Market Trends: Supply chain execution software
A snapshot of the current market for SCE software.
By Staff -- Modern Materials Handling, 11/1/2007
The two major components of the supply chain execution (SCE) software market are warehouse management systems (WMS) and transportation management systems (TMS). Worldwide sales of each type of software topped $1 billion last year. TMS sales are projected to reach $1.5 billion by 2011, while WMS sales are expected to grow at a slower pace.
Today's SCE market is dominated by three types of companies: traditional best-of-breed suppliers, suppliers of enterprise resource planning (ERP) software, and materials handling automation companies. The ERP companies have begun re-asserting themselves in the supply chain market, and recent industry consolidation has left fewer best-of-breed companies in the mix.
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SCE trends
- On-demand is on the rise. 33% of TMS revenue comes from software delivered as a service.
- Out-of-the-box remains elusive. Only 10% of Supply Chain Consortium members report using a packaged WMS with no customization.
- LMS is the next big thing. The market for labor management systems is growing faster than that of WMS or TMS.
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