SCM Market To Top $7.7 Billion, Researchers Predict

Compiled byTonya Vinas The supply-chain-management (SCM) software market, which had total software and service revenues of about $4.5 billion in 2000, will rise to $7.7 billion by the end of 2005, according to a revised study by ARC Advisory Group, Dedham, Mass. SCM encompasses collaborative planning and scheduling (CPS), supply-chain execution (SCE) and a new solution called supply-chain process management (SCPM). Historically, there has been a chasm between CPS and SCE. "ARC is now projecting that the growth rates of CPS and SCE will begin to converge," says Steve Banker, director of supply-chain research at ARC. "The applications in these markets are becoming more compatible and coherent. For users, this integrated capability is very good. For suppliers, this broadens the number of competitors that will lead to rationalization. Only some will be winners."