Supply Chain Management Software Market Size, Share, Growth Analysis, By Software Type (Purchasing Management Software and Inventory Management Software), By Deployment Mode (On-premises, Cloud-based), By Organisation Size (SMEs, Large Enterprises), By Industry Vertical (Healthcare & Pharmaceuticals, Manufacturing), By Region - Industry Forecast 2024-2031

Drivers

Cloud Supply Chain Management Increasingly being Adopted by SMEs

• Modern businesses rely heavily on technology, with larger companies having their own IT department that manages and manages business processes. SMEs don’t really have adequate IT infrastructure. due to additional cost requirements and for managing and maintaining an IT department. Therefore, most SMEs and startups are adopting cloud-based SCM systems, where they can reap the benefits of the IT department through cloud management systems without having to hire additional staff at additional cost. The storage flexibility of cloud-based SCM provides scalability, which is very important for SMEs and will help them with unexpected growth in the first year of business operations. Besides, cloud based SCM provides powerful inventory management for SMEs, in latest performance improvements It is very responsive.

Tendency towards Technological Advancement and Investment that will Drive Market Growth

• AI-driven supply chains are used to improve efficiency and increase business revenue. This technology is especially at the forefront in areas such as manufacturing, maintenance, and sales. Failure is anticipated and the supply chain is enabled to continue without interruption. These technologies are increasingly being used to improve transparency, supply chain visibility, communication, and SCM implementation. Companies have been using automation to pursue efficiency in their supply chains for decades. This emerging change is accelerated by technological advances such as intelligent automation (IA). IA integrates artificial intelligence and robotics to make machine-intensive work.

Restraints

Growing Security and Privacy Concerns in Corporations

• Companies adopting cloud-based SCM face security and privacy issues. Companies have private data that needs to be protected to avoid data breach and theft as this can affect the overall reputation of the company. Company data can be leaked over the internet and accessed by unauthorized users, which is a factor as it is increasingly affecting the industry. For example, cloud-based transportation management systems require a multitenant architecture, in which one piece of software runs on a server shared by multiple customers so the company’s customers are likely to see competitors’ data. These security issues with the use of data by unauthorized users will likely threaten enterprise data security and competitive operating conditions, as well. Thus, these issues related to security and privacy add to the growing industry concerns and restrain the growth of the market during the forecast period.

Limited Knowledge of Supply Chain Management Tools

• Awareness of supply chain management solutions and their benefits is low among healthcare professionals. With the introduction of various supporting services such as inventory-free inventory systems over the years, unlocking the full potential of SCM tools will require delivery improved training in SCM principles.