Cloud Supply Chain Management (SCM) Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI1232
Cloud Supply Chain Management (SCM) Market size is expected to witness an exponential increase in CAGR over the forecast period. Recent advancements in cloud computing technologies have enabled ground-breaking innovations in supply chain management applications. In the current digitized world, cloud computing acts as an enabler and can have a strong influence on the business and the supply chain operating model by enabling social media functions and mobility. Cloud SCM market can assist enterprises to understand and acknowledge the benefits from crucial market trends that are redefining traditional supply chain networks, including industrial-grade digital technologies, the arrival of end-to-end visibility, and surging data volumes.
Most SCM strategies were created and implemented when the business environment was relatively more stable. At that time, skilled management teams could make use of predictable business cycles to navigate around the challenges and still maintain the focus on their supply chain strategies on reducing costs. This was done partly by launching low-cost manufacturing in locations, which were located away from core markets, lowering inventories by integrating partners into an ecosystem, applying lean principles to their processes, and rationalizing the supplier base. Currently, as every business is a digital business, organizations need to reanalyze the supply chain as a digital supply network that combines not just the physical flow of products and services, but also talent, finance, and information, which is anticipated to drive the cloud SCM market demand. Additionally, cloud computing has made it possible to closely track a product throughout its lifecycle. SCM Cloud has improved the information sharing across the supply chain as it provides appropriate messages to users, who are responsible for a specific procurement thus reducing costs and making processes transparent and efficient.
There is a growing awareness of benefits of cloud SCM market and a rising demand for management solutions among enterprises. Various sectors and industries are adopting cloud-based SCM; for instance, in transportation management. Key factors, such as the necessity for greater visibility, better resource consumption, and lower ownership costs, also fuel the need for cloud SCM market.
The segmentation of the cloud SCM market has been done on the basis of deployment models, solutions, organization sizes, sectors, and regions. Segmentation is done based on deployment models by further classifying it into private, public, hybrid, and community. Private clouds may be owned, managed, and operated by the organization, a third party, or some combination of them and it may exist on or off premise. It is a choice for companies that already own data centers and developed IT infrastructure and emphasize on security or performance. Public clouds are pay-per-use services, which provide infrastructure and off-site services over the internet, further reducing deployment costs. Hybrid clouds in the cloud SCM market are the most economical model for modern companies combining benefits of the controlled environment in private clouds and rapid elasticity of public clouds. The community cloud involves cooperation and integration of IT infrastructure and resources from multiple organizations and may serve large inter-organizational projects.
Cloud SCM market can be segmented based on the various sectors or verticals finding applications in the fields of food and beverage, healthcare and life science, manufacturing, retail, and transportation and logistics.
The transportation management segment is predicted to hold the largest cloud SCM market share as it offers capabilities, such as route planning, load optimization, order visibility, carrier administration, route optimization, billing & payment, and delivery. The solution allows interactions between an order management system and warehouse. It also handles important operational functions such as the creation of plans and strategies and their executions. cloud SCM market significantly cut down on lost product since it is easier to locate a shipment during any stage of transport.
By organization size the cloud SCM market can be sub-classified into small and medium sized enterprises (SMEs) and large-scale enterprises based on the size of the expanse and range of control of the organization.
U.S. cloud SCM market share is forecast to continue leading the industry. Advancements in technology and infrastructure and shifting of workload to the cloud environment will fuel the APAC industry.
Large enterprises may face complexities when migrating to cloud-based supply chain management. The adoption of cloud SCM market may cause businesses to experience forced upgrades and barriers in the smooth flow of information. Lack of technical expertise may prove to be a major challenge to enterprises regardless of their size. Security concerns relating to data security and collection of personal information will continue to pose a threat to cloud SCM market. As cloud hosts must abide by public perception standards and strict government regulations for maintaining privacy, cloud technology is currently trying to implement high-security measures and practices in supply chain management also. As interconnectedness may have a potential for security threats, it calls for a tight security monitoring and implementation across all cloud-based digital platforms while still sustaining communication and enhancing the flow of business practices.
There is a limit on the customization and flexibility of enterprises’ IT architecture that currently exists, which if managed to overcome will streamline the growth of cloud SCM market. By adopting strategies, such as the development of new products, partnerships, collaborations, mergers, and acquisitions, key players in the cloud SCM market, Oracle Corporation, SAP SE, Kinaxis, Inc., HighJump, CloudLogix, Manhattan Associates, and TECSYS are able to cater to this market.
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