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Logistics: Cloud and AI Help Drive Growth of Supply Chain Management (SCM) Offerings

By Dick Weisinger

It’s not a surprise, but the logistics and supply chain market segment is doing well, and as might be expected, the vendors selling enterprise software to businesses in this sector are doing well too.  In 2017, the supply chain software market increased by nearly 14 percent to $12.2 billion, according to Gartner.

Vendors doing well in this segment include SAP, Oracle and JDA.  As might be expected, vendors with cloud options are doing well. The Gartner report found that smaller SCM vendors with cloud offerings saw greater than 40 percent growth in 2017.

 Balaji Abbabatulla, research director at Gartner, said that “cloud solutions typically have lower barriers to entry and are more easily scalable, and are therefore a better fit for midsize organisations looking at SCM for competitive advantage. We expect that vendors offering a well-defined, vertical-industry-oriented strategy for midsize organisations will grow rapidly over the next five years.”

The use of AI and intelligence to SCM software is becoming more common too.  Abbabatulla said that “AI can bring productivity and user experience improvements by automating routine tasks and providing more effective support to complex decisions.”

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