Supply Chain Sophistication Drives Supply Chain Planning Growth
Supply chain planning (SCP) solutions use complex algorithms, optimization techniques, and heuristics to solve supply chain objectives within the planning horizon. ARC defines supply chain planning to include four key application areas: extended SCP, manufacturing planning, inventory/distribution planning, and demand management.
SCP suppliers reported vibrant, above-trend growth in 2010 and 2011. Suppliers noted growth across SCP applications, geographical regions, and end user industry segments. This growth is being driven by specific adoption trends and a release of pent-up demand from the preceding worldwide economic downturn.
ARC expects much of the functionality we categorized as extended SCP to continue growing at above average rates. In particular, S&OP and business intelligence solutions continue to exhibit strong sales and appear poised to continue on this path.
Organizations continue to adopt S&OP solutions to integrate historically disparate processes and obtain a more comprehensive view of their overall operations. The increased scope of planning associated with S&OP has also moved the planning process up the corporate ladder, leading to increased executive involvement. 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.
Strategic Issues
Capital spending on information technology has rebounded vigorously during the economic recovery. The SCP market has participated in this rebound. Growth has been wide-spread across market segments. However, going forward ARC expects certain segments to outperform others. This study will help to answer questions such as:
• Who are the leading SCP suppliers in the various regions, industries, and other revenue segments?
• What are the expected growth levels by end user industry and when will this growth occur?
• What factors drive growth in the SCP market?
• What application categories are expected to experience the greatest growth and what factors will drive that growth?
