Supply Chain Management Market To Grow 8.6%

Over the next five years supply chain management applications such as warehouse and production management will be the driving factoring in an 8.6 %growth in the market.

According a study entitled "Supply Chain Management Worldwide Outlook: Market Analysis and Forecast through 2010" released by Dedham, Ma.-based ARC Advisory, group, the market was $5,507 million in 2005 and will be $8,304 million 2010.

The report concludes that growth in manufacturing applications including collaborative production management is higher than in logistic applications.

"Contributing to growth is increased demand from developing regions that are constructing new plants and purchasing best-in-class solutions to achieve world-class manufacturing capabilities and have their products well accepted around the world," said Tom Fiske, Ph.D., senior analyst, ARC Advisory Group. Fiske continues, "As global competition increases, existing manufacturing facilities are under incredible pressure to improve their return on assets. To achieve higher levels of performance, these plants are adopting more solutions that better link manufacturing operations with business objectives, that increases their flexibility and agility, and that synchronizes their supply chain operations."

Supply chain synchronization is also spurring growth as the "role of a manufacturing plant is becoming the focal point in a supply chain network and is often the determining factor of its overall performance", the report says.

Factors such as time-to-volume, determining the correct product mix, and having the flexibility, adaptability, and responsiveness to exploit market opportunities are increasingly becoming important to success.

For more information on this study go to:

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