, which has projected to demand to increase at a promising CAGR during the forecast period of 2017 to 2025, owing to aforementioned factors. On the other hand, the companies of this market will have to find a solution to improve data security and ease privacy concerns that are mounting at the same time. In addition to that, compatibility issues owing to the lack of flexibility of existing IT structure of various established enterprises, moderate to low technical expertise in various regions, need for regular upgrades, and complexities in migrating are other glaring factors obstructing the prosperity of the global cloud SCM market. That being said, the vendors of this market are expected to gain huge new opportunities from the prosperity of the ecommerce in the emerging economies and incrementing adoption of new technologies in small and medium enterprises.

Global Cloud Supply Chain Management Market: Overview 

Computing in the cloud for supply chain management (SCM) is a bold yet highly advantageous process which has gained a significant traction over traditional systems. While traditional supply chain management is much more transactional, the cloud-based approach offers a 360-degree management control and real-time accuracy. Scalability, efficiency, cost containment, integration-capable design, and immediacy are the five critical benefits of choosing cloud-based supply chain management solutions over localized supply chain management. There is no skepticism expected on the part of cloud computing as the future of modern business.

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Global Cloud Supply Chain Management Market: Key Trends 

Across the world, the growth of the global cloud SCM market is anticipated to beef up as companies feel the need to implement a process that can potently develop and manage supply chain and its activities. Some of the primary driving factors of the world market could be reduced cost of ownership and augmenting worldwide awareness about the product among various organizations. According to the research experts, inventory and warehouse management solutions are expected to corner the market with a higher share whereas training and consulting could be crowned with a larger share.

With greater advantages such as reduction in downtime and loss, improved control of pressing applications, and enhanced performance and productivity are predicted to set the tone for the global cloud SCM market. Other reasons for the increased adoption of cloud SCM could include speedy deployments, economical infrastructure cost, and enhanced scalability. 

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Global Cloud Supply Chain Management Market: Market Potential 

Technology hunk IBM puts a foot forward for expediting tech innovations in India’s healthcare entrepreneurial ecosystem by helping startups such as Medibox and Oxyent Technologies to scale up. In this regard, the company has started with the IBM Smartcamp for Health Tech challenge that aims to accelerate growth in the B2C and B2B domains through innovations. Medibox believes in fast and efficient supply chain management by digitally connecting stockists and distributors with hospital and retail pharmacies. It offers a cloud-based solution that is compatible with any movable device and comes with a mobile application. It also offers a suite of solutions to convey schemes, offers, and launches across a supply chain when working with marketing and manufacturing firms. 

Global Cloud Supply Chain Management Market: Regional Outlook 

For the forecast period, the international cloud SCM market is envisioned to mark Asia Pacific as one of the regions with the highest CAGRs. North America, on the other hand, could win the honor of holding a larger share in the market.

While the adoption of cloud SCM is prognosticated to grow quickly, companies may encounter a few hindrances in the process, concerning current application migration complexities, data protection, and security reasons. Howbeit, the shifting of workload to the cloud and elevated requirement of sophisticated infrastructure management system could keep the global cloud SCM market in one piece during the times of turmoil. More opportunities are envisaged to find a cementing position in the market on account of decreasing overhead costs and rising awareness about the benefits of cloud SCM among consumers. 

Global Cloud Supply Chain Management Market: Competitive Landscape 

Major companies operating in the world cloud SCM market are prophesied to cater to the needs of the industry through partnerships and collaborations, mergers and acquisitions, and product development strategies. Descartes Systems Group, Inc., JDA Software Group, Inc., Infor, Inc., Oracle Corporation, SAP SE, Logility, Inc., and Manhattan Associates, Inc. are some of the top players making a mark in the market.

Higher Efficiency of Cloud Supply Chain Management Boost Growth

San Francisco, California, May 24, 2017: The global market for cloud supply chain management is anticipated to evince high rate of growth over the oncoming years, driven by greater need for enhanced visibility and improved productivity worldwide. The report, “Cloud Supply Chain Management Market – Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 – 2015” conveys crucial information about the primary growth drivers, restraints, and developments in the market, alongside a trend analysis.

The traditional supply chain management systems are much more transactional. However, the cloud-based supply chain management systems offer several advantages, of which real-time accuracy and 360-degree management control are the most prominent ones. The cloud supply chain management also features higher efficiency, scalability, and cost efficiency, apart from easy integration designs. Therefore, there is no skepticism whatsoever about the large scale adoption of cloud supply chain management systems across enterprises.

Most of the companies worldwide are witnessing the necessity of implementing a process which is capable of developing and managing the supply chain and the related activities. The reduced costs of ownerships is another factor propelling the growth of the global market for supply chain management. The rising awareness with regards to cloud supply chain management and their efficiency is also promoting its adoption.

Increased adoption of cloud supply chain management across the transportation management sector has been one of the key trends of the market. This sector might account for the largest share of the market by end user. Superior efficiency in billing and payment, route planning, load optimization, and carrier administration offered by this solution is responsible for the growth of this segment.

Significant reduction of downtime and the consequent loss, enhanced control features and improved productivity and overall performance are expected to level up the demand for cloud suplly chain management systems. Rapid installation and affordable infrastructural costs are other important benefits of these systems.

By geography, the global market for cloud supply chain management can be segmented into Asia Pacific, North America, the Middle East and Africa, Europe, and Latin America. North America is likely to command the largest share in the global cloud supply chain management market over the forecast period. Asia Pacific bears considerable growth opportunities, fuelled by the industrial advancement of countries such as China and India, where automation is being embraced rapidly across numerous sectors.

The major market players have been establishing collaborations, partnerships, and acquisitions so as to level up their position in the international competitive landscape. JDA Software Group, Inc., Manhattan Associates, Inc., Oracle Corporation, Descartes Systems Group, Inc., Logility, Inc., Infor, Inc., and SAP SE are some leading companies operating in the global market for supply chain management.