SaaS-based SCM (Software-as-a-Service based Supply Chain Management) is a cloud-based approach to managing and optimizing the supply chain. It involves using subscription-based software hosted by a provider, eliminating the need for organizations to invest in infrastructure. SaaS-based SCM provides scalability, flexibility, and rapid deployment, supporting functions like inventory management, demand forecasting, and procurement. It offers cost-effectiveness, accessibility, collaboration, and advanced analytics to enhance supply chain performance.
According to SPER market research, ‘SaaS Based SCM Market Size- By Solution, By Deployment Mode, By Application, By Vertical, By End-User – Regional Outlook, Competitive Strategies and Segment Forecast to 2033’ state that the Global SaaS Based SCM Market is predicted to reach USD 38.18 billion by 2033 with a CAGR of 13.66%.
Several factors are responsible for the growth of the global SaaS-based Supply Chain Management (SCM) industry. Key benefits include scalability and flexibility, which allow firms to readily modify their software consumption in response to demand variations or expansion without having to make significant infrastructure adjustments. Cloud-based solutions enable real-time visibility and effective communication across many locations and partners, facilitating accessibility and cooperation. Cloud hosting enables quick deployment and upgrades, eliminating reliance on IT resources and guaranteeing access to the newest features. The ability to integrate with other corporate systems enables smooth data flow, improving accuracy and end-to-end visibility.
Due to specific supply chain constraints, it can be difficult to maintain a standardised platform while balancing customization and adaptability. Backup plans, SLAs, and open communication are required for vendor dependability and continuity. Ensuring regulatory compliance is difficult due to shifting requirements. For an implementation to be effective and users to adopt it, change management is essential. System accessibility and performance are impacted by connectivity and network resilience, necessitating backup measures. The total cost of ownership should be carefully considered by organisations, taking into account subscription fees, customization costs, integration costs, and data storage costs. It can be difficult to localise products for use in different languages, currencies, and cultural contexts.
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Impact of COVID-19 on Global SaaS Based SCM Market
Global supply networks were severely disrupted by the COVID-19 epidemic, which led to closures of factories, problems with transportation, and a labour shortage. SaaS-based SCM systems were essential in addressing these disruptions because they enabled remote collaboration, real-time visibility, and effective risk management. SaaS-based SCM solutions successfully managed the spike in e-commerce activity during the pandemic. Predictive analytics and accurate demand forecasting were stressed, which prompted the incorporation of advanced analytics capabilities into SaaS-based SCM platforms. As the focus shifted to improving the customer experience, SaaS-based SCM systems allowed for end-to-end visibility and proactive management. With SaaS-based SCM platforms providing scalability, flexibility, and simple setup, the pandemic hastened the shift to cloud-based solutions.
SaaS Based SCM Market Key Players:
Geographically, North America emerged as the dominant region in the SaaS Based SCM industry. The region has a sizable population of users of such software, and spending on transportation and logistics is rising, which is boosting the use of automation technologies in logistics and supply chain management. There are several different industries involved in transportation and logistics in this area, including railroads, ships, and aviation services. Additionally, some of the market key players are Oracle Corporation, SAP SE, Infor Inc., Blue Yonde, Kinaxis Inc., Others.
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