DUBLIN, Oct. 16, 2020 /PRNewswire/ — The “Cloud Supply Chain Management Market – Growth, Trends, and Forecasts (2020 – 2025)” report has been added to ResearchAndMarkets.com‘s offering.
The cloud supply chain management market is expected to reach USD 8.61 billion by 2025 from the present estimate of USD 4.58 billion in 2019 at a CAGR of 11.09% during the forecast period.
The rapid adoption of cloud-based business operations has digitalized the supply chain industry as it can accommodate the relentless speed, amplitude of volatility, and facilitates enhanced responsiveness to supply chain disruptions. Organizations are restructuring their supply chain as a digital supply network that unites not just physical flows of products and services but provides affordable, efficient, safer due to redundant systems, infinitely scalable, and easier integration with existing systems.
Increased investment in IoT, a revolutionary technology that shows promising potential to the supply chain, is expected to drive the market. Tracking and monitoring are the main areas for IoT deployment in supply chain management. The technology allows warehouse and fleet managers to keep track of their cargo and inventory. It aids crucial functionalities such as the real-time location-tracking and forecasting contingency planning.
Key vendors are utilizing collaborative robots or co-bots, the new generation of robots that are safe, smart, collaborative, and can work side-by-side with people. For instance, Amazon, one of the largest e-commerce player, employees several types of robots (palletizers, robo-stow, and drive unit) within its warehouses and perform various activities such as pick up heavy items, prepare goods for shipping or for storage. Currently, it has 200,000 robots in its warehouse, and in 2020, the company invested USD 40 million in new 350,000-square-foot robotics innovation hub in Massachusetts which is expected to drive the market in the future.
Key Market Trends
Retail Industry is Expected to Register a Significant Growth
- The retail industry is being challenged with a sluggish economy, declining in-store sales and margins, rising labor costs, and so players require tools that enable organizations to manage paper documents and manage both structured and unstructured data more effectively in order to remain competitive. Hence, most of the key players are adopting cloud-based technologies to transform their supply chains with unprecedented visibility and insights from data. Technology integrations are focused on understanding the customer journey and providing a substantive improvement.
- Moreover, Buy online, Pick up in-store (BOPIS), is a trend for a mass-market breakout in 2019 that was adopted by several large retailers to increase the footfall in their stores. Walmart, the largest US retailer, has also has placed pick-up towers in stores and leveraged technologies that support BOPIS such as cloud computing software, devices and mobile architectures linked with inventory and supply chain data that allow store websites and in-store associates to coordinate online orders, in-store available stock, and shipping between stores, in turn driving the market.
- Customer retention has become more important than before due to an increase in players in the market with the growth of e-commerce. Cloud computing helps to enhance the customer experiences as they capture and analyze data from many sources, identify patterns and predict needs, and offer on-demand services. It also provides retailer access to all business content from the core line-of-business applications to provide timely responses and exceptional service to the customers, separating them from their competition.
- Additionally, automation tools improve distribution and inventory management by digitizing inventory information and using analytics and visual reporting processes. Therefore, it enables retailers to automate the supply chain from the inbound carrier to manage and distribute inventory to store-level reconciliation. It leads to lower operational costs, a simpler, faster way to reconcile invoices and improved fill rates by shrinking reorder time.
North America Will Experience Significant Growth and Drive the Market
- North America will experience significant market growth primarily driven by the adoption of GS1 standards that designed to improve the efficiency, safety, and visibility of supply chains across physical and digital channels in twenty-five sector, the emergence and application of cloud-based solutions in almost every industry that has reduced the operational costs by improving the efficacy and increased overall profitability.
- The healthcare sector in North America is changing at an unprecedented pace due to the impacts of technology, cost pressures, and the growing influence of the patient. Prominent healthcare distributors and suppliers are collaborating with technology providers to make their supply chain capabilities more agile by implementing cloud services for faster responses via shorter lead times and to improve service with lower total cost.
- For instance, in 2019, McKesson Corporation, provider of third-party logistics services, patient access support and specialty pharmacy solutions, partnered with TrakCel, a software developer for cell and gene therapy supply chain tracking and orchestration systems, to support cell and gene therapy, late-stage developers. Collaboration will integrate both companies’ supply chain tracking and patient access services to enable a more efficient path for the industry to develop the next generation of commercial therapies and is expected to drive the cloud computing market.
- Outbreak of COVID-19 has disrupted the global supply chain as most of the countries has shut down their border to contain the spread of virus. It has also reflected the importance of cloud supply chain management as most of the businesses are taking help of analytics and machine learning to develop flexible, responsive and interconnected ecosystem to convert real-time data into insights that can predict disruptions and vulnerabilities and provide near-term visibility.
The cloud supply chain management market is concentrated and is dominated by major players like SAP SE, Oracle Corporation, Infor Inc., Descartes Systems Group Inc., and IBM Corporation.
These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
- SAP SE
- Oracle Corporation
- Infor Inc
- Descartes Systems Group Inc
- IBM Corporation
- JDA Software Group Inc
- Manhattan Associates Inc
- Logility Inc.
- Kinaxis Inc
- HighJump Software Inc
- CloudLogix Inc.
- TECSYS, Inc.
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