Gartner: Businesses set to standardise supply chain systems

Businesses are expected to standardise on integrated supply chain systems to improve the visibility of their business processes

Businesses are expected to standardise on integrated supply chain systems to improve the visibility of their business processes.

This will drive upgrades and new deployments.

According to the latest figures from analyst Gartner, supply chain management (SCM) software is on track to reach $10bn in 2014, a 12.2% increase from 2013.

Gartner predicted that 16% of growth in supply chain management software will come from companies deploying the software for the first time.

Chad Eschinger, research vice-president at Gartner, said: "Both supply chain execution and supply chain planning revenues are on course to grow at double-digit rates in 2014."

A survey of 447 people in the US who are involved in supply chain management identified inaccurate forecasts of demand for products and variability of demand as the main obstacles they faced.

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Both can be overcome with the help of supply chain initiatives and technologies, Gartner stated.

The survey found that 43% of the supply chain professionals surveyed indicated that, to deal with rising levels of integration complexity, they were strongly committed to a single underlying technology platform that would improve the visibility of internal processes and enable more effective communication and collaboration with suppliers and buyers. Eschinger said: "This trend towards a unifying application platform is growing and will further drive sales of supply chain solutions as more companies adhere to a platform strategy.”

Gartner estimated that by 2018, nearly 70% of businesses will look for a a single-platform strategy to integrate disparate systems, to improve supply chain visibility.

"Through 2018, 40 per cent of new spending and 80 per cent of recurring end-user spending will focus on advancing and extending foundational supply chain capabilities," said Eschinger.

He expected that twice as many organisations will deploy their supply chain software in private clouds and hosted environment, compared to using multi-tenanted software as a service products.

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