Global SaaS Market On Track for 15% Growth Through 2019
The global software-as-a-service (SaaS)-based supply chain management (SCM) market is expected to grow at a compound annual growth rate of more than 15% between 2015 and 2019, according to a new report from Technavio Research.
The market growth will be fueled by the increased need for organizations to communicate with employees, customers, partners, suppliers, and various stakeholders, the firm says. The Americas region dominates this market, accounting for about 53% of the total market share.
“Enterprises are increasingly implementing transportation management system (TMS) software for better performance and efficiency of business processes,” Navin Rajendra, lead analyst, IT Services at Technavio Research.
“Various tools like predictive analytics are being integrated with the TMS software for the improved comprehension of supply-demand cycles and communication between carriers,” Rajendra said. “This helps in both transportation planning as well as supply chain logistics. Organizations are concentrating on combining capacity management with TMS software to benefit the SCM processes.”
SaaS-based SCM minimizes the purchase cycle and encourages high productivity at low operating expenses, the study notes. Small and mid-sized companies are embracing SaaS-based SCM technology because of its easy implementation and high efficiency, it says.
The key vendors in the global SaaS-based SCM market include Descartes Systems, Infor, JDA Software and SAP, the report says.
The market has both SaaS-based and on-premises players and has seen many mergers and acquisitions, which have allowed vendors to expand their SCM capabilities by enhancing warehouse management, order management, cart management, and customer services.