AMR predicts 5% growth in SCM applications in 2004
After years of caution, manufacturing companies are finally increasing investments needed to achieve their supply chain objectives. As a result, the Supply Chain Management (SCM) software market is expected to grow five percent, from $5.24 Billion in 2003 to $5.5 Billion in 2004, announced AMR Research at their SC Executive Conference. The bulk of new investment will be in SC execution initiatives and demand-driven supply networks.
AMR Research’s annual enterprise market projections conclude that companies seeking profitable growth are investing in technology that allows them to reduce costs while improving customer responsiveness. “An obsession with cost cutting and asset utilization has evolved into a focus on innovation and creating an ability to capitalize on the variability of demand,” said Kevin O’Marah, vice president of research at AMR Research. “Using technology to leap-frog the competition, reinvigorate growth channels, and provide shareholder value is the new earmark for SC savvy enterprises.”
Factors such as increased outsourcing, supplier collaboration, and the pursuit of perfect demand information have spurred the need for applications that provide better management visibility across the enterprise. Vendors who work in these categories are likely to experience the most growth in 2004.
AMR Press Release