Global Supply Chain Market Research Report 2024-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2030

Global Supply Chain Market Research Report 2024-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2030

The supply chain covers the entire process from the initial stages of sourcing raw materials to delivering products or services to the end user. The components of a supply chain include suppliers, manufacturers, warehouses, transportation companies, distribution centers, and retailers. Supply chain functions include product development, marketing, operations, distribution, finance, and customer service. Today, many supply chains are global in scale. Since supply chains are multi-stage efforts, they require a lot of coordination to run effectively. Supply chain management is all the activities that keep the supply chain running smoothly. Information systems and tools help streamline supply chain management processes, improve efficiency, and enhance accuracy.

Market Overview:

The latest research study on the global Supply Chain market finds that the global Supply Chain market reached a value of USD 25354.75 million in 2023. It’s expected that the market will achieve USD 49907.29 million by 2029, exhibiting a CAGR of 11.95% during the forecast period.

In times of inflation, companies need to incorporate leading market indicators, real-time consumer trends, and other external data signals into demand forecasts to better predict product mix and volumes. Businesses can use planning software to model scenarios in which supply chains come under stress. For example, the impact of a sudden surge in demand or a natural disaster disrupting the flow of goods from an overseas supplier can be simulated. Having alternative suppliers or sources of raw materials can help organizations avoid sudden spikes in costs. Businesses are also operating closer to customers and working with partners.

Importance of supply chain and advantages of supply chain management software

A supply chain is a coordinated network that includes all companies, facilities, and business activities involved in sourcing, developing, manufacturing, and delivering products. Every business relies on its supply chain to produce products and bring them to market. Supply chain management is a critical component to the success of any business as it enables organizations to streamline processes, optimize costs, reduce delivery times, and ultimately increase customer satisfaction. For local businesses, anything from severe weather to unexpected surges in product demand, product recalls, lawsuits and bad publicity can disrupt supply chains. For multinational enterprises, choosing suppliers in different geographical locations around the world complicates the supply chain. Stricter regulations, trade wars, raw material shortages, climate change, economic uncertainty, changes in consumer demand, lack of visibility in tracking goods and services, language and cultural barriers, etc., have exacerbated the risks and challenges of global supply chain management. Businesses need to coordinate, communicate, and collaborate with cross-border parties in manufacturing, warehousing, and logistics. Many companies are diversifying to increase operational flexibility, including leveraging multiple suppliers of materials, components, and software. More flexibility and protections are also being built into contracts between supply chain partners. A seamless supply chain management system protects the complete customer experience.

The use of supply chain management software enables managers to increase transparency and control increasingly complex supply chain operations. One of the biggest benefits that supply chain software provides businesses is more robust operations within a smaller footprint. Supply chain software allows managers to create precise supply plans and reduce the storage of excess, unwanted inventory. Supply chain software can track every step of the supply chain, find errors and inefficient processes, and improve them. Supply chain software helps businesses reduce costs by adopting best practices like just-in-time manufacturing and reducing material waste. By tracking payments with supply chain software, businesses can improve cash flow. Supply chain activities are often subject to strict compliance protocols and procedures. Supply chain software can track compliance requirements and reduce litigation and criminal costs. Supply chain management software is often used in conjunction with other systems, some of which include workplace safety, product quality, and building relationships with new suppliers. Communicating when working with different suppliers and customers can be challenging, and large amounts of incomplete information can lead to miscommunication. Supply chain software supports collaboration and communication between partners, suppliers, and distributors, and businesses can improve customer service and retention.

Growth in retail and e-commerce

The retail industry is one of the fastest-growing vertical industries due to the increasing purchasing power of consumers. Factors such as rapid urbanization and increasing disposable income, smartphone penetration, and consumers' pursuit of comfortable living are driving the growth of the retail market size. To differentiate themselves and cultivate customer loyalty, retailers must leverage data analytics to tailor their products, marketing strategies, and customer interactions to individual preferences and needs. As the online marketplace proliferates, retailers are adopting innovative technologies such as cloud computing, big data analytics, digital stores, and social media marketing. The incorporation of augmented reality allows consumers to visually see selected items. The Internet enables retailers to expand their audience from local to overseas and increase customer convenience, thereby promoting industry growth. Mobile-first websites, dedicated apps, emerging payment methods, and other tools make smartphone shopping easier. With the rise of e-commerce, more and more people are purchasing goods from online retailers. Online retailers offer a wide selection, convenience, competitive prices, and the ability to read customer reviews. With the rise of omnichannel shopping experiences, buyers expect to be able to research, browse, shop, and purchase seamlessly across devices and various commerce platforms.

While many industries rely on supply chains, managing retail supply chains is particularly challenging. Retailers must source and deliver multiple products simultaneously and quickly, and a retailer's product lines often change regularly as customer demand changes. E-commerce has changed the way companies manage their supply chains in many ways. One of the main impacts is that e-commerce has shortened product life cycles, which has led to the development of new delivery methods, such as same-day and next-day delivery. E-commerce has created a need for more accurate inventory management, prompting businesses to use real-time data to track inventory levels. E-commerce has led to the globalization of supply chains. Manufacturers can now source products from around the world and sell them to customers in different countries. This brings new challenges to supply chain management, such as managing customs and duties and ensuring compliance with local regulations. Faced with a global supply chain that is prone to disruption due to various factors, retailers need to build resilient and flexible supply chains to reduce potential risks and ensure the timely delivery of products.

Region Overview:

In 2022, the share of the Supply Chain market in United States stood at 47.72%.

Company Overview:

The major players operating in the Supply Chain market include SAP SE, Oracle Corporation, Blue Yonder, Körber (HighJump), Coupa, etc. Among which, SAP SE ranked top in terms of sales and revenue in 2023.

As the market leader in enterprise software, SAP helps companies of all sizes and industries improve their operations by redefining ERP and building networks with intelligent companies that ensure transparency, resilience, and sustainability across all supply chains. SAP's end-to-end suite of applications and services enables customers to operate profitably, continuously adapt, and differentiate themselves globally.

SAP is a provider of enterprise application software and related services. It provides a wide range of solutions, including enterprise resource planning and financial management, intelligent technologies, analytics, people engagement, human resources, digital supply chain, network, spend management, customer relationship management, and customer experience. The company offers a range of business software and enterprise applications that are designed for applications, analytics, cloud, mobile, database and technology operations.

Segmentation Overview:

By type, Solution segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Retail & Consumer Goods segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Supply Chain market covered in Chapter 3:

SAP SE
e2open
IBM Corporation
Epicor Software Corporation
Coupa
Blue Yonder
Kinaxis Inc.
The Descartes Systems Group Inc.
WiseTech Global
Oracle Corporation
Manhattan Associates
Körber (HighJump)
Jaggaer
Infor

In Chapter 4 and Chapter 14.2, on the basis of types, the Supply Chain market from 2019 to 2030 is primarily split into:

Solution
Services

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Supply Chain market from 2019 to 2030 covers:

Retail & Consumer Goods
Healthcare & Pharmaceuticals
Manufacturing
Food & Beverages
Transportation & Logistics
Automotive
Other

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2019-2030) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)