Global Supply Chain Management Market Report

Supply Chain Management Market Size and Forecast 2024 to 2032

The global Supply Chain Management Market size is projected to be worth around USD 78.04 Billion by 2032 from USD 28.62 Billion in 2023 with a CAGR of 11.79% under the study period 2024-2032. SCM is the coordinated management of activities responsible for sourcing, procurement, production, and logistics to ensure an uninterrupted flow of goods & services from the suppliers to the end consumer. SCM combines major business processes of demand forecasting, inventory management, supplier collaboration, transportation, and distribution. The aim of SCM, therefore, lies in achieving maximum efficiency, minimizing operational costs, and improving customer satisfaction by delivering the product on time at the right price with no compromise on quality while mitigating risks. Contemporary supply chains are becoming more complex, covering several countries and spanning many industries due to globalization and advanced technology. Effective SCM means real-time sharing and, therefore, full transparency of data down the entire chain- a task accomplished more effectually with digital platforms, such as Enterprise Resource Planning systems, and advanced analytics. SCM also plays a very important role in responding to disruptions and changes in market dynamics. Other crucial drivers in the SCM market include fast industrial digitization and adopting technologies such as AI, blockchain, and IoT. Growing demand for real-time visibility and complexities in supply chains across geographies drive more significant traction toward the market. COVID-19 disclosed weaknesses in traditional supply chains and hastened the need to create resilient and adaptive SCM solutions.

Supply Chain Management Market Report - Key Highlights

• The software segment dominates the SCM market due to the growing need for automation, data analytics, and real-time supply chain visibility. ERP and warehouse management systems top the demand-forming software solutions.
• The cloud-based SCM solutions segment is witnessing the fastest growth as organizations rapidly move to cloud infrastructure to scale up, reduce operational costs, and improve collaboration across global supply chains.
• North America leads the SCM market, as this region is favorable regarding key technology providers, developed logistics infrastructure, and a high degree of penetration of advanced technologies in different industries.
• Asia-Pacific is the fastest-growing region, fuelled by rapid industrialization, increased e-commerce, and major investments in digital supply chains, especially within countries like China and India.

Supply Chain Management Market Drivers

• Real-time visibility of the entire supply chain will be a critical element that a business requires to stay ahead of its competition. As per Deloitte's report, 79% of companies consider real-time tracking & monitoring of supply chain activities a critical capability. Demand is further driven to a great extent by the rise in customer expectations about options for quicker delivery and the correct tracking of shipments. Technologies such as IoT sensors, GPS, and AI will make real-time data collection possible, enhance supply chain transparency, and make better decisions available. Predictive real-time disruption and response are considered a major market driver.
• Adopting AI and ML: Artificial Intelligence technologies and Machine Learning are drivers of predictive analytics, demand forecasting, and process automation that speed up supply chain management. According to McKinsey estimates, companies using AI in their supply chains can reduce forecasting mistakes by up to 50%. Besides reducing stockouts, this will optimize inventory and increase supply chain efficiency. Artificial Intelligence-powered chatbots, robotic process automation, and autonomous decision-making further automate regular supply chain tasks for cost savings with better utilization of resources.
• Shift to E-commerce and Omnichannel Retail: The COVID-19 pandemic has accelerated the need for supply chains that can move quicker and respond quicker. In 2023, $5.5 trillion of sales were processed through e-commerce channels worldwide, which puts extraordinary pressure on the supply chains for faster and more efficient delivery of merchandise. Omnichannel strategies are increasingly employed to try to meet the rising demands of the e-consumer for seamless shopping. These need highly flexible and integrated supply chain systems. Efficient last-mile delivery solutions also drive growth in SCM technologies customized for e-commerce.

Supply Chain Management Market Challenges

• High Implementation Costs: Advanced SCM technologies are highly capital-intensive to implement. This tends to act as a barrier for SMEs that may not afford to adopt such modern solutions. The high costs of software licensing, systems integration, training, and upgrading drive away most organizations from embracing such technologies. A survey by the Global Supply Chain Institute found that nearly 45% of the firms considered cost as one of the major barriers to SCM technology adoption, thereby restraining the overall growth potential of the market.
• Supply Chain Complexity and Cybersecurity Risks: Supply chains have emerged more complex with the addition of globalization & digitization, and that is how they become an easy and soft target for a cyberattack in no time. It is reported by Cybersecurity Ventures that there has been a 42% increase in supply chain-related cyberattacks. These attacks disrupt operations and lead to huge financial loss and loss of reputation due to data breaches, ransomware attacks, and intellectual property theft. Thus, organizations are skeptical about being completely open toward digital SCM solutions that cannot guarantee complete safety against cyber threats and protection for sensitive data.

Global Supply Chain Management Market Share by Region (Representative Graph)

Competitive Overview

The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide. The prominent players covered in this report are SAP SE, Oracle, Blue Yonder Inc., Infor, Manhattan Associates, Coupa Software Inc., IBM, American Software Inc., Korber AG, Epicor Software Corporation. This is a tentative list and can be modified as per client requirements. This section of the report will cover detailed profiles of the above companies, their business strategy, financials, and SWOT analysis.

Recent Advancements

• Blockchain for SCM Transparency: Blockchain technology is increasingly adopted to improve supply chain transparency and traceability. It creates indelible records of transactions and movements, helping to prevent fraud and compliance while offering better product authenticity. Companies like IBM are developing blockchain-based SCM platforms, enabling stakeholders to share data securely and gain better visibility along the value chain.
• AI-Driven Demand Forecasting: AI-powered demand forecasting tools are used in the SCM market, empowering business owners to effectively predict customer demands and shape up their inventory in compliance. SAP launched an AI-driven suite for SCM, amply leveraging machine learning to improve forecast accuracy for preventing stockouts.

Latest Developments in the Supply Chain Management Market

• July 2024: Oracle Expands Cloud SCM Platform expanded its cloud-based SCM platform by including artificial intelligence and machine learning capabilities that improve demand forecasting, inventory management, and supply chain automation.
• March 2024: Microsoft and FedEx Collaborate on Logistics Solution to connect the FedEx logistics network with Microsoft's cloud and AI to unlock real-time supply chain visibility and more personalized customer experiences; Microsoft partnered with FedEx.
• January 2024: SAP collaborated with Google Cloud to offer value-added cloud-based SCM solutions using Google's AI and data analytics tools, ensuring supply chain processes and overall operational efficiency optimization.

Global Supply Chain Management Market Report: Scope

Market Segmentation

This section of the Supply Chain Management market report provides detailed data on the segments at country and regional level, thereby assisting the strategist in identifying the target demographics for the respective product or services with the upcoming opportunities.

By Component

• Solution (Transportation Management System, Planning & Analytics, Warehouse & Inventory Management System, Procurement & Sourcing, Manufacturing Execution System)
• Services (Professional Services, Managed Services)

By Deployment

• On-premise
• Cloud-based

By Enterprise Size

• Small & Medium Sized Enterprises
• Large Enterprises

By Vertical

• Retail & e-Commerce
• Healthcare
• Automotive
• Transportation & Logistics
• Food & Beverages
• Manufacturing
• Others