Study: Supply chain planning market to grow 44 percent

An ARC Advisory Group study forecasts the SCP market will grow 44 percent in the next five years thanks to the global economic recession being largely over and capital spending on information technology increasing.

03/28/2012


An ARC Advisory Group study forecasts the SCP market will grow 44 percent in the next five years thanks to the global economic recession being largely over and capital spending on information technology increasing. Courtesy: ARC Advisory GroupThe worldwide supply chain planning (SCP) market is forecast to grow 44 percent over the next five years, representing a compound annual growth rate of 7.6 percent, according to a new ARC Advisory Group study. With the global economic downturn now predominantly in the past, capital spending on information technology has rebounded vigorously. The SCP market has participated in this rebound, as suppliers have reported recent revenue growth rates well above the long-term trend.

The supply chain planning market has been experiencing broad-based, above-trend growth. “Suppliers reported growth across SCP applications, geographical regions, and end user industry segments. This is being driven by a couple of prominent adoption trends and a release of pent-up demand from the preceding worldwide economic downturn,” according to Clint Reiser, Enterprise Software Analyst, and the principal author of ARC’s “Supply Chain Planning Worldwide Outlook."

Integrated business planning fuels growth

Businesses have recently exhibited pronounced interest in integrated business planning, including S+OP planning. Organizations continue to integrate historically disparate processes to obtain a more comprehensive view of their overall operations. This ongoing maturity and increasing sophistication of corporate business processes is contributing to increased adoption of S+OP solutions as companies attempt to take their planning to the next level. The value proposition of S+OP solutions is also being enhanced by other high-growth supporting technologies, such as business analytics and high speed in-memory computing technology.

Demand management Is a priority

Sales of demand management applications remain robust as companies continue to focus on aligning product availability with demand. Today’s solutions provide planners with standardized functionality to dynamically model numerous factors, such as seasonality, promotion up-lift, and pricing effects. The feature and usability improvements enable companies to accurately predict demand at various product levels across a vast number of SKU locations. The increasing use of demand signal repositories by large consumer goods companies and food and beverage companies is also contributing to increased use of demand management solutions. Demand signal repositories increase the volume, recentness, and overall value of POS data. The increased value offered by this data will increase the potential value companies can extract from its use within the demand planning process, and will therefore increase adoption of demand planning solutions.

Further details can be found here: www.arcweb.com/market-studies/pages/supply-chain-planning.aspx.

ARC Advisory Group

www.arcweb.com 

- Edited by Chris Vavra, Control Engineering, www.controleng.com 



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Bring focus to PLC programming: 5 things to avoid in putting your system together; Managing the DCS upgrade; PLM upgrade: a step-by-step approach
Balancing the bagging triangle; PID tuning improves process efficiency; Standardizing control room HMIs
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.