In the past few years, the cloud was successfully implemented in Human Resources Management (HRM) and Customer Relationship Management (CRM). It is not a surprise that this trend has also impressed the Supply Chain Management (SCM) market as well. With vendors building their supply chain models on the cloud, the potential of double-digit growth has become more tangible.

1.  433 E Las Colinas Blvd #850, Irving, TX, 75039
 +1(214) 717-5900
 sales@appterra.com
www.appterra.com
Appterra is the only Collaborative Commerce Platform
designed for the cloud.
The Cloud in Supply Chain
Management
In the past few years, the cloud was successfully
implemented in Human Resources Management (HRM)
and Customer Relationship Management (CRM). It is
not a surprise that this trend has also impressed the
Supply Chain Management (SCM) market as well. With
vendors building their supply chain models on the cloud,
the potential of double-digit growth has become more
tangible. However, the consumerization of Information
Technology and the shifts towards the cloud has also
taken its toll on legacy Enterprise Resource Planning
(ERP) providers.
The traditional “build once” model of ERP providers has
been disrupted by this shift, making it more difficult for
them to keep up with cloud-based solutions. On the
other hand, cloud-based SCM offerings have been
attractive. Generating consistent high margin and
superior cash flow, they are more remarkable compared
to the traditional license-based business models. The
shift to the cloud benefits BoB on-demand SCM
vendors, but it also attracted traditional vendors that
acquire and develop Software as a Service (SaaS)
offerings.
According to the study conducted by Gartner, the cloud
penetration rate in Supply Chain Management is
expected to grow to 29.5 percent by 2017 – a great
leap from the 18.3 percent in 2012. It ranks second to
the cloud penetration rate in CRM, which has a 16.6
percent change in 5 years. Compared to the traditional
business model, the SCM software market growth is far
greater. With 18.6 percent growth by 2017, it is more
impressive than the 6.3 percent market growth of
traditional business models.
With these numbers, it is more important for companies
to constantly develop their supply chain management
systems. They should also appreciate the necessity of
strategic supply chain management in their business
operations. As the global supply chain stretches further
into emerging economies and market manufacturing
centers, the demand for SCM software also increases.
In fact, there is currently a continued strong growth in
Asia and Latin America in SCM investment.