The worldwide supply chain management and procurement software market grew 10.8% in 2014, reaching $9.9B in revenues in 2014.
Cloud-based Supply Chain Management (SCM) software sales grew 17% in 2014.
These and other insights are from the recently released Gartner analysis of worldwide supply chain management and procurement market, published May 12th. In addition to SCM market shares, the research firm also releases the rankings of its Supply Chain Top 25 to coincide with the Gartner Supply Chain Executive Conference 2015 held in Phoenix, Arizona May 12 – 14.
Key take-aways include the following:
- SAP grew their share of the worldwide SCM market from 23.9% in 2013 to 25.8% in 2014. Oracle, their closest rival, lost market share between 2013 and 2014, falling from 16% to 14.6%. The following graphic compares the top five vendors’ SCM and procurement software revenue market shares for 2014, followed by the original data table Gartner provided:
- SAP grew the fastest of the top five vendors, achieving 19.9% growth from 2013 to 2014. Oracle, their closest rival, grew 1.5%, and Manhattan Associates, 12%. Epicor grew 2.6% and JSA Software contracted by 1.7%. The following graphic compares growth rates from 2013 to 2014 for the top five SCM and procurement software vendors.
- The top 10 SCM vendors account for 55% of worldwide market share. Gartner found that an additional 57 vendors experienced 9.6% growth in 2014, reflecting strong demand for highly targeted, specialized supply chain solutions. Given the highly fragmented nature of the SCM market, many of these vendors rely on integration strategies to larger-suite providers’ SCM and ERP systems.
- 32% of the top global supply chain leaders for 2015 are competing in complex manufacturing industries. Intel, Cisco Systems, Samsung Electronics, Seagate Technology, Lenovo Group, Qualcomm, Cummins and Toyota Motor are among the top 25 supply chains globally according to Gartner’s analysis. The Gartner Supply Chain Top 25 for 2015 is shown in the following table:
- Six of the top seven suppliers who maximize Inventory Turns are complex manufacturers. Samsung Electronics (17.7), Lenovo Group (12.8), Cisco Systems (12.6), Seagate Technology (10.8), Toyota Motor (10.6) and Qualcomm (8.8) are the highest performing at turning inventory with the only exception being McDonald’s (157.3).
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- Sources: Gartner Says Worldwide Supply Chain Management and Procurement Software Market Grew 10.8 Percent in 2014, May 12, 2015. http://www.gartner.com/newsroom/id/3050617; Gartner Announces Rankings of Its 2015 Supply Chain Top 25, May 14, 2015. http://www.gartner.com/newsroom/id/3053118