Supply chain software: Field expected to grow, AMR reports
AMR Research is forecasting steady growth for the supply chain management software industry for at least the next five years, and at the moment RedPrairie seems to be leading the pack.
Sean Murphy -- Modern Materials Handling, 1/14/2009
AMR Research is forecasting steady growth for the supply chain management software industry for at least the next five years, and at the moment RedPrairie seems to be leading the pack.
According to a recent AMR Report, “Supply Chain Management Market Sizing Report, 2007-2012,” which looks ahead over the next five years, the management application market should grow about 2.5 percent in the next five years to an estimated 9.2 billion, despite the American recession and its ripple effects on the world economy.
AMR Research Director Greg Aimi said a bad economy is good for the supply chain management software market, as the belt-tightening that usually comes with hard economic times will be forcing supply chain managers to cut costs.
“How do you take the same or less materials and do more with it? Software optimization,” Aimi said.
The research firm named RedPrairie Corporation as the leading company among the top 10 vendors. RedPrairie has shown a 24 percent revenue growth.
Aimi said some smart acquisitions on the part of RedPrairie, in combination with a shrinking number of competitors has given the company a boost. In particular, RedPrairie recently acquired LIS, a warehouse management systems maker based in Europe, and software products BlueCube and StorePerform, which are marketed to retailers. Aimi said this gave RedPrairie a presence in a new geographical region—Europe—and a new industry—retail—to break into.
“We recognize the important role of supply chain management technology in helping companies create greater efficiencies,” said RedPrairie CEO Mike Mayoras, “Our focus lies on continued support of businesses so they emerge stronger from this challenging economic environment.”
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