Global supply chain solutions market to hit $32.9bn by 2026
Transparency Market Res...
The global supply chain management solutions market is expected to reach a value of $32.9bn by 2026, according to a new report.
Transparency Market Research said the market is projected to expand at a CAGR of 11.2% during the forecast period from 2018 to 2026.
The expansion is attributed to rising demand for advanced supply chain management solutions (software and services) in industries and increasing adoption of on-premise deployment models to offer the finest services to the clients.
In the supply chain management solutions (software and services) market, North America is anticipated to be a rapidly expanding region, followed by Asia Pacific, Europe, Middle East & Africa, and South America during the forecast period.
Further, the supply chain management solutions (software and services) market is at an emerging stage and is anticipated to expand rapidly during the coming years.
Expansion in the e-commerce industry along with rapid delivery of goods in order to gain competitive advantage have led to high demand for supply chain management solutions (software and services) systems, said the report.
This, in turn, offers opportunities for key vendors to develop solutions focusing on the retail or e-commerce industries. For instance, Vinculum Solutions, an India based company, focuses on delivering solutions (Vin e-Retail WMS) and products specific to the retail industry.
The company's solutions support easy order delivery; last mile delivery; and integration with manufacturers, logistics companies, and web stores such as Amazon, Flipkart, eBay, Lazada, and Snapdeal. Online sales channels are becoming more complex and are encouraging manufacturing businesses to adopt supply chain management solutions (software and services) software.
This is expected to propel the supply chain management solutions (software and services) market in the coming years. Emergence of e-commerce has led to rise in adoption of supply chain management solutions (software and services) solutions.
The supply chain management solutions (software and services) market can be segmented based on deployment, industry, and enterprise size. According to the research study, the global supply chain management solutions (software and services) market is dominated by the food & beverage industry, which held a significant market share in 2016.
This is due to rise in requirement for and higher adoption of supply chain management solutions (software and services) in the food & beverage sector across the world. The food & beverage industry is increasingly adopting supply chain management solutions (software and services) to understand changing consumer preferences, minimise risks, and reduce costs, which leads to improved productivity of businesses.
Further, industries such as transportation & logistics, automotive, and industrial are also showing high growth in this market. In terms of deployment, the on-premise segment held a prominent market share in 2016 and is expected to continue its dominance over the forecast period.
Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.