A new supply chain market report published by AMR Research has revealed a market-wide 4% revenue growth rate in 2004, reversing two previous years of decline. The report also singles out SAP, Oracle, and i2 as 2005''s market leaders.

     The report, entitled ''Market Analytix Report: Supply Chain Management, 2004 - 2009'', is AMR Research''s latest annual update on the progress of the supply chain management (SCM) market. It revealed that SCM market revenues increased 4% in 2004 to just under US$5.5 billion - which is very welcome news for vendors after widespread market contraction in the

previous two years. 116.30.151.81 This article is copyright 2005 UsingRFID.com.

     But the growth was not evenly distributed across SCM providers. According to the report, 14 vendors saw their revenue grow by more than 10% while 7 vendors saw their revenue shrink by more than 10%. SAP continued as the market leader for the second year running, with an 11% share.

Tough ride is over
     According to Lora Cecere, vice president of research for AMR Research, "For SCM providers, the past four years have been a tough ride, leaving many vendors to question their strategy while seeing the emergence of a new set of market leaders. The applications that sell today have changed, as has the way customers buy."

     The report contains revenue and growth rates for the top SCM players, as well as growth forecasts through to 2009. The top ten SCM vendors (by revenue) were: SAP, i2 Technologies, Oracle, PeopleSoft, Manhattan Associates, IBS, Manugistics, Infor Global Solutions, Swisslog, and RedPrairie. (Note: Oracle acquired PeopleSoft on December 28th, 2004.)

Seven market forces
The report also identifies seven major market forces that shaped the SCM market in 2004:

 

Importance of warehouse management and RFID;
Growing ERP dominance;
Increasing requirements for industry-specific applications;
Market consolidation;
Move to mid-market;
Shift from license to services;
Agile networks and contract manufacturing.

     The Market Analytix Report series provides targeted marketing and competitive information on key application markets of ERP, SCM, customer management, sourcing and procurement, PLM, and HCM, aimed at technology vendors. The latest report can be obtained directly from AMR Research.

 

 

 

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