Slow but Steady Growth in the Supply Chain Execution Market

The market for supply chain execution (SCE) solutions slowed significantly thanks to the global recession, but has still enjoyed an 8% growth rate since 2006, according to a recent study from analyst firm ARC Advisory Group.

In its analysis of the SCE market, ARC focuses on warehouse management systems (WMS), transportation management systems (TMS) as well as collaborative production management systems for both process and discrete industries.

ARC's logistics and production management studies lowered their forecasts based on the recession, and consequently the forecast for SCE is lower than it was just two years ago, explains Steve Banker, ARC's service director for supply chain management. "However, the good news is the recession is winding down, many growth drivers remain, and ARC's forecast reflects those drivers."

Each application had specific growth factors affecting that market in particular, but certain factors applied to all application areas. These common factors that cross all SCE applications include:

- Global sourcing

- Preferential trade agreements

- Manufacturing and logistics outsourcing

- Mergers and acquisitions

- Regulatory pressures.

These factors drove growth across all SCE applications and help explain why ARC sees a fairly robust forecast for the SCE market.

Source: http://logisticstoday.com/