The market for supply chain management software applications, maintenance and services, or SCM, came in at $6.2 billion in 2009 including applications for procurement software and $4.2 billion without procurement.
That represented a decline of 1.9% from 2008, according to Chad Eschinger, an analyst with Gartner: (203-964-0096). While most businesses would have been proud to only show a 1.9% drop in revenues last year, it’s a far cry from the growth this industry has been used to posting.
In fact, it’s the first time the market has declined since Modern began publishing our annual Top 20 list in 2001. Just two years ago, AMR Research, now part of Gartner, was forecasting the total supply chain management market to reach or exceed $8 billion by 2010. That just isn’t going to happen. “It was a very difficult year,” says Eschinger.
Last year was a year for the status quo. The market leaders look much the same as they did in 2008, with SAP ($820 million) and Oracle ($715 million) at the top of the list, with numbers that were essentially unchanged from last year. They were followed by JDA Software ($385.6 million), RedPrairie ($261 million) and Manhattan Associates ($247 million).
About the Author
Bob Trebilcock, executive editor, has covered materials handling, technology and supply chain topics for Modern Materials Handling since 1984. More recently, Trebilcock became editorial director of Supply Chain Management Review. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.
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