Study: Supply chain planning market to grow 44 percent

An ARC Advisory Group study forecasts the SCP market will grow 44 percent in the next five years thanks to the global economic recession being largely over and capital spending on information technology increasing.

03/28/2012


An ARC Advisory Group study forecasts the SCP market will grow 44 percent in the next five years thanks to the global economic recession being largely over and capital spending on information technology increasing. Courtesy: ARC Advisory GroupThe worldwide supply chain planning (SCP) market is forecast to grow 44 percent over the next five years, representing a compound annual growth rate of 7.6 percent, according to a new ARC Advisory Group study. With the global economic downturn now predominantly in the past, capital spending on information technology has rebounded vigorously. The SCP market has participated in this rebound, as suppliers have reported recent revenue growth rates well above the long-term trend.

The supply chain planning market has been experiencing broad-based, above-trend growth. “Suppliers reported growth across SCP applications, geographical regions, and end user industry segments. This is being driven by a couple of prominent adoption trends and a release of pent-up demand from the preceding worldwide economic downturn,” according to Clint Reiser, Enterprise Software Analyst, and the principal author of ARC’s “Supply Chain Planning Worldwide Outlook."

Integrated business planning fuels growth

Businesses have recently exhibited pronounced interest in integrated business planning, including S+OP planning. Organizations continue to integrate historically disparate processes to obtain a more comprehensive view of their overall operations. This ongoing maturity and increasing sophistication of corporate business processes is contributing to increased adoption of S+OP solutions as companies attempt to take their planning to the next level. The value proposition of S+OP solutions is also being enhanced by other high-growth supporting technologies, such as business analytics and high speed in-memory computing technology.

Demand management Is a priority

Sales of demand management applications remain robust as companies continue to focus on aligning product availability with demand. Today’s solutions provide planners with standardized functionality to dynamically model numerous factors, such as seasonality, promotion up-lift, and pricing effects. The feature and usability improvements enable companies to accurately predict demand at various product levels across a vast number of SKU locations. The increasing use of demand signal repositories by large consumer goods companies and food and beverage companies is also contributing to increased use of demand management solutions. Demand signal repositories increase the volume, recentness, and overall value of POS data. The increased value offered by this data will increase the potential value companies can extract from its use within the demand planning process, and will therefore increase adoption of demand planning solutions.

Further details can be found here: www.arcweb.com/market-studies/pages/supply-chain-planning.aspx.

ARC Advisory Group

www.arcweb.com 

- Edited by Chris Vavra, Control Engineering, www.controleng.com 



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
Control Engineering Leaders Under 40 identifies and gives recognition to young engineers who...
Learn more about methods used to ensure that the integration between the safety system and the process control...
Adding industrial toughness and reliability to Ethernet eGuide
Technological advances like multiple-in-multiple-out (MIMO) transmitting and receiving
Virtualization advice: 4 ways splitting servers can help manufacturing; Efficient motion controls; Fill the brain drain; Learn from the HART Plant of the Year
Two sides to process safety: Combining human and technical factors in your program; Preparing HMI graphics for migrations; Mechatronics and safety; Engineers' Choice Awards
Detecting security breaches: Forensic invenstigations depend on knowing your networks inside and out; Wireless workers; Opening robotic control; Product exclusive: Robust encoders
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
News and comments from Control Engineering process industries editor, Peter Welander.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
Anthony Baker is a fictitious aggregation of experts from Callisto Integration, providing manufacturing consulting and systems integration.
Integrator Guide

Integrator Guide

Search the online Automation Integrator Guide
 

Create New Listing

Visit the System Integrators page to view past winners of Control Engineering's System Integrator of the Year Award and learn how to enter the competition. You will also find more information on system integrators and Control System Integrators Association.

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.