Report Predicts Growth, Higher Expectations For Supply Chain Service Providers

Compiled ByDeborah Austin The worldwide market for supply chain services will vault from $25 billion in 1999 to almost $140 billion by 2004, says a new International Data Corp. (IDC) report, "Supply Chain Services: Worldwide Market Forecast and Analysis, 1999-2004." Also expected: less emphasis on supply chain implementation services -- which generated 46% of supply chain revenue in 1999, and are forecast to fall to 24% by 2004 -- with more emphasis on operations management services, from less than 13% to almost 31%. "The projects will become increasingly complex, the number of technology solutions and media available will multiply, the competition will intensify, and clients will have higher expectations," says Nelly Zaharinov, senior analyst with IDC's Supply Chain Services research program. According to IDC, these changes will force vendors to enhance their supply chain service portfolios to deliver a full range of solutions. Another offshoot will be more alliances with software vendors who deliver Internet-enabled supply chain management products and other e-business applications. IDC is a Framingham, Mass.-based IT research, forecasting, and advisory firm.